Explanation Stockholders’ Equity Section: It is refers to the section of the balance sheet that shows the available balance stockholders’ equity as on reported date at the end of the financial year. Prepare the stockholders’ equity section of the balance sheet. Stockholders’ equity section Particulars Amount ($) Amount ($) Amount ($) Paid-in Capital: Common Stock, $2 par (100,000 shares authorized, 75,000 shares issued) $150,000 Excess over par $2,250,000 Paid in capital, common stock $2,400,000 From sale of treasury stock $60,000 Total paid-in capital $2,460,000 Retained earnings $10,880,000 Total $13,340,000 Less: Treasury stock (5,000 shares at cost) ($140,000) Total stockholders’ equity $13,200,000 Table (1) The Proforma of the reporting the stockholders’ equity section of the partial balance sheet ...

15th Edition

ISBN: 9781337272124

Author: Carl Warren, James M. Reeve, Jonathan Duchac

Publisher: Cengage Learning

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The sto…

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Chapter 13, Problem 6PEA

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Prepare the stockholders’ equity section of the balance sheet.

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Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet using Method 1 of Exhibit 8. One hundred thousand shares of common stock are authorized, and 5,000 shares have been reacquired.Common Stock, $2 par $ 150,000Paid-In Capital from Sale of Treasury Stock 60,000Paid-In Capital in Excess of Par—Common Stock 2,250,000Retained Earnings 10,880,000Treasury Stock 140,000

Prepare all journal entries and adjusting journal entries necessary to record all of Red Robin’s transactions related to its stockholders’ equity. See information below: Stockholders’ Equity On January 1 of the current year, Red Robin had 441,100 shares of $1 par value common stock issued (i.e., the shares had been issued prior to the current year). They have 1,245,000 shares authorized and 400,200 shares outstanding. Red Robin has had only one stock repurchase transaction in its history. On August 1 of the current year, Red Robin reissued 6,650 shares for$24 per share. On December 1 of the current year, Red Robin reissued 11,700 shares at $12 per share. Red Robin declared dividends of 18 cents per share on the last day of each calendar quarter and paid them on the 5th day of the 1st month of each calendar quarter. For the sake of simplicity, assume the date of record is also the last day of each calendar quarter. Red Robin did not declare any dividends in the prior year.

Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet using Method 1 ofExhibit 8. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. One hundred thousand shares of common stock are authorized, and 5,000 shares have been reacquired. Common Stock, $2 par$ 150,000Paid-In Capital from Sale of Treasury Stock60,000Paid-In Capital in Excess of Par—Common Stock2,250,000Retained Earnings10,880,000Treasury Stock140,000.

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