Question
Blue Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were
Blue Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were included in stockholders equity.
Preferred Stock, 160,200 shares $ 3,204,000
Common Stock, 1,983,000 shares 9,915,000
Paid-in Capital in Excess of ParPreferred Stock 200,000
Paid-in Capital in Excess of ParCommon Stock 26,495,000
Retained Earnings 4,431,000
The following transactions affected stockholders equity during 2018.
Jan. 1 29,300 shares of preferred stock issued at $24 per share.
Feb. 1 48,800 shares of common stock issued at $21 per share.
June 1 2-for-1 stock split (par value reduced to $2.50).
July 1 28,100 shares of common treasury stock purchased at $11 per share. Blue uses the cost method.
Sept. 15 10,200 shares of treasury stock reissued at $12 per share.
Dec. 31 The preferred dividend is declared, and a common dividend of 55 per share is declared.
Dec. 31 Net income is $2,103,000.
-Prepare the stockholders equity section for Blue Company at December 31, 2018.
December 31, 2018 Capital Stock Preferred Stock 3204000 Common Stock 9915000 Total Capital Stock 13119000 Additional Paid-in Capital Paid-in Capital in Excess of Par - Preferred Stock 200000 Paid-in Capital in Excess of Par - Common Stock 26495000 Paid-in Capital from Treasury Stock 6228000 32923000 Total Paid-in Capital 46042000 Retained Earnings 4431000 Total Paid-in Capital and Retained Earnings 41611000 Less (19531500) Treasury Stock 33044500 Total Stockholders' EquityStep by Step Solution
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