Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help find the additional paid in capital and total stockholders equity Tony and Suzie purchased land costing $500,000 for a new camp in January

image text in transcribedimage text in transcribedPlease help find the additional paid in capital and total stockholders equity

Tony and Suzie purchased land costing $500,000 for a new camp in January 2017. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common.When the company began on July 1, 2015, Tony and Suzie each purchased 10,000 shares of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during 2017, its third year of operations:Jul. 2 Issue an additional 100,000 shares of common stock for $15 per share.Sep.10 Repurchase 10,000 shares of its own common stock (i.e., treasury stock) for $18 per share. Nov.15 Reissue 5,000 shares of treasury stock at $19 per share. Dec. 1 Declare a cash dividend on its common stock of $115,000 ($1 per share) to all stockholders of record on December 15. Dec. 31 Pay the cash dividend declared on Dec. 1

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

Edp Auditing A Primer

Authors: Joseph L. Sardinas

1st Edition

0471123056, 978-0471123057

More Books

Students also viewed these Accounting questions

Question

How has the term hacker evolved since the 1950s?

Answered: 1 week ago