Question
Advanced Computer Systems reported the following shareholders equity section as of the beginning of the current year: Description Reading order description of t-table Stockholders Equity
Advanced Computer Systems reported the following shareholders equity section as of the beginning of the current year:
Description
Reading order description of t-table
Stockholders Equity | |
---|---|
Contributed Capital: | |
?Common Stock, $.50 par value, 850,000 shares authorized, 225,000 shares issued, and 201,375 shares outstanding | $??112,500 |
?Additional Paid-in Capital in Excess of Par Common | ?9,900,000 |
Total Contributed Capital | $ 10,012,500 |
Retained Earnings | $20,346,563 |
Accumulated Other Comprehensive Income (Loss) | (453,800) |
Less: Treasury Stock (23,625 common shares at cost) | ? (945,000) |
Total Stockholders Equity | $28,960,263?? |
Advanced Computer issued 125,000 shares of its $.50 par common stock during the year. The market price of the shares on the date of issue was $51 per share. The company paid $88,000 in underwriting fees to issue the shares. Advanced reported $6,789,000 in net income for the year and declared and paid dividends of $4 per share at year end.
Required
Prepare the entry to record the new stock issue.
Prepare the journal entries required to record the declaration and payment of the cash dividend.
Prepare the stockholders equity section of the balance sheet at the end of the year.
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