Answered step by step
Verified Expert Solution
Question
1 Approved Answer
prepare statement of stockholders equity The TMI Corporation has been in operation for over 30 years and, at December 31, 2017, it had: 10,000 shares
prepare statement of stockholders equity
The TMI Corporation has been in operation for over 30 years and, at December 31, 2017, it had: 10,000 shares of $300 par value common stock authorized, of which 4,000 shares had been issued, and 10,000 shares authorized, issued, and outstanding of S20 stated-value preferred stock, that pays a dividend of 4% On January 2, 2018, TMI's Board of Directors declared and issued a 3-for-I common stock split. Then, on September 1, 2018, TMI'S Board declared ) a 20% (small) common stock dividend to holders of record on October 1 to be distributed on November 1, and (ii) the preferred stock dividend The company's accounts also showed the following balances on August 31, 2018. before the declaration of the dividends: Additional contributed capital $ 90,000 Retained earnings (includes all net income earned through August 31)... 600,000 When distributed in November, the stock dividend included 6,000 fractional share rights, representing 600 potential shares. On December 15, 90% of the rights were exercised: the remaining rights will not be exercised until 2019. On December 20, 2018, TMI acquired 2,000 shares of its own common stock at the current market value. On December 30, 2018, TMI established a $206,000 sinking fund, with an equivalent reserve in stockholders' equity. The company had additional net income of $114,000 for the period September through December 31, 2018 After the stock split, the market value of TMI's common stock throughout 2018 was $6 per share. Using the information above, prepare a statement of stockholders' equity of The TMI Corporation at December 31, 2018, providing full disclosureStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started