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I don't need to know how to do part a, c, or d. Chapter 11 Reporting and Analyzing Stockholders' Equity 55 -11-57. Identifying and Analyzing
I don't need to know how to do part a, c, or d.
Chapter 11 Reporting and Analyzing Stockholders' Equity 55 -11-57. Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders' equity of Verrecchia Company at December 31, 2014, follows: LO2, 3,6 Common stock, $5 par value, 350,000 shares authorized; 150,000 shares issued and outstanding. Paid-in capital in excess of par value. . . . . . . . . ... Retained earnings .... $750,000 600,000 346,000 During 2015, the following transactions occurred. Jan. 5 Issued 10.000 shares of common stock for $12 cash per share. Jan. 18 Purchased 4,000 shares of common stock for the treasury at $14 cash per share. Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $17 cash per share. July 17 Sold 500 shares of the remaining treasury stock for $13 cash per share. Oct. 1 Issued 5,000 shares of 8%, $25 par value preferred stock for $35 cash per share. This is the first issuance of preferred shares from 50,000 authorized shares. REQUIRED a. Using the financial statement effects template, illustrate the effects of each transaction. b. Prepare the journal entries for these transactions. Post the journal entries from b to the related T-accounts. d. Prepare the December 31, 2015, stockholders' equity section of the balance sheet assuming that the company reports net income of $72,500 for the year. e. How will each transaction affect the calculation of basic EPS? Isotomont Effocts of Stock Transactions LO2.4Step by Step Solution
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