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I need retained earnings in the line of cash dividens Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value
I need retained earnings in the line of cash dividens
Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of 2021, 300 shares of preferred stock and 3,100 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: the beginning of March 1 Issue 1,100 shares of common stock for $33 per share. May 15 Purchase 400 shares of treasury stock for $26 per share. July 10 Resell 200 shares of treasury stock purchased on May 15 for $31 per share. October 15 Issue 200 shares of preferred stock for $36 per share. December 1 Declare a cash dividend on both common and preferred stock of $0.80 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock, $300; Common Stock, $31; Additional Paid-in Capital, $67,000; and Retained Earnings, $26,000. Net income for the year ended December 31, 2021, is $9,900. Taking into consideration the beginning balances on January 1, 2021 and all the transactions during 2021, respond to the following for Donnie Hilfiger: 2. Prepare the statement of stockholders' equity for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) DONNIE HILFIGER Statement of Stockholders' Equity Yo Ended December 31, 2021 Intal Check my work following for Donnie Hilfiger. 2. Prepare the statement of stockholders' equity for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) DONNIE HILFIGER Statement of Stockholders' Equity For the Year Ended December 31, 2021 Total Additional Preferred Stock Common Stock Pald-in Capital Retained Earnings Treasury Stock Stockholders' Equity of $ Balance, January 1 31 $ 93,331 0 36,300 Issue common stock Purchase treasury stock (10,400) 6.200 Resell treasury stock 7,200 Issue preferred stock Declare cash dividends 9.900 Net income $ 142,531 Balance, December 311 $ $ 300 $ 0 0 0 200 0 0 500 $ 0 0 67,000 $ 36,289 0 1,000 7,000 0 0 0 0 $ 42 0 111,289 $ $ 26,000 0 0 0 OF 9,900 35,900 (10,400) 5,200 0 0 0 $ (5,200) Step by Step Solution
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