Biyama Corp. has two classes of stock: 5%, $100 par value preferred (authorized 10,000 shares) and $0.50

Question:

Biyama Corp. has two classes of stock: 5%, $100 preferred (authorized 10,000 shares) and $0.50 common (authorized 700,000 shares). At the beginning of 2009, the company had issued and outstanding 6,500 share of preferred and 360,000 shares of common. The preferred stock had all been issued at and the had been issued at an average price of $7.80 per share. The company’s Retained Earnings on January 1, 2009 was $738,400.During 2009, Biyama had the following transactions:
• Issued 4,000 shares of in exchange for a building with a list price of $80,000. The had sold on the NYSE the previous day for $18 per share.
• Bought 300 shares of for $21 per share.
• Sold 100 shares of the previously purchased for $23 per share.
• Declared a total cash of $53,800.
• Had net income for 2009 of $121,650.
Required:
(a) Prepare a statement of stockholders’ equity for Biyama Corp. for 2009. The additional paid-in capital for common and treasury stock may be combined.
(b) Determine the amount of cash paid to preferred stockholders and to common stockholders in 2009.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...