(a)
Available-for-sale securities: Available-for-sale are short-term or long-term debt equity securities that are not classified as trading or held to maturity securities. These securities are readily sold in the short-term to receive return on investment.
To Record: The transactions and post to the account Stock Investments for Company K.
(a)
Explanation of Solution
Record the sale entry of stock investment.
Date | Account Titles and Description | Post Ref. | Debit ($) | Credit ($) | |
2017 | |||||
January | 20 | Cash | 77,000 | ||
Gain on Sale of Stock Investments | 3,500 (1) | ||||
Investment in Incorporation B Common Stock | 73,500 | ||||
(To record the sale of Incorporation B common stock) |
Table (1)
Working Note:
Calculate the realized gain (loss) on sale of stock.
Description:
- Cash is an asset account. The amount has increased because the asset is disposed and cash is received; therefore, debit Cash account with $77,000.
- Gain on Sale of Stock Investments is an equity account. Since gain has occurred from disposal, the Equity is increased; therefore, credit Gain on Sale of Stock Investments account with $3,500.
- Investment in Incorporation B Common Stock is an asset account. The amount has decreased because the asset is disposed; therefore, credit Investment in Incorporation B Common Stock account with $73,500.
Record the purchase entry of stock investments.
Date | Accounts and Description | Post Ref. | Debit ($) | Credit ($) | |
2017 | |||||
January | 28 | Investment in Corporation PW Common Stock | 31,200 (2) | ||
Cash | 31,200 | ||||
(To record the purchase of stock of Corporation PW) |
Table (2)
Working Note:
Compute amount of cash paid to acquire Corporation PW stock.
Description:
- Investment in Corporation PW Common Stock is an asset account. The amount has increased due to purchase of stock investment; therefore, debit Investment in Corporation PW Common Stock account with $31,200.
- Cash is an asset account. The amount has decreased because the stock investment is purchased for cash; therefore, credit Cash account with $31,200.
Record the receipt of dividend on stock investment.
Date | Accounts and Description | Post Ref. | Debit ($) | Credit ($) | |
2017 | |||||
January | 30 | Cash | 1,500 | ||
Dividend Revenue | 1,500 (3) | ||||
(To record receipt of dividend on Corporation M’s common stock) |
Table (3)
Working Note:
Compute amount of dividend received on Corporation M’s stock.
Description:
- Cash is an asset account. The amount has increased because interest is received; therefore, debit Cash account with $1,500.
- Dividend Revenue is a revenue account. Revenue increases
stockholders’ equity account. Therefore, credit Dividend Revenue account with $1,500.
Record the receipt of dividend on stock investment.
Date | Accounts and Description | Post Ref. | Debit ($) | Credit ($) | |
2017 | |||||
February | 8 | Cash | 320 | ||
Dividend Revenue | 320 (4) | ||||
(To record receipt of dividend on Corporation PT’s preferred stock) |
Table (4)
Working Note:
Compute amount of dividend received on Corporation PT’s stock.
Description:
- Cash is an asset account. The amount has increased because interest is received; therefore, debit Cash account with $320.
- Dividend Revenue is a revenue account. Revenue increases stockholders’ equity account. Therefore, credit Dividend Revenue account with $320.
Record the sale entry of stock investments.
Date | Account Titles and Description | Post Ref. | Debit ($) | Credit ($) | |
2017 | |||||
February | 18 | Cash | 28,000 | ||
Loss on Sale of Stock Investments | 5,600 (5) | ||||
Investment in Corporation PT- Preferred Stock | 33,600 | ||||
(To record the sale of Corporation PT preferred stock) |
Table (5)
Working Note:
Calculate the realized gain (loss) on sale of stock.
Description:
- Cash is an asset account. The amount has increased because the asset is disposed and cash is received; therefore, debit Cash account with $28,000.
- Loss on Sale of Stock Investments is an equity account. Since loss has occurred from disposal, the Equity is decreased; therefore, debit Loss on Sale of Stock Investments account with $5,600.
- Investment in Corporation PT Preferred Stock is an asset account. The amount has decreased because the asset is disposed; therefore, credit Investment in Corporation PT Preferred Stock account with $33,600.
Record the receipt of dividend on stock investment.
Date | Accounts and Description | Post Ref. | Debit ($) | Credit ($) | |
2017 | |||||
July | 30 | Cash | 1,320 | ||
Dividend Revenue | 1,320 (6) | ||||
(To record receipt of dividend on Corporation M’s common stock) |
Table (6)
Working Note:
Compute amount of dividend received on Corporation M’s stock.
Description:
- Cash is an asset account. The amount has increased because interest is received; therefore, debit Cash account with $1,320.
- Dividend Revenue is a revenue account. Revenue increases stockholders’ equity account. Therefore, credit Dividend Revenue account with $1,320.
Record the purchase entry of stock investments.
Date | Accounts and Description | Post Ref. | Debit ($) | Credit ($) | |
2017 | |||||
September | 6 | Investment in Corporation PW Common Stock | 49,200 (7) | ||
Cash | 49,200 | ||||
(To record the purchase of common stock of Corporation PW) |
Table (7)
Working Note:
Compute amount of cash paid to acquire Corporation PW stock.
Description:
- Investment in Corporation PW Common Stock is an asset account. The amount has increased due to purchase of stock investment; therefore, debit Investment in Corporation PW Common Stock account with $49,200.
- Cash is an asset account. The amount has decreased because the stock investment is purchased for cash; therefore, credit Cash account with $49,200.
Record the receipt of dividend on stock investment.
Date | Accounts and Description | Post Ref. | Debit ($) | Credit ($) | |
2017 | |||||
December | 1 | Cash | 1,500 | ||
Dividend Revenue | 1,500 (8) | ||||
(To record receipt of dividend on Corporation PW’s common stock) |
Table (8)
Working Note:
Compute amount of dividend received on Corporation PW’s stock.
Description:
- Cash is an asset account. The amount has increased because interest is received; therefore, debit Cash account with $1,500.
- Dividend Revenue is a revenue account. Revenue increases stockholders’ equity account. Therefore, credit Dividend Revenue account with $1,500.
Prepare T-accounts of stock investment accounts from the above transactions recorded.
Investment in Incorporation B Account
Investment in Incorporation B | ||||||
Date | Details | Debit ($) | Date | Details | Credit ($) | |
December 31 | Cash | 73,500 | January 20 | Cash | 73,500 | |
Balance | $0 |
Table (9)
Investments in Corporation M Account
Investment in Corporation M | ||||||
Date | Details | Debit ($) | Date | Details | Credit ($) | |
January 28 | Cash | 84,000 |
Table (10)
Investments in Corporation PW Account
Investment in Corporation PW | ||||||
Date | Details | Debit ($) | Date | Details | Credit ($) | |
January 28 | Cash | 31,200 | ||||
September 6 | Cash | 49,200 | ||||
Balance | 80,400 |
Table (11)
Investment in Corporation PT Account
Investment in Corporation PT | ||||||
Date | Details | Debit ($) | Date | Details | Credit ($) | |
December 31 | Cash | 33,600 | February 18 | Cash | 28,000 | |
February 18 | Loss on sale of stock investment | 5,600 | ||||
Balance | $0 |
Table (12)
(b)
To Record: The
(b)
Explanation of Solution
Record the unrealized loss on available-for-sale securities.
Date | Accounts and Description | Post Ref. | Debit ($) | Credit ($) | |
2017 | |||||
December | 31 | Unrealized Gain or Loss–Equity | 9,400 (9) | ||
Fair Value Adjustment – Available-for-sale | 9,400 | ||||
(To record unrealized loss on available-for-sale securities) |
Table (13)
Description:
- Unrealized Gain or Loss–Equity is an adjustment account to report the investment at fair market value. Since loss has occurred while adjusting; therefore, debit Unrealized Gain or Loss–Equity account with $9,400.
- Fair Value Adjustment–Available-for-Sale is a contra-asset account. The account shows a credit balance since the market price has decreased (loss); therefore, credit Fair Value Adjustment–Available-for-Sale with $9,400.
Working Note:
Compute the unrealized gain (loss) from available-for-sale securities as on December 31.
Investment | Fair Value ($) | Cost ($) | Unrealized Gain ($) |
(A) | (B) | (C) = (A) – (B) | |
Corporation M |
78,000
|
84,000
| (6,000) |
Corporation PW |
30,800
|
31,200
| (400) |
Corporation PW |
46,200
|
49,200
| (3,000) |
Total | 155,000 | 164,400 | (9,400) |
(9)
Table (14)
(c)
To Prepare: The balance sheet presentation of investments for Company K.
(c)
Explanation of Solution
Prepare the balance sheet for Company K.
Company K | |
Balance Sheet (Partial) | |
December 31, 2017 | |
Particular | Amount ($) |
Investments | |
Investment in stock of less than 20% owned in Corporation M, at fair value | 78,000 |
Investment in stock of less than 20% owned in Corporation PW, at fair value. | 77,000 |
Stockholders’ Equity | |
Accumulated other comprehensive loss | (9,400) |
Table (15)
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Chapter AH Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.arrow_forwardSelected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)arrow_forwardTama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.arrow_forward
- Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.arrow_forwardRaun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. 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- Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?arrow_forwardDuring 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossarrow_forwardMonona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.arrow_forward
- Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.arrow_forwardOn January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.arrow_forwardStatement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Haley engaged in the following transactions involving its equity accounts: Sold 5,000 shares of common stock for $19 per share. Sold 1.200 shares of 12%, $50 par preferred stock at $75 per share. Declared and paid cash dividends of $22,000. Repurchased 1,000 shares of treasury stock (common) for $24 per share. Sold 300 of the treasury shares for $26 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2020.arrow_forward
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