Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company had the following equity account balances on January 1. January 1 balancesPreferred stock, $35 par value, 11% stated rate, 80,000 shares authorized, 15,200
A company had the following equity account balances on January 1.
January 1 balancesPreferred stock, $35 par value, 11% stated rate, 80,000 shares authorized, 15,200 shares issued and outstanding$532,000Paid-in capital in excess of par preferred stock$170,000Common stock, $4 par value, 250,000 shares authorized, 55,000 shares issued and outstanding$220,000Paid-in capital in excess of par common stock$317,000Retained earnings$320,000
During the year, the following equity transactions occurred.
Transactions during the yearJanuary 21Issued 14,000 shares of common stock for $11 per share.March 10Purchased 7,700 shares of its own common stock for $10 per share.June 26Sold one-half of treasury shares acquired March 10 for $12 per share.September 8Issued 2,600 shares of preferred stock for $48 per share.November 2Sold 1,540 of the treasury shares acquired March 10 for $16 per share.December 31Reported net income for the year of $158,000.Complete the following stockholders' equity section of the balance sheet as of December 31 . \begin{tabular}{|l|l|} \hline \multicolumn{2}{|l|}{ December 31 balances } \\ \hline Preferred stock & [ Select ] \\ \hline Paid-incapitalinexcessofpar-preferredstock & [ Select ] \\ \hline Common stock & [ Select ] \\ \hline Paid-incapitalinexcessofpar-commonstock & [ Select ] \\ \hline Retained earnings & \\ \hline Treasury stock \end{tabular} Complete the following stockholders' equity section of the balance sheet as of December 31 . \begin{tabular}{|l|l|} \hline \multicolumn{2}{|l|}{ December 31 balances } \\ \hline Preferred stock & [ Select ] \\ \hline Paid-incapitalinexcessofpar-preferredstock & [ Select ] \\ \hline Common stock & [ Select ] \\ \hline Paid-incapitalinexcessofpar-commonstock & [ Select ] \\ \hline Retained earnings & \\ \hline Treasury stock \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started