Quality Corporation reports the following information in its January 1, 2014, balance sheet:-- Stockholders' Equity --Common stock, $12 par value, 48,000 shares authorized, 29,500 outstandingShares issued and outstanding: $354,000Paid-in capital in excess of par value: 113,300Retained earnings: 77,400Total stockholders' equity: $544,700During 2014, Quality was affected by the following accounting events:1. Purchased 1,500 shares of treasury stock at $20 per share.2. Reissued 900 shares of treasury stock at $22 per share.3. Earned $70,900 of cash revenues.4. Paid $37,850 of cash operating expenses.Prepare stockholder's equity section of the year-end balance sheet.

Step 1: Definition of Stockholder's Equity:Stockholder's equity is the amount of capital given to by…

Answered: Quality Corporation reports the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At the end of the accounting year, December 31, 2007, Emme's records reflected the following: (Compute for the total stockholders' equity) - Common stock, no par, 5,000 shares issued, issue price P12 per share - Preferred stock, par P5, 1,000 shares issued and outstanding; issue price, P15 per share - Unrealized gain, available-for-sale securities, P18,000 - Retained earnings, P20,000 (unappropriated) - Preferred stock, par P5, subscribed (not yet issued), 400 shares; subscription price P20 per share -Subscriptions receivable on the preferred stock P5,000 to be collected on January 1, 2008 -Reserve for bond sinking fun, P15,000 -Treasury stock, common stock, 1,000 shares, cost P10 per share
On June 30, 2017, Martin Brothers, Inc. showed the following data on the equity section of their balance sheet: Stockholders' Equity Common Stock, $1 par; 197,000 shares authorized, 146,000 shares issued and outstanding $146,000 Paid-In Capital in Excess of Par—Common $271,000 Retained Earnings 941,000 Total Stockholder's Equity $1,358,000 On July 1, 2017, the company declared and distributed a 8% stock dividend. The market value of the stock at that time was $17 per share. Following this transaction, what is the balance of Paid-In Capital in Excess of Par—Common?
On January 1, 2014, Salalima Company had Common Stock of 800,000 authorizedshares with P20 par value. The Stockholders' Equity accounts on January 1, 2014 had the following balances:Common Stock - P2,000,000Additional Paid-in Capital - P600,000Retained Earnings - P1,200,000Transactions during the year and other information relating to shareholders' equityaccounts were:1. On January 5, Salalima issued at P54 per share, 100,000 preferred stock with P50 par value and 9% cumulative. Salalima had 400,000 authorized preferred shares.2. On February 1, Salalima reacquired 10,000 common shares at P32 per share.3. On April 30, Salalima sold 25,000 common stock at P34 per share.4. On June 18, Salalima declared a cash dividend of P2 per common stock, payableon July 12, to shareholders of record on July 1.5. On November 19, Salalima sold 5,000 shares of treasury for P42 per share.6. On December 15, Salalima declared declared a yearly cash dividend on preferred stock, payable on January 14, 2015 on…
Matchlessly, Inc., was organized in 2017. At December 31, 2017, the company’sBalance sheet reported the following stockholders’ equity:Matchlessly, Inc.Stockholders’ EquityDecember 31,2017Paid-in CapitalPreferred stock, 7%, $40 par, 200,000 shares authorized, none issued $ 0Common stock, $1 par, 600,000 shares authorized, 61,000 shares issuedand outstanding61,000Paid-in capital in excess of par—common 41,000Total paid-in capital 102,000Retained earnings 29,000Total Stockholders’ equity $131,000Note: Total paid in capital = 61,000 + 41,000Total stockholders’ equity = 102,000 + 29,000Requirements:1. During 2018, the company completed the following selected transactions and you arerequired to journalize each transaction. Explanations are NOT required.a. Issued for cash 1,300 shares of preferred stock at par value.b. Issued for cash 2,400 shares of common stock at a price of $5 per share.c. Net Loss for the year was $79,000, and the company declared no dividends.Make the closing entry for…
The shareholders' equity section of Time Company's comparative balance sheets for the years ended December 31, 2018 and 2017, reported the following data: ($ in millions) 2018 2017 Common stock, $1 par per share $ 612 $ 600 Paid-in capital-excess of par 348 300 Retained earnings 628 600 During 2018, Time declared and paid cash dividends of $100 million. The company also declared and issued a stock dividend. No other changes occurred in shares outstanding during 2018. What was Time's net income for 2018?
On January 1, 2022, Whispering Winds Corp. had the following stockholders' equity balances. Common Stock (583,000 shares issued) Paid-in Capital in Excess of Par-Common Stock Common Stock Dividends Distributable Retained Earnings 1. During 2022, the following transactions and events occurred. 2. 3. 4. 5. $1,749,000 6. 477,000 174,900 577,000 Issued 58,300 shares of $3 par value common stock as a result of 10% stock dividend declared on December 15, 2021. Issued 30,500 shares of common stock for cash at $5 per share. Purchased 28,000 shares of common stock for the treasury at $6 per share. Declared and paid a cash dividend of $112,000. Sold 7,000 shares of treasury stock for cash at $6 per share. Earned net income of $342,000. Prepare a stockholders' equity statement for the year. (If an amount reduces the account balance then enter with negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Crane Corporation had the following shareholders' equity on December 31, 2022: Common shares, 1,000,000 shares authorized, issued and outstanding Contributed surplus (Common Shares) Retained earnings Total shareholders' equity The following transactions occurred, in the order given, during 2023: (a) (b) (c) (d) (e) (a) (b) No. Accounts Titles and Explanation (c) (d) Prepare the journal entries to record the above transactions for Crane Corporation for 2023. (Round average share price to 2 decimal places for your calculations, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (e) 1,000 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the company at a price of $8 per share.…
The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2015: Shareholders’ Equity ($ in millions) Common stock, 240 million shares at $1 par $ 240 Paid-in capital—excess of par 1,680 Paid-in capital—share repurchase 1 Retained earnings 1,100 Required: 1. During 2016, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. a. On February 5, 2016, TNL Systems purchased 6 million shares at $10 per share. b. On July 9, 2016, the corporation sold 2 million shares at $12 per share. c. On November 14, 2018, the corporation sold 2 million shares at $7 per share. 2. Prepare the shareholders’ equity section of TNL Systems’ balance sheet at December 31, 2018, comparing the two approaches. Assume all net income earned in 2016–2018 was…
The records of Hoffman Company reflected the following balances in the shareholders' equity accounts at December 31, 2017: Common shares, no par value, 48,000 shares outstanding Preferred shares, $2, no par value, 7,600 shares outstanding Retained earnings $960,000 159,000 253,000 On September 1, 2018, the board of directors was considering the distribution of a $73,280 cash dividend. No dividends were paid during 2013 and 2017. You have been asked to determine dividend amounts under two independent assumptions (show computations): a. The preferred shares are non-cumulative. b. The preferred shares are cumulative. Required: 1. Determine the total amounts that would be paid to the preferred shareholders and to the common shareholders under the two independent assumptions. (Round "Per share" to 2 decimal places.) Preferred Common a. Noncumulative: Total 15,200 s 58,080 Per share 2.00 S 1.21 b. Cumulative:
The records of Hoffman Company reflected the following balances in the stockholders’ equity accounts at December 31, 2018: Common stock, par $12 per share, 43,500 shares outstanding. Preferred stock, 8 percent, par $17 per share, 6,610 shares outstanding. Retained earnings, $227,000. On January 1, 2019, the board of directors was considering the distribution of a $62,700 cash dividend. No dividends were paid during 2017 and 2018. Required: Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders under two independent assumptions The preferred stock is noncumulative. The preferred stock is cumulative.
At December 31, 2016, the records of Hoffman Company reflected the following balances in the shareholders’ equity accounts: Common shares: par $12 per share; 55,000 shares outstandingPreferred shares: 9 percent; par $10 per share; 8,250 shares outstandingRetained earnings: $227,500 On January 1, 2017, the board of directors was considering the distribution of a $72,500 cash dividend. No dividends were paid during 2015 and 2016.Required:Determine the total and per-share amounts that would be paid to the common shareholders and to the preferred shareholders under two independent assumptions:1-a. The preferred shares are non-cumulative. (Round your per share amount to 2 decimal places.) 1-b. The preferred shares are cumulative. (Round your per share amount to 2 decimal places.) 2. Why were the dividends per common share less for the second assumption?multiple choice The total dividend amount and dividends per share of common shares were less under the second assumption because…
Tower Corp. had the following stock outstanding and Retained Earnings at December 31, 2018: $ 304,000 68,000 288,000 Common Stock (par $8; outstanding, 38,000 shares) Preferred Stock, 7% (par $10; outstanding, 6,800 shares) Retained Earnings On December 31, 2018, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2016 or 2017, and none have been declared yet in 2018. Three independent cases are assumed: The preferred stock is noncumulative; the total amount of 2018 dividends would be $13,400. The preferred stock is cumulative; the total amount of 2018 dividends would be $14,280. Dividends were not in arrears prior to 2016. Same as Case B, except the total dividends are $74,000. Case A: Case B: Case C: Required: 1-a. Compute the amount of 2018 dividends, in total that would be payable to each class of stockholders if dividends were declared as described in each case. TIP: Preferred…

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