Question
Mahl Co. is a publicly held company whose shares are traded in the over-the-counter market. It issues single-period statements only. Its fiscal year end is
Mahl Co. is a publicly held company whose shares are traded in the over-the-counter market. It issues single-period statements only. Its fiscal year end is December 31, Year 6.
Use the facts in the exhibits to determine the amounts requested for the following equity items, which will be reported on Mahls statement of changes in equity at December 31, Year 6. For each item, enter the appropriate amount in the associated cell. If the amount is zero, enter a zero (0).
Exhibits:
1. - Resolution of the Board of Directors
RESOLUTION OF THE BOARD OF DIRECTORS OF MAHL COMPANY
Tumbleweed, Texas
DECLARATION OF PREFERRED STOCK DIVIDENDS
BE IT RESOLVED THAT:
- The company declares on this day, December 20, Year 6, the required annual cash dividend for preferred stock for Year 6.
- The dividend is to be set aside and distributed on January 5, Year 7.
- The directors of Mahl Company hereby certify that the preferred shareholders of record with the company will be provided with a copy of this notice.
The undersigned, being the Chairman of the Board for Mahl Company, hereby approves the foregoing resolution in accordance with the provisions of the companys bylaws.
DATED the 20th day of December, Year 6.
Carson Mitchel |
Carson Mitchel, Chairman of the Board |
2. - E-Mail from CFO
MAHL COMPANY
Tumbleweed, Texas
From: Alex Johnson; ajohnson@mahlcompany.com To: AcctDirectors; acctdirectors@mahlcompany.com Date: October 15, Year 6 Subject: Treasury Stock Training
To all Accounting Directors,
You are all an integral part of this company, and I believe the short training sessions our managers hold in their respective team meetings each week is both a great asset to the employees development and to the future growth of our company.
I usually leave the subject matter of the training sessions up to you; however, this year we have had activity with treasury stock, and I think it would make an excellent learning opportunity for the staff.
I have provided the information below for the transactions that took place this year. Please meet with your managers and discuss, so they in turn can teach their teams.
See me if you have questions! Success to us all!
Alex Johnson
Alex Johnson, CFO
Mahl Company
3. - Press Release
PRESS RELEASE
MAHL COMPANY DECLARES DIVIDEND
Tumbleweed, Texas, November 4, Year 6 Mahl Company, manufacturer of specialty construction equipment, today announced that its Board of Directors declared a cash dividend of $1.50 per share of the companys common stock.
The dividend will be paid on November 25, Year 6, to all common shareholders of record as of the close of business on November 15, Year 6.
About Mahl Company Founded in Year 1, Mahl Company is a manufacturer of specialty construction equipment at its location in Tumbleweed, Texas. The company primarily manufactures special order construction equipment for large government contracts. Earlier this year, the company acquired 40 acres of undeveloped land with the intent of expanding and improving its manufacturing process. With these improvements, the company will be able to manufacture special orders on a much smaller scale, increasing its footprint in the private sector.
4. - Equity Accounts
Mahl Co.
December 31, Year 5
Preferred stock, $100 par value, 6% | |
noncumulative; 5,000 shares authorized; | |
2,000 issued and outstanding | $ 200,000 |
Common stock, $1 par value, 150,000 shares | |
authorized; 100,000 issued and outstanding | 100,000 |
Additional paid-in capital | 800,000 |
Retained earnings | 1,586,000 |
Accumulated other comprehensive income | 312,000 |
Total equity | $2,998,000 |
5. - Special Meeting - Board of Directors
Special Meeting - Board of Directors
Minutes
MAHL COMPANY
Tumbleweed, Texas
A special meeting of the Board of Directors of Mahl Company was held on February 1, Year 6, at 8:00 a.m. at the company offices in Tumbleweed, Texas.
Those present were:
Carson Mitchel, Chairman of the Board; Wallace Shepard, President and CEO; Jeremy Cox; Suzanne Richardson; and Tabitha Gillespie.
Proceedings:
Mr. Carson Mitchel, Chairman of the Board, presided, and Mr. Jeremy Cox acted as secretary of the meeting.
On motion and unanimously approved, the following resolution was adopted:
BE IT RESOLVED, on February 1, Year 6, Mahl Company will issue 13,000 shares of common stock to Ram Company in exchange for land.
As of today, February 1, Year 6, the stock has a quoted market price of $11 per share.
The land consists of 40 acres of undeveloped land located off of County Road 123 and Dustville Blvd., on the east side of Tumbleweed, Texas. Parcel numbers are 86-001-5467-9284 and 86-001-5467-9285.
The assessed value of the land for property tax purposes is $90,000 and is carried on Ram Companys books at $135,000.
Adjournment:
There being no further business to come before the meeting, it was on motion adjourned at 2:30 p.m.
Respectfully submitted:
Jeremy Cox, Acting Secretary |
Jeremy Cox, Acting Secretary |
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