Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LO 8-1, 8-2, 8-6, 8-7 identify at least three items being reported as stockholders' equity items. Discuss what you've learned about these items and

image text in transcribed

LO 8-1, 8-2, 8-6, 8-7 identify at least three items being reported as stockholders' equity items. Discuss what you've learned about these items and how they are presented on the balance sheet. Case 8.36 Analytical case (part 1)-calculate missing stockholders' equity amounts for 2022 (Note: The information presented in this case is also used for Case 8.37. For now you can ignore the 2023 column in the balance sheet; all disclosures presented here relate to the June 30, 2022, balance sheet.) DeZurik Corp. had the following stockholders' equity section in its June 30, 2022, balance sheet (in thousands, except share and per share amounts): Paid-in capital: $4.50 Preferred stock. $? par value, cumulative, 150,000 shares authorized. 64,000 shares issued and outstanding Common stock, $5 par value, 4,000,000 shares authorized, 1,640,000 shares issued. 1,500,000 shares outstanding Additional paid-in capital on common stock.. Retained earnings. Less: Treasury common stock, at cost, shares Total stockholders' equity. Required: June 30 (in thousands) 2023 2022 $ 5,760 22,960 $52,922 $48,000 a. Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage. b. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2022. c. What was the average issue price of common stock shown on the June 30, 2022, balance sheet? e. d. How many shares of treasury stock does DeZurik Corp. own at June 30, 2022? Assume that the treasury shares were purchased for $21 per share. Calculate the amount that should be shown on the balance sheet for treasury stock at June 30, 2022. f. Calculate the retained earnings balance at June 30, 2022, after you have com- pleted parts a-e. (Hint: Keep in mind that Treasury Stock is a contra account.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Charles E. Davis, Elizabeth Davis

2nd edition

1118548639, 9781118800713, 1118338448, 9781118548639, 1118800710, 978-1118338445

More Books

Students also viewed these Accounting questions

Question

Solve the relation Exz:Solve therelation ne %3D

Answered: 1 week ago