Kenny Co. began operations on January 1, 2010, by issuing at $15 per share one half of
Question:
Kenny Co. began operations on January 1, 2010, by issuing at $15 per share one half of the 950,000 shares of $1 par value common stock that had been authorized for sale. In addition, Kenny has 500,000 shares of $5 par value, 6% preferred shares authorized. During 2010, Kenny had $1,025,000 of net income and declared $237,500 of dividends.
During 2011, Kenny had the following transactions:
Jan. 10 Issued an additional 100,000 shares of common stock for $17 per share.
Apr. 1 Issued 150,000 shares of the preferred stock for $8 per share.
July 19 Authorized the purchase of a custom-made machine to be delivered in January 2012. Kenny restricted $295,000 of retained earnings for the purchase of the machine.
Oct. 23 Sold an additional 50,000 shares of the preferred stock for $9 per share.
Dec. 31 Reported $1,215,000 of net income and declared a dividend of $635,000 to stockholders of record on January 15, 2012, to be paid on February 1, 2012.
1. Prepare the Stockholders’ Equity section of Kenny’s balance sheet for
December 31, 2010.
2. Prepare a statement of changes in stockholders’ equity for 2011.
3. Prepare the Stockholders’ Equity section of Kenny’s balance sheet for December 31, 2011.
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... 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... 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,...
Step by Step Answer:
1 Kenny Co Stockholders Equity December 31 2010 Common stock 1 par 950000 shares authorized 475000 shares issued and outstanding 475000 Paidin capital ...View the full answer
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
