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Apply GAAP principles exercised in course: * Taccounts NOT required, but do help Monsters, Inc. reported the following amounts in the stockholders' equity section of
Apply GAAP principles exercised in course:
* Taccounts NOT required, but do help
Monsters, Inc. reported the following amounts in the stockholders' equity section of its December 31, 2011 balance sheet. Preferred Stock- 4%, $100 par, 25, 000 shares authorized, 3, 500 shares issued $ 350.000 Additional Paid -In Capital-Preferred Stock 170, 000 Common Stock-$10 par, 100, 000 shares authorized, 37, 500 shares issued 375, 000 Additional Paid-In Capital - Common Stock 72, 000 Retained Earnings 577, 700 Total Stockholders' Equity $1, 544, 700 During 2012, Monsters made the following transactions: Paid the annual 2011 $4.00 per share cash dividend on preferred stock and a $1.25 per share cash dividend on common stock. The dividend had been declared on December 27, 2011. It was paid on January 7, 2012. Purchased 4, 600 shares of its own outstanding common stock for $13.50 per share on March 1, 2012. Monsters uses the cost method when accounting for treasury shares. Reissued 3, 000 treasury shares on June 1, 2012 for land valued at $43, 000. Issued 200 shares of preferred stock at $120 per share on July 1, 2012. Declared a 20% stock dividend (not cash) on the outstanding common stock on September 1, 2012 when the stock was selling at $14.00 per share. Issued the stock dividend on September 15, 2012. Declared the annual $4.00 per share cash dividend on preferred stock and a $1.25 per share cash dividend on common stock on December 23, 2012. The dividends are payable in 2013. Sold 1, 000 treasury shares on December 30, 2012 for $12.00 per share. | Appropriated $91, 000 of retained earnings for debt service on December 31, 2012. A. Record ALL journal entries for EACH transaction listed above B. Prepare 2012 stockholder's equity section (NOT changes) of balance sheet assuming $605, 000 after tax NL T-Accounts may help!!! C. Calculate 2012 ending BASIC EPSStep by Step Solution
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