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i. Shares actually sold. in a given year. AD Use the following to answer questions 6-12 JC, Inc., has two classes of stock authorized: $100.00

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i. Shares actually sold. in a given year. AD Use the following to answer questions 6-12 JC, 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 Issue 500 additional shares of preferred 1-Mar stock for $102.00 per share Issue 100,000 additional shares of common 1-Apr stock for $15 per share Declare a cash dividend on both common 1-Jun and preferred stock of $2.00 per share to all stockholders of record on June 15. 30-Jun Pay the cash dividend declared on June 1. Repurchase 30,000 shares of common 1-Aug treasury stock for $16.00 per share Reissue 20,000 sha of treasury stock 1-Oct purchased on August 1 for $19.00 per share 31-Dec Net income for the year was $1,950,000 5 w The beginning balances are shown below. Complete the Statement of Stockholders' Equity using the above information: Additional Total Preferred Common Pald-in Retained Treasury Stockholders' Stock Stock Capital Earnings Stock Equity Beginning balance 20XC $100,000 $7,000 $8,393,000 $1,427,000 $0 $9,927,000 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 JC Inc. Beginning Balance Issuance of Stock Net Income for the year Less:Dividends Purchase of Treasury Sale of Treasury Ending Balance 20xC Additional Total Preferred Common Paid in Retained Treasury Stockholders Stock Stock Capital Earnings Stock Equity 100000 7000 8393000 1427000 0 9927000 50000 1000 15000 66000 1950000 1950000 -3000 -3000 - 480000 - 480000 60000 320000 380000 150000 8000 8468000 3374000 -160000 11840000 500 x 100 = 50000 ; 500 x 2 = 1000 100000 x 0.01 = 1000 ; 100000 x (0.15 -0.01 ) = 14000 (1000 +500) x 2 = 3000 30000 x 16 = 480000 20000 x 16 = 320000; 20000 x ( 19 - 16 ) = 60000 6. $ When the shares were issued on March 1, how much did additional paid in capital increase? 7. $ On June 1st when the dividend was declared, how much did retained earning decrease? 8. $ On August 1" when the shares were repurchased, how much did stockholders' equity decrease? 9. $ On August 1st when the shares were repurchased, how much did net income decrease? 10. $ decrease put On October 1st when the shares were reissued, how much did additional paid in capital change (if in front of the number)? 11. $ Compute ending retained earnings on December 31" 12. $ Compute ending stockholders equity on December 31*

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