Question
On January 1, 2018, Hogan Inc. had the following account balances in its shareholders' equity accounts: Common stock, $1 par $200,000 Preferred stock, 6%, $100
On January 1, 2018, Hogan Inc. had the following account balances in its shareholders' equity accounts:
Common stock, $1 par | $200,000 |
Preferred stock, 6%, $100 par | 500,000 |
PIC excess of par, preferred | 10,000 |
PIC excess of par, common | 1,400,000 |
Retained earnings | 2,000,000 |
Treasury stock (10,000 shares) | 150,000 |
Part A:
Answer the following questions based on the information above: 1.How many shares of common stock are outstanding? 2.What was the average issue price of Hogans common stock?3. What is Hogans total paid in capital as of January 1, 2018? 4.What is the book value per share of Hogans common stock as of January 1, 2018?
Part B:
During 2018, Hogan Inc. had several transactions relating to common stock (in chronological order). Declared and issued a property dividend payable with 10,000 shares of Amen Corner Company (currently an equity investment). The Amen Corner stock has a book value of $8 per share and a market value of $10 per share at the date of declaration. Hogan sold 10,000 shares of its treasury stock at $14 per share. Hogan purchased 10,000 shares of its stock at $15 per share with the intention of retiring the shares. Net income for the year totaled $500,000.
Required: Prepare the stockholders equity section, as presented on Hogans Balance Sheet dated December 31, 2018. (journal entries are not required) excel spread sheet pereferrd
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