Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Swifty Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were

Swifty Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders equity.

Preferred Stock, 152,200 shares $ 3,044,000
Common Stock, 2,039,000 shares 10,195,000
Paid-in Capital in Excess of ParPreferred Stock 202,000
Paid-in Capital in Excess of ParCommon Stock 26,684,000
Retained Earnings 4,587,000

The following transactions affected stockholders equity during 2021.

Jan. 1 32,600 shares of preferred stock issued at $23 per share.
Feb. 1 49,300 shares of common stock issued at $19 per share.
June 1 2-for-1 stock split (par value reduced to $2.50).
July 1 29,900 shares of common treasury stock purchased at $10 per share. Swifty uses the cost method.
Sept. 15 10,300 shares of treasury stock reissued at $12 per share.
Dec. 31 The preferred dividend is declared, and a common dividend of 52 per share is declared.
Dec. 31 Net income is $2,134,000.

Prepare the stockholders equity section for Swifty Company at December 31, 2021.

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

Horngrens Accounting, The Managerial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

13th Edition

0135982138, 9780135982136

More Books

Students also viewed these Accounting questions