Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DeZurik Corporation had the following stockholders' equity section in its June 30,2023 , balance sheet (in thousands, except share and per share amounts): The transactions

image text in transcribedimage text in transcribedimage text in transcribed DeZurik Corporation had the following stockholders' equity section in its June 30,2023 , balance sheet (in thousands, except share and per share amounts): The transactions affecting the stockholders' equity accounts of DeZurik Corporation for the year ended June 30, 2023, are summarized here: 1. 360,000 shares of common stock were issued at $15.60 per share. 2. 100,000 shares of treasury (common) stock were sold for $19.5 per share. 3. Net income for the year was $1,430 (in thousands). 4. The fiscal 2023 preferred dividends were paid in full. Assume that all 95,000 shares were outstanding throughout the year ended June 30, 2023. 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, 2023. (Note: This transaction had no effect on transaction 4.) a. 1. Record the effect of transactions 1 to 6 in journal entry format. 2. Calculate the dollar amounts that DeZurik Corporation would report for each stockholders' equity caption on its June 30, 2023 balance sheet, after recording the effects of transactions 1 to 6 . Also the treasury stock was purchased at \$19.5. b. Indicate how the stockholders' equity caption details for DeZurik Corporation would change for the June 30, 2023, balance sheet as compared to the disclosures for the 2022 balance sheet. c. What was the average issue price of common stock shown on the June 30,2023 , balance sheet? Indicate how the stockholders' equity caption details for DeZurik Corporation would change for the June 30,2023 , balance sheet, as compared to the disclosures for the 2022 balance sheet. Note: Round the preferred stock values in dollars, rounded to 2 decimal places. (e.g., 32.16). Do not enter answer in thousands

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

Sawyers Internal Auditing Enhancing And Protecting Organizational Value

Authors: The Internal Audit Foundation

7th Edition

1634540522, 9781634540520

More Books

Students also viewed these Accounting questions

Question

Explain the principles of SMED. What does SMED try to achieve?

Answered: 1 week ago