Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CALCULATOR FULL SCREEN PRINTER VERSION 1BACK Nash Company was formed on July 1, 2015. It was authorized to issue 296,200 shares of $10 par value

image text in transcribed
image text in transcribed
image text in transcribed
CALCULATOR FULL SCREEN PRINTER VERSION 1BACK Nash Company was formed on July 1, 2015. It was authorized to issue 296,200 shares of $10 par value common stock and 104,100 shares of 7% $25 par value, cumulative and nonparticipating preferred stock. Nash Company has a July 1-June 30 fiscal year. The following information relates to the stockholders' equity accounts of Nash Company. Common Stock Prior to the 2017-2018 fiscal year, Nash Company had 114,200 shares of outstanding common stock issued as follows. 89,000 shares were issued for cash on July 1, 2015, at $31 per share. 1. 2. On July 24, 2015, 5,000 shares were exchanged for a plot of land which cost the seller $71,800 in 2009 and had an estimated fair value of $211,200 on July 24, 2015. 3. 20,200 shares were issued on March 1, 2016, for $41 per share. During the 2017-2018 fiscal year, the following transactions regarding common stock took place. November 30, 2017 Nash purchased 2,100 shares of its own stock on the open market at $42 per share. Nash uses the cost method for treasury stock. Nash declared a 5% stock dividend for stockholders of record on January 15, 2018, to be issued on January 31, 2018. Nash was having a liquidity problem and could not afford a cash dividend at the time. Nash's common stock was selling at $48 per share on December 15, 2017. December 15, 2017 June 20, 2018 Nash sold 540 shares of its own common stock that it had purchased on November 30, 2017, for $25,000. Preferred Stock Nash issued 41.500 shares of preferred stock at $47 per share on July 1, 2016. Cash Dividends Nash has followed a schedule of declaring cash ividends in December and June, with payment being made to stockholdere of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2018, are shown below. Declaration Date Common Stock Preferred Stock 12/15/16 $0.30 per share $1 per share 6/15/17 $0.30 per share $1 per share FULL SCREN CALCULATOR NEXT PRINTER VERSaoN BACK Cash Dividends Nash has followed a schedule of dedlaring cash dividends in December and June, with payment being made to stodkholders of record in the following month, The cash dividends which have been declared since inception of the company through June 30, 2018, are shown below. Declaration Common Stock Preferred Stock Date $1 per share 12/15/16 $0.30 per share $1 per share $1 per share 6/15/17 $0.30 per share 12/15/17 No cash dividends were declared during June 2018 due to the company's liquidity problems. Retained Earnings As of June 30, 2017, Nash's retained eamings account had a balance of $666,300. For the fiscal year ending June 30, 2018, Nash reported net income of $39,000. Prepare the stockholders' equity section of the balance sheet, for Nash Company as of June 30, 2018, as it should appear in its annual report to the shareholders. (Enter account name only and do not provide descriptive information.) NASH COMPANY Stockholders' Equity

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

Step: 3

blur-text-image

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

Using QuickBooks Online For Accounting 2021

Authors: Glenn Owen

4th Edition

0357442164, 9780357442166

More Books

Students also viewed these Accounting questions

Question

Give two synonyms for book value. AppendixLO1

Answered: 1 week ago