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Can you help me figure this out? Problem 15-12 Stellar Company was formed on July 1, 2015. It was authorized to issue 302,500 shares of
Can you help me figure this out?
Problem 15-12 Stellar Company was formed on July 1, 2015. It was authorized to issue 302,500 shares of $10 par value common stock and 100,600 shares of 7% $25 par value, cumulative and nonparticipating preferred stock. Stellar Company has a July 1-June 30 fiscal year. The following information relates to the stockholders' equity accounts of Stellar Company Common Stock Prior to the 2017-2018 fiscal year, Stellar Company had 110,400 shares of outstanding common stock issued as follows. 1. 89,000 shares were issued for cash on July 1, 2015, at $34 per share. 2. On July 24, 2015, 5,000 shares were exchanged for a plot of land which cost the seller $66,500 in 2009 and had an estimated fair value of $216,800 on July 24, 2015 3, 16,400 shares were issued on March 1, 2016, for $45 per share During the 2017-2018 fiscal year, the following transactions regarding common stock took place November 30, 2017 Stellar purchased 1,900 shares of its own stock on the open market at $35 per share. Stellar uses the cost method for treasury stock. December 15, 2017 Stellar declared a 5% stock dividend for stockholders of record on January 15, 2018, to be issued on January 31, 2018. Stellar was having a liquidity problem and could not afford a cash dividend at the time. Stellar's common stock was selling at $50 per share on December 15, 2017. Stellar sold 550 shares of its own common stock that it had purchased on November 30, 2017, for $19,800 June 20, 2018 Preferred Stock Stellar issued 40,400 shares of preferred stock at $45 per share on July 1, 2016 Cash Dividends Stellar has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders 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. Common Preferred 12/15/16 $0.30 per share $1 per share $0.30 per share $1 per share 12/15/17 $1 per share No cash dividends were declared during June 2018 due to the company's liquidity problems. Retained Earnings As of June 30, 2017, Stellar's retained earnings account had a balance of $668,400. For the fiscal year ending June 30, 2018, Stellar reported net income of $39,500Step by Step Solution
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