Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Analytical case (part 2)-prepare stockholders' equity amounts and disclosures for 2023 using transaction information (Note: You should review the solution to Case 8.36, provided by

image text in transcribed Analytical case (part 2)-prepare stockholders' equity amounts and disclosures for 2023 using transaction information (Note: You should review the solution to Case 8.36, provided by your instructor, before attempting to complete this case.) The transactions affecting the stockholders' equity accounts of DeZurik Corp. for the year ended June 30, 2023, are summarized here: 1. 160,000 shares of common stock were issued at $21.25 per share. 2. 40,000 shares of treasury (common) stock were sold for $21 per share. 3. Net income for the year was $1,480 (in thousands). 4. The fiscal 2023 preferred dividends were paid in full. Assume that all 64,000 shares were outstanding throughout the year ended June 30,2023. 5. A cash dividend of $0.30 per share was declared and paid to common stockholders. Assume that transactions 1 and 2 occurred before the dividend was declared. 6. The preferred stock was split 2 for 1 on June 30, 2023. (Note: This transaction had no effect on transaction 4.) Required: a. Calculate the dollar amounts that DeZurik Corp. would report for each stockholders' equity caption on its June 30, 2023, balance sheet after recording the effects of transactions 1-6. Note that total stockholders' equity at June 30, 2023 of \$52,922 (in thousands), is provided as a check figure. (Hint: To determine the Retained Earnings balance, begin with the June 30, 2022, balance of \$14,020 (in thousands) as determined in Case 8.36, and then make adjustments for the effects of transactions 3-5.) b. Indicate how the stockholders' equity caption details for DeZurik Corp. would change for the June 30, 2023, balance sheet, as compared to the disclosures shown in [ Case 8.36 for the 2022 balance sheet. c. What was the average issue price of common stock shown on the June 30,2023 , balance sheet? Analytical case (part 2)-prepare stockholders' equity amounts and disclosures for 2023 using transaction information (Note: You should review the solution to Case 8.36, provided by your instructor, before attempting to complete this case.) The transactions affecting the stockholders' equity accounts of DeZurik Corp. for the year ended June 30, 2023, are summarized here: 1. 160,000 shares of common stock were issued at $21.25 per share. 2. 40,000 shares of treasury (common) stock were sold for $21 per share. 3. Net income for the year was $1,480 (in thousands). 4. The fiscal 2023 preferred dividends were paid in full. Assume that all 64,000 shares were outstanding throughout the year ended June 30,2023. 5. A cash dividend of $0.30 per share was declared and paid to common stockholders. Assume that transactions 1 and 2 occurred before the dividend was declared. 6. The preferred stock was split 2 for 1 on June 30, 2023. (Note: This transaction had no effect on transaction 4.) Required: a. Calculate the dollar amounts that DeZurik Corp. would report for each stockholders' equity caption on its June 30, 2023, balance sheet after recording the effects of transactions 1-6. Note that total stockholders' equity at June 30, 2023 of \$52,922 (in thousands), is provided as a check figure. (Hint: To determine the Retained Earnings balance, begin with the June 30, 2022, balance of \$14,020 (in thousands) as determined in Case 8.36, and then make adjustments for the effects of transactions 3-5.) b. Indicate how the stockholders' equity caption details for DeZurik Corp. would change for the June 30, 2023, balance sheet, as compared to the disclosures shown in [ Case 8.36 for the 2022 balance sheet. c. What was the average issue price of common stock shown on the June 30,2023 , balance sheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: M.E. Thukaram Rao

3rd Edition

8122433820, 978-8122433821

More Books

Students also viewed these Accounting questions

Question

d. What does not occur that could help resolve the problem?

Answered: 1 week ago

Question

Identify and describe each of the major HRD functions

Answered: 1 week ago

Question

Cite some of the contemporary challenges facing HRD professionals

Answered: 1 week ago