Question
Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders' equity section of XPress Media Company for the current year follows. 8% preferred stock,
Identifying and Analyzing Financial Statement Effects of Stock Transactions
The stockholders' equity section of XPress Media Company for the current year follows.
8% preferred stock, $25 par value, 50,000 shares authorized;
10,080 shares issued and outstanding $252,000 Common stock, $10 par value, 200,000 shares authorized;
60,000 shares issued and outstanding 600,000 Paid-in capital in excess of par valuepreferred stock 102,000 Paid-in capital in excess of par valuecommon stock 360,000 Retained earnings 444,000
During the year, the following transactions occurred.
Jan. 10 Issued 33,600 shares of common stock for $18 cash per share.
Jan. 23 Repurchased 9,600 shares of common stock at $20 cash per share.
Mar. 14 Sold one-half of the treasury shares acquired January 23 for $22 cash per share.
July. 15 Issued 3,120 shares of preferred stock for $153,600 cash.
Nov. 15 Sold 1,200 of the treasury shares acquired January 23 for $26 cash per share.
Required
a. Use the financial statement effects template to indicate the effects from each of these transactions.
Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Note: Indicate a decrease in an account category by including a negative sign with the amount.
($ in millions) Balance Sheet Income Statement Transaction Cash
Asset + Noncash Assets = Liabilities + Contrib.
Capital + Earned
Capital Revenues - Expenses = Net
Income Jan. 10 Answer
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Common Stock
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Jan. 23 Answer
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Mar. 14 Answer
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Treasury Stock
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July 15 Answer
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Preferred Stock
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b. Prepare the stockholders' equity section of the balance sheet assuming the company reports net income of $145,200 for the current year.
Note: Do not use a negative sign with any of your answers.
XPRESS MEDIA COMPANY Stockholders' Equity Paidin capital
8% preferred stock, $25 par value, 50,000 shares authorized;
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shares issued and outstanding Answer
Common stock, $10 par value, 200,000 shares authorized;
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shares issued, (3,600 shares in treasury) Answer
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Additional paidin capital
Paidin capital in excess of par valuepreferred stock
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Paidin capital in excess of par valuecommon stock
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Paidin capital from treasury stock
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Total paidin capital
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Retained earnings
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Less: Treasury stock (3,600 common shares)
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Total stockholders' equity
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Financial Accounting
Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice
10th edition
324645570, 978-0324645576
