Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer the question in Full and in the same format, please be very clear with the answer Required information (The following information applies to

please answer the question in Full and in the same format, please be very clear with the answer image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information (The following information applies to the questions displayed below. Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: .820,000 shares of no-par common stock were authorized: 160,000 shares were issued on January 1, 2019, at $17.00 per share. 290.000 shares of $90 par value, 8.00% cumulative, preferred stock were authorized: 68,000 shares were issued on January 1, 2019. at $150 per share. Net income for the years ended December 31, 2019 and 2020 was $1.400.000 and $2,630,000, respectively No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,630,000, payable on February 12, 2021, to holders of record as of January 19, 2021 Required: 1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial state effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Assets Llabilities Stockholders' Equity Homestead declared dividends of $1,630,000. payable on February 12, 2021, to holders of record as of January 19. 2021. Required: 1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Liabilities Assets Stockholders' Equity Net Income 1. 2019. Indicate the financial statement Income Statement Revenues Rholders' Equity Net Income Expenses 2. Use the horizontal model for the declaration of dividends on December 28, 2020. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Liabilities Assets Stockholders' Equity Net Income statement effect. (Enter Income Statement Revenues Equity Net Income Expenses 3. Use the horizontal model for the payment of dividends on February 12, 2021. Indicate the financial statement effect. (Ent decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Llabilities Stockholders' Equity Net Income ary 12, 2021. Indicate the financial statement effect. (Enter effect.) Income Statement Revenues + Stockholders' Equity- Net Income Expenses

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

Intermediate Accounting

Authors: James D. Stice, Earl K. Stice, Fred Skousen

17th Edition

032459237X, 978-0324592375

More Books

Students also viewed these Accounting questions