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no need to solve the whole problem. just explain to me how did they get the answer for paid in capital in excess - commonstock
no need to solve the whole problem. just explain to me how did they get the answer for "paid in capital in excess - commonstock 2,410,000", "retained earnings 1,083,300", "treasury stock - common" and "the total stock equity" in the second picture. cuz i dont know how to find them. so please explain
The following is the stockholders' equity section of Banks Corporation at Jan. 1, 2022 Preferred Stock (5100 par, 9%, cumulative, 80,000 shares authorized) 800,000 Common Stock (53 par, 400,000 authorized) During 2022, the following transactions occurred: 750,000 Paid in Capital in Excess of Par 1,900,000 Retained Earnings Feb. 1 Issue 30,000 shares of Common Stock for $20 per share 1,200,000 Treasury Stock - Common (40,000 shares) Jun. 1 Issue 1,000 shares of Preferred Stock for $105 per share (640,000) Total Stockholders' Equity Aug 15 Purchase 2,000 shares of Treasury Stock (common) for $17 per share 1,010,000 Oct. 1 Declared the annual dividend on Preferred Stock Oct. 15 Declared a $0.15 per share cash dividend on Common Stock Dec 31 Closed preferred and common dividends to Retained Earnings 1) Prepare the 2022 journal entries for the above transaction and 2) update the stockholders' equity section of the balance sheet as of December 31, 2022 Part 2 Solution: Preferred Stock $ 900,000 9,000Shares Issued and Outstanding Common Stock $ 840,000 400,000Shares Authorized 280,000Shares Issued 238,000Shares Outstanding 5,000 Paid in Capital in Excess - Preferred Stock Paid In Capital in Excess - Common Stock $ 2,410,000 Retained Earnings $ 1,083,300 Treasury Stock - Common (674,000) 42,000Shares Total Stockholders' Equity 4,564,300 Step by Step Solution
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