Burk Corp. completed the following transactions in 2018, the first year of operation: 1. Issued 30,000 shares
Question:
Burk Corp. completed the following transactions in 2018, the first year of operation:
1. Issued 30,000 shares of $10 par common stock for $15 per share.
2. Issued 6,000 shares of $100 par, 5 percent, preferred stock at $101 per share.
3. Paid the annual cash dividend to preferred shareholders.
4. Issued a 5 percent stock dividend on the common stock. The market value at the dividend declaration date was $19 per share.
5. Later that year, issued a 2-for-1 split on the 31,500 shares of outstanding common stock.
6. Earned $165,000 of cash revenues and paid $98,000 of cash operating expenses.
Required
a. Record each of these events in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element is not affected by the event.
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b. Prepare the stockholders' equity section of the balance sheet at the end of 2018.
Common StockCommon 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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... 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...
Step by Step Answer:
a NC Net Change in Cash Burk Corp Statements Model For 2018 Balance Sheet Income Statement ...View the full answer
Survey of Accounting
ISBN: 978-1259631122
5th edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay
