Classify stock and prepare shareholders' equity section of balance sheet. (LO 1, 5) Womack Grove Entertainment Inc.'s

Question:

Classify stock and prepare shareholders' equity section of balance sheet. (LO 1, 5) Womack Grove Entertainment Inc.'s corporate charter allows it to sell 300,000 shares of \(\$ 2\) par value common stock. To date, the company has issued 100,000 shares for a total of \(\$ 275,000\). Last month, Womack Grove repurchased 500 shares for \(\$ 3.75\) per share.

a. If Womack Grove were to prepare a balance sheet, how many shares would it show as authorized, issued, and outstanding?

b. In addition to the shareholders' equity given above, Womack Grove also has \(\$ 415,000\) in retained earnings. Using this information, prepare the shareholders' equity section of Womack Grove Entertainment Inc.'s balance sheet.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 9780131492011

1st Edition

Authors: Jane L. Reimers

Question Posted: