Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DeZurik Corp. had the following stockholders' equity section in its June 30, 2020, balance sheet (in thousands, except share and per share amounts): June 30

image text in transcribed

DeZurik Corp. had the following stockholders' equity section in its June 30, 2020, balance sheet (in thousands, except share and per share amounts): June 30 (in thousands) 2020 2019 $ 3,360 Paid-in capital: $5.60 Preferred stock, $ ? par value, cumulative, 200,000 shares authorized, 80,000 shares issued and outstanding Common stock, $5 par value, 4,000,000 shares authorized, 3,390,000 shares issued, 3,000,000 shares outstanding Additional paid-in capital on common stock Retained earnings Less: Treasury common stock, at cost, ? shares Total stockholders' equity 27,459 $ 66,759 $ 60, 345 The transactions affecting the stockholders' equity accounts of DeZurik Corp. for the year ended June 30, 2020, are summarized here: 1. 310,000 shares of common stock were issued at $14.30 per share. 2. 90,000 shares of treasury (common) stock were sold for $19.1 per share. 3. Net income for the year was $1,390 (in thousands). 4. The fiscal 2020 preferred dividends were paid in full. Assume that all 80,000 shares were outstanding throughout the year ended June 30, 2020. 5. A cash dividend of $0.20 per share was declared and paid to common stockholders. Assume that transactions (1) and (2) occurred before the dividend was declared. 6. The preferred stock was split 2 for 1 on June 30, 2020. (Note: This transaction had no effect on transaction 4.) Required: a-1. Record the effect of transactions 1-6 in journal entry format. a-2. Calculate the dollar amounts that DeZurik Corp. would report for each stockholders' equity caption on its June 30, 2020, balance sheet, after recording the effects of transactions 1-6. Also the treasury stock was purchased at $19.1

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

Accounting, Representation And Responsibility

Authors: Niels Joseph Lennon

1st Edition

0367540436, 9780367540432

More Books

Students also viewed these Accounting questions

Question

Describe the team dynamics at Facebook.

Answered: 1 week ago