Millsaps Corp. completed the following transactions in 2010, the first year of operation. 1. Issued 30,000 shares
Question:
Millsaps Corp. completed the following transactions in 2010, the first year of operation.
1. Issued 30,000 shares of $10 par common stock at par.
2. Issued 2,000 shares of $30 stated value preferred stock at $33 per share.
3. Purchased 1,000 shares of common stock as treasury stock for $12 per share.
4. Declared a 5 percent dividend on preferred stock.
5. Sold 300 shares of treasury stock for $15 per share.
6. Paid the cash dividend on preferred stock that was declared in Event 4.
7. Earned cash service revenue of $75,000 and incurred cash operating expenses of $42,000.
8. Appropriated $6,000 of retained earnings.
Required
a. Organize the transaction in accounts under an accounting equation.
b. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2010.
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...
Step by Step Answer:
a Millsaps Corp Accounting Equation 2010 Event Assets Liab Stockholders Equity Cash Div Pay Pfd Stk ...View the full answer
