Collinswood Companys comparative balance sheet at January 31, 2019, and 2018, reports the following (in millions): Requirements
Question:
Collinswood Company’s comparative balance sheet at January 31, 2019, and 2018, reports the following (in millions):
Requirements
The following are three situations related to Collinswood Company’s issuance of stock and declaration and payment of dividends during the year ended January 31, 2019. For each situation, use the accounting equation and what you know from the chapter about stockholders’ equity, common stock, and retained earnings to calculate the amount of Collinswood’s net income or net loss during the year ended January 31, 2019.
1. Collinswood issued $11 million of stock and declared no dividends.
2. Collinswood issued no stock but declared dividends of $20 million.
3. Collinswood issued $15 million of stock and declared dividends of $75 million.
Balance SheetBalance 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...
Step by Step Answer:
Total stockholders equity January 31 2018 47 19 Add I...View the full answer
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
