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Exercise 15-18 (Part Level Submission) Cheyenne Company reported the following amounts in the stockholders equity section of its December 31, 2016, balance sheet. Preferred stock,
Exercise 15-18 (Part Level Submission)
Cheyenne Company reported the following amounts in the stockholders equity section of its December 31, 2016, balance sheet.
Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) | $200,000 | |
Common stock, $5 par (107,000 shares authorized, 21,400 shares issued) | 107,000 | |
Additional paid-in capital | 127,000 | |
Retained earnings | 491,000 | |
Total | $925,000 |
During 2017, Cheyenne took part in the following transactions concerning stockholders equity.
1. | Paid the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016. | |
2. | Purchased 1,800 shares of its own outstanding common stock for $41 per share. Cheyenne uses the cost method. | |
3. | Reissued 800 treasury shares for land valued at $33,700. | |
4. | Issued 520 shares of preferred stock at $105 per share. | |
5. | Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $44 per share. | |
6. | Issued the stock dividend. | |
7. | Declared the annual 2017 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018. |
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