Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Equity presentation Balance of accounts at the beginning of the vear for Naries Co is as follows: Common Stock (1 million shares issued at $10

image text in transcribed
image text in transcribed
Equity presentation Balance of accounts at the beginning of the vear for Naries Co is as follows: Common Stock (1 million shares issued at $10 par): $ 10,000,000 Paid in Capital in Excess of par - Common Stock 15,000,000 Preferred Stock (20,000 shares issued at $100 par): 2,000,000 Paid in Capital in Excess of par - Preferred: 500,000 Treasury Stock (15,000 shares @10) 150,000 During the year the following transactions took place: 1. Reacquired and retired 25,000 common shares for $600,000 cash 2. Reissued 10,000 retired shares for $ 26 per share. Additional information: . Preferred shares authorized 100,000 shares Authorized 5,000,000 common shares. Retained Earnings at the beginning of the year was $2,550,000. Net income for the year was $430,000 of which 60% was paid in dividends. . Required: Use all the information given above to prepare the Equity section of Balance Sheet at the end of the year. Equity presentation Balance of accounts at the beginning of the year for Naries Co is as follows: Common Stock (1 million shares issued at $10 par): $ 10,000,000 Paid in Capital in Excess of par - Common Stock 15,000,000 Preferred Stock (20,000 shares issued at $100 par): 2,000,000 Paid in Capital in Excess of par - Preferred: 500,000 I Treasury Stock (15,000 shares @10) 150,000 During the year the following transactions took place: 1. Reacquired and retired 25,000 common shares for $600,000 cash 2. Reissued 10,000 retired shares for $ 26 per share. Additional information: . . Preferred shares authorized 100,000 shares Authorized 5,000,000 common shares. Retained Earnings at the beginning of the year was $2,550,000. Net income for the year was $430,000 of which 60% was paid in dividends. Required: Use all the information given above to prepare the Equity section of Balance Sheet at the end of the year

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

Mergers Acquisitions And Other Restructuring Activities

Authors: Donald DePamphilis

10th Edition

0128150750, 978-0128150757

More Books

Students also viewed these Finance questions

Question

To what extent is the information reliable and valid?

Answered: 1 week ago