Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DeZurik Corporation had the following stockholders' equity section in its June 3 0 , 2 0 2 2 , balance sheet ( in thousands, except

DeZurik Corporation had the following stockholders' equity section in its June 30,2022, balance sheet (in thousands, except share
and per share amounts):
June 30(in
thousands)2022
Paid-in capital:
$4.50 Preferred stock, $ ? par value, cumulative, 150,000 shares authorized,
64,000 shares issued and outstanding
Common stock, $5 par value, 4,000,000 shares authorized, 1,640,000 shares
issued, 1,500,000 shares outstanding
Additional paid-in capital on common stock 22,960
Retained earnings
Required:
a. Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage.
b. Calculate the amount that should be shown on the balance sheet for common stock at June 30,2022.
c. What was the average issue price of common stock shown on the June 30,2022, balance sheet?
d. How many shares of treasury stock does DeZurik Corporation own at June 30,2022?
e. Assume that the treasury shares were purchased for $21 per share. Calculate the amount that should be shown on the balance
sheet for treasury stock at June 30,2022.
f. Calculate the retained earnings balance at June 30,2022, after you have completed parts a to e.(Hint: Keep in mind that Treasury
Stock is a contra account.)
g. Assume that the Retained Earnings balance on July 1,2021, was $13,400(in thousands) and that net income for the year ended
June 30,2022, was $908(in thousands). The 2022 preferred dividends were paid in full, and no other dividend transactions were
recorded during the year. Verify that the amount shown in the solution to part f is correct. (Hint: Prepare a statement of retained
earnings or do a T-account analysis to determine the June 30,2022, balance.)
image text in transcribed

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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

11th edition

978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139

More Books

Students also viewed these Accounting questions

Question

What design characteristics make for a successful Web page?

Answered: 1 week ago

Question

=+ b. What is the change in reserve balances since a year ago?

Answered: 1 week ago