00 buy R. Shares held by investors. h. Shares receive priority for future dividends if dividends are not paid in a given year. 1. Shares actually sold. Use the following to answer questions 6-12 TR, Inc., has two classes of stock authorized: $100.00 par preferred and $0.01 par value common. As of the beginning of 2OXD, 5,000 shares of preferred stock and 1,000,000 shares of common stock have been issued. Analyze the following transactions as it relates to the Stockholders' Equity accounts (PS, CS, APIC, RE, TS) and then complete the Statement of Stockholders' Equity before answering the questions on the next page. Affect on Stockholders' Equity Accounts Issue 1,000 additional shares of preferred 1-Mar 4115, ooo 13,00 stock for $115 per share Issue 50,000 additional shares of common 1-Apr stock for $20.00 per share Declare a cash dividend on both common 1-Jun and preferred stock of $0.30 per share to all stockholders of record on June 15. 30-Jun Pay the cash dividend declared on June 1. No effect Repurchase 5,000 shares of common 1-Aug treasury stock for $16 per share Sell 3,000 shares of treasury stock 1-Oct purchased on August 1 for $19 per share 31-Dec Net income for the year was $325,000. $325, ooo \ & ooo, ooo $316,800 -$80, wo 57,000 The beginning balances are shown below. Preferred Stock (PS) $500,000 6100,000 Common Stock (CS) $10,000 soo Additional Paid-in Capital (APIC) $12,580,000 Retained Earnings (RE) $642,500 11,014,500 325,000 Total Treasury Stockholders Stock (TS) Equity $0 $13,732,500 1, 115,000 325,oog (32, 100 80,000 (80,600) (32 pool Beginning balance 20XD Issuance of stock Net income for the year Dividends Purchase of Treasury Sale of Treasury Ending balance 20XD 24 9,000 (57,000) $7,000 1600,000 10,500 113,603,500 $935, 400 $23,000 $15, 117,400 $ Page 10-1 Chapter 10 SOO 6. $ s1,014, sono When the shares were issued on March 1, how much did additional paid in capital increase? August 1st when the shares were repurchased, how much did stockholders' equity decrease? On August 1s when the shares were repurchased, how much did net income decrease? On October 1st when the 3,000 shares were resold, how much did additional paid in capital change (if decrease put "-" in front of the number)? 7. $ 60,000 on 8. $ 80,000 9. $9,000 32,100 on June 11.$_ 935,400.compute 22 5 15,117,4070m Pcompute ) s 10.) $ 1st when the dividend was declared, how much did retained earning decrease? ending retained earnings on December 31st 12) $ Compute ending stockholders' equity on December 31st