Tracy Regis incorporated Northstar Corp. on May 1, 2014. They are authorized to issue an unlimited...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tracy Regis incorporated Northstar Corp. on May 1, 2014. They are authorized to issue an unlimited number of common shares and 10,000, $4.00 non-cumulative preferred shares. During May, the following equity transactions occurred: a. Issued 8,000 common shares at $3.90 per share for cash. b. Issued 5,000 preferred shares at $13.30 per share for cash. C. Northstar Corp. reported net income for the month of $63,000, and declared total cash dividends of $28,000 to shareholders of May 31, 2014 payable June 15. 2014. a) Using the information provided above and the following May 31, 2014 selected adjusted account balances prepare the statement of changes in equity for the month ended May 31, 2014 along with the May 31, 2014 classified balance sheet. The list of accounts is incomplete; you will have to add several accounts based on the information provided above. Balance 44,000 (select one) Statement of Changes in Equity Account Accounts Receivable Accumulated Depreciation, Furniture Accumulated Depreciation, Machinery 3,500 (select one) Common Preferred Retained Total Shares Shares Eamings Equity 1,500 Bonds Payable (due September, 2023). Cash Furniture 33,000 68.000 97.000 Interest Payable 21,000 Interest Receivable 9,000 Land Long-Term Notes Payable, Machinery Property Taxes Payable, Supplies 38,000 (select one) 45,000 Balance Sheet 44,000 (select one) 49,000 13,700 b) Use your above answer to answer each of the following questions: What percentage of the total assets are equity financed? What percentage of Northstar Corp. is financed by debt? The common shareholders own what percentage of the total assets? What percentage of the assets are financed by the preferred shareholders? Tracy Regis incorporated Northstar Corp. on May 1, 2014. They are authorized to issue an unlimited number of common shares and 10,000, $4.00 non-cumulative preferred shares. During May, the following equity transactions occurred: a. Issued 8,000 common shares at $3.90 per share for cash. b. Issued 5,000 preferred shares at $13.30 per share for cash. C. Northstar Corp. reported net income for the month of $63,000, and declared total cash dividends of $28,000 to shareholders of May 31, 2014 payable June 15. 2014. a) Using the information provided above and the following May 31, 2014 selected adjusted account balances prepare the statement of changes in equity for the month ended May 31, 2014 along with the May 31, 2014 classified balance sheet. The list of accounts is incomplete; you will have to add several accounts based on the information provided above. Balance 44,000 (select one) Statement of Changes in Equity Account Accounts Receivable Accumulated Depreciation, Furniture Accumulated Depreciation, Machinery 3,500 (select one) Common Preferred Retained Total Shares Shares Eamings Equity 1,500 Bonds Payable (due September, 2023). Cash Furniture 33,000 68.000 97.000 Interest Payable 21,000 Interest Receivable 9,000 Land Long-Term Notes Payable, Machinery Property Taxes Payable, Supplies 38,000 (select one) 45,000 Balance Sheet 44,000 (select one) 49,000 13,700 b) Use your above answer to answer each of the following questions: What percentage of the total assets are equity financed? What percentage of Northstar Corp. is financed by debt? The common shareholders own what percentage of the total assets? What percentage of the assets are financed by the preferred shareholders?
Expert Answer:
Answer rating: 100% (QA)
a Statement of changes in equity It shows any changes which will take place in equity of the company It includes share capital retained earnings divid... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Posted Date:
Students also viewed these accounting questions
-
Abgenix Corp. was authorized to issue an unlimited number of common shares. During January 2014, its first month of operations, the following selected transactions occurred: Required a. Journalize...
-
Cattrall Corporation is authorized to issue an unlimited number of $5 cumulative preferred shares and an unlimited number of common shares. On February 1, 2020, the general ledger contained the...
-
Labopharm Inc. is authorized to issue an unlimited number of common shares and 100,000 shares of $24 non-cumulative preferred. The company completed the following transactions: Required 1. Prepare...
-
Discuss why the length of an OH bond obtained from X-ray diffraction experiments averages 85 pm whereas that obtained in neutron diffraction experiments averages 96 pm. Would you expect to see...
-
An air-ambulance service in Colorado is interested in keeping its helicopter in a central location that would minimize the flight distance to four major ski resorts. An X-Y grid was laid over a map...
-
In the special report "Mousetrap: The Most-Visited Shoe and Apparel E-tailers" (Footwear News, Vol. 58, No. 3, p. 18), we found the following data on the average time, in minutes, spent per user per...
-
Which of the following is the most reliable method for making capital budgeting decisions? a. NPV method b. ARR method c. payback method d. post-audit method
-
In Problems 5-17 and 5-18, three different fore-casts were developed for the demand for fertilizer. These three forecasts are a 3-year moving average, a weighted moving average, and a trend line....
-
Required information [ The following information applies to the questions displayed below. ] On January 1 , 2 0 2 1 , Eagle Company borrows $ 2 0 , 0 0 0 cash by signing a four - year, 7 %...
-
Imagine that you are Magna's new corporate controller and answer the following: 1. Describe Magna's strategy in terms of how it competes for customers. 2. Based on Magna's strategy and the data...
-
Evaluate the integral Note: Use an upper-case "C" for the constant of integration. 6x In(x) dx
-
Read the assigned case vignette and provide a brief submission (you may upload a document OR simply write in the textbox) that includes a diagnosis, application of theory, and suggested treatment....
-
write an human resource management and communication management of opening new coffee shop project.
-
Part 1. Determine the function of the underlined asset in each of the following situations. (2 points each) 1. Shaira uses cash to buy school supplies for her son. 2. After having her dinner, Moira...
-
How can an organization ensure that they are asking the right questions during the market research process?
-
Basket Company specializes in unique baskets. Peak sales for one of their products, the Easter basket, occur in March every year. The company has estimated the following sales for the first five...
-
if a system does 200kj of work
-
The Higher the time period of the financial security the higher the. ............... risk. O a. Maturity O b. Default and Maturity Oc. Default O d. Liquidity
-
Liam and Katano formed a partnership by investing $95,000 and $105,000 respectively. They agreed to share income based on an allocation to Liam of an annual salary allowance of $150,000, interest...
-
Gunnar & Dietar Consulting showed the following partners equity at August 31, 2014: Gunnar Schwiede, Capital................................................................................... $...
-
The cost and fair value of non-strategic investments of IP Corporation on December 31, 2014, and December 31, 2015, are as follows: Required 1. Prepare the valuation adjustment at December 31, 2014,...
-
How is cost accounting related to financial ac- counting?
-
For a manufacturer, what does the planning process involve and how are cost accounting data used in planning?
-
How are cost accounting data used by manage- ment?
Study smarter with the SolutionInn App