Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the beginning of 2015, Tyler Corporation had the following stockholders' equity balances in its general ledger: Common Stock, $10 Par Value $2,500,000 Paid-In Capital

image text in transcribed

image text in transcribed
At the beginning of 2015, Tyler Corporation had the following stockholders' equity balances in its general ledger: Common Stock, $10 Par Value $2,500,000 Paid-In Capital in Excess of Par 1,500,000 Paid-In Capital, Treasury Stock 450,000 Paid-In Capital, Stock Options 200,000 Retained Earnings 5,000,000 Treasury Stock (15,000 shares) [300,000] Total Stockholders' Equity $9,350,000 The paid-in capital from stock options relates to options granted on 1i'1f07 to the CEO as incentive compensation. As of 1i'1I15, the remaining expected benefit period is four years; expense has been and will be recorded evenly over the benefit period. The following events were among the many occurring in 2015: a. January 2: Purchased 5,000 shares of its common stock for $16 per share. Taylor uses the cost method of accounting for treasury stock transactions. February 1: Declared and distributed a 1% stock dividend on common stock outstanding when the market price of the stock was $24 per share. April 1: Issued 20,000 shares of $50 par, noncumulative, convertible 6% preferred stock for $60 per share, where one share of preferred stock is convertible into three shares of common stock. July 1: 2,000 shares of treasury stock that had been purchased in a prior year for $21 per share were re-issued for $22 per share. August 1: Holders of 8,000 shares of the preferred stock converted their shares into common stock when the market value of the common stock was $22 per share. Taylor uses the book value method of accounting for conversions. October 1: Declared and paid a cash dividend of $2 per share on the outstanding common stock. November 1: Corrected an error that was made several years ago, when land that had been purchased for $100,000 was inadvertently expensed. December 1: Declared and distributed a property dividend of land to preferred shareholders. The land had a fair value of $75,000 and a carrying value of $60,000. December 31: Recorded 2017 compensation expense related to the stock options. The 2015 Final Net Income, including the effects of any net income items listed above (and the 2015 tax effects on net income items), was $1,000,000. There were 500,000 shares authorized for both preferred and common stock

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

Accounting Principles

Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt

IFRS global edition

1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617

More Books

Students also viewed these Accounting questions

Question

Describe Hartleys seven varieties of pleasure.

Answered: 1 week ago

Question

5. Give some examples of hidden knowledge.

Answered: 1 week ago