Degner Corporation stockholders' equity consisted of the following on ACC2020: CHALLENGE PROBLEM 1 PAGE ary 1, 2019 Stockholders' Equity Paid-in capital Capital stock 6% Preferred stock, 550 par value,cumulative. 50,000 shares authorized, 20,000 shares issued and outstanding Common stock, no par, 5 stated value, 2,000,000 shares authorized, 600,000 shares issued and outstanding Total capital stock Additional paid-in capital In excess of par value-preferred In excess of stated value-common Total paid in capital Retained earnings (Note A) Total stockholders' equity $ 1,000,000 3.000.000 4.000.000 $300,000 600.000 900.000 4,900,000 2.500.000 $.7.400.000 Note A: Preferred dividends are in arrears for 2018. Instructions Using the following information, prepare the Deaner Corporation Stockholders' Equity Statement in good form at December 31, 2019. Use the example provided in Chapter 14 - Learning Objective 4 (Appendix) as a basis to complete your statement. A blank worksheet has been provided for you on the next page. 1/15/19 Issued 80,000 shares of common stock for $15 per share 2/01/19 The Board of Directors declared a cash dividend on preferred and common stock totaling $460,000, payable on March 14, to stockholders of record on February 22 5/20/19 Declared a 10% stock dividend on the common stock payable on June 15, to stockholders of record on May 31. The market value of Intercontinental Corporation's common stock was $18 per share. The number of shares outstanding on this date were 680,000 shares. 7/01/19 An error was discovered. In, 2018 the ending inventory was by understated by $80,000 which caused Cost of Goods Sold on the income statement to be overstated by this amount (Ignore, Income taxes) 8/10/19 Purchased 50,000 shares of Intercontinental Corporation's common stock for $20 per share to be held in the company's treasury. 11/12/19 Sold 20,000 shares of treasury stock for $10 per share. 12/31/19 Determined that Net Income for the year was $2,640,000. Spring 2020 Degner Corporation stockholders' equity consisted of the following on ACC2020: CHALLENGE PROBLEM 1 PAGE ary 1, 2019 Stockholders' Equity Paid-in capital Capital stock 6% Preferred stock, 550 par value,cumulative. 50,000 shares authorized, 20,000 shares issued and outstanding Common stock, no par, 5 stated value, 2,000,000 shares authorized, 600,000 shares issued and outstanding Total capital stock Additional paid-in capital In excess of par value-preferred In excess of stated value-common Total paid in capital Retained earnings (Note A) Total stockholders' equity $ 1,000,000 3.000.000 4.000.000 $300,000 600.000 900.000 4,900,000 2.500.000 $.7.400.000 Note A: Preferred dividends are in arrears for 2018. Instructions Using the following information, prepare the Deaner Corporation Stockholders' Equity Statement in good form at December 31, 2019. Use the example provided in Chapter 14 - Learning Objective 4 (Appendix) as a basis to complete your statement. A blank worksheet has been provided for you on the next page. 1/15/19 Issued 80,000 shares of common stock for $15 per share 2/01/19 The Board of Directors declared a cash dividend on preferred and common stock totaling $460,000, payable on March 14, to stockholders of record on February 22 5/20/19 Declared a 10% stock dividend on the common stock payable on June 15, to stockholders of record on May 31. The market value of Intercontinental Corporation's common stock was $18 per share. The number of shares outstanding on this date were 680,000 shares. 7/01/19 An error was discovered. In, 2018 the ending inventory was by understated by $80,000 which caused Cost of Goods Sold on the income statement to be overstated by this amount (Ignore, Income taxes) 8/10/19 Purchased 50,000 shares of Intercontinental Corporation's common stock for $20 per share to be held in the company's treasury. 11/12/19 Sold 20,000 shares of treasury stock for $10 per share. 12/31/19 Determined that Net Income for the year was $2,640,000. Spring 2020
