hmwk 10.docx (43.3 KB) Page 0140 - ZOOM + 1. Shares actually sold. Use the following to answer questions 6-12 JR, Inc., has two classes of stock authorized: $100.00 par preferred and $0.01 par value common. As of the beginning of 20XC, 1,000 shares of preferred stock and 700,000 shares of common stock have been issued. Record the following transactions to complete the Statement of Stockholders' Equity: Effect on Stockholders' Equity 1-Mar Issue 1,000 additional shares of preferred stock for $101.00 per share Issue 100,000 additional shares of common 1-Apr stock for $18 per share Declare a cash dividend on both common 1-Jun and preferred stock of $1.50 per share to all stockholders of record on June 15. 30-Jun Pay the cash dividend declared on June 1. Repurchase 50,000 shares of common 1-Aug treasury stock for $19.00 per share Reissue 20,000 shares of treasury stock 1-Oct purchased on August 1 for $20.00 per share 31-Dec Net income for the year was $1,300,000 The beginning balances are shown below. Complete the Statement of Stockholders' Equity using the above information: Additional Paid-in Preferred Total Stockholders' Common Retained Treasury k10.docx (43.3 KB) + Page 1 of 4 0 - ZOOM 1-Aug Repurchase 50,000 shares of common treasury stock for $19.00 per share 1-Oct Reissue 20,000 shares of treasury stock purchased on August 1 for $20.00 per share 31-Dec Net income for the year was $1,300,000 The beginning balances are shown below. Complete the Statement of Stockholders' Equity using the above information: Additional Total Preferred Common Paid-in Retained Treasury Stockholders' Stock Stock Capital Earnings Stock Equity $100,000 Beginning balance 20XC $7,000 $9,793,000 $1,425,000 $11,325,000 $0 Issuance of stock Net income for the year Less: Dividends Purchase of Treasury Sale of Treasury Ending balance 20xc Then answer the following questions: Page 10-1 Chapter 10 Page of 4 0 - 200M + 6. $_ When the shares were issued on March 1, how much did additional paid in capital increase? 7. $_ On June 1" when the dividend was declared, how much did retained earning decrease? On August 1st when the shares were repurchased, how much did stockholders equity decrease 9.$_ On August 1" when the shares were repurchased, how much did net income decrease? 10. $ On October 1st when the shares were reissued, how much did additional paid in capital change (if decrease put "-" in front of the number)? 11. $. Compute ending retained earnings on December 31 12. $_ _Compute ending stockholders equity on December 31st Use the following to answer questions 13 - 17 KC Corp.'s management is considering either a 100% stock dividend or a 2-for-1 stock split