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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 balance sheet in thousands, except share
and per share amounts:
June in
thousands
Paidin capital:
$ Preferred stock, $ par value, cumulative, shares authorized,
shares issued and outstanding
Common stock, $ par value, shares authorized, shares
issued, shares outstanding
Additional paidin capital on common stock
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
c What was the average issue price of common stock shown on the June balance sheet?
d How many shares of treasury stock does DeZurik Corporation own at June
e Assume that the treasury shares were purchased for $ per share. Calculate the amount that should be shown on the balance
sheet for treasury stock at June
f Calculate the retained earnings balance at June after you have completed parts a to eHint: Keep in mind that Treasury
Stock is a contra account.
g Assume that the Retained Earnings balance on July was $in thousands and that net income for the year ended
June was $in thousands The 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 Taccount analysis to determine the June balance.
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