Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

T TR, Inc., has two classes of stock authorized: $100.00 par preferred and $0.01 par value common. As of the beginning of 20XD, 5,000 shares

image text in transcribedimage text in transcribed

T TR, Inc., has two classes of stock authorized: $100.00 par preferred and $0.01 par value common. As of the beginning of 20XD, 5,000 shares of preferred stock and 1,000,000 shares of common stock have been issued. Analyze the following transactions as it relates to the Stockholders' Equity accounts (PS, CS, APIC, RE, TS) and then complete the Statement of Stockholders' Equity before answering the questions on the next page. Affect on Stockholders' Equity Accounts Issue 1,000 additional shares of preferred 1-Mar stock for $115 per share Issue 50,000 additional shares of common 1-Apr stock for $20.00 per share Declare a cash dividend on both common 1-Jun and preferred stock of $0.30 per share to all stockholders of record on June 15. 30-Jun Pay the cash dividend declared on June 1. Repurchase 5,000 shares of common 1-Aug treasury stock for $16 per share Sell 3,000 shares of treasury stock 1-Oct purchased on August 1 for $19 per share 31-Dec Net income for the year was $325,000. The beginning balances are shown below. Preferred Stock (PS) Common Stock (CS) Additional Paid-in Capital (APIC) Retained Earnings (RE) Treasury Stock (TS) Total Stockholders' Equity $500,000 $10,000 $12,580,000 $642,500 $0 $13,732,500 Beginning balance 20XD Issuance of stock Net income for the year Dividends Purchase of Treasury Sale of Treasury Ending balance 20XD 6. $ When the shares were issued on March 1, how much did additional paid in capital increase? 7. $. On August 1st when the shares were repurchased, how much did stockholders' equity decrease? 8. $. On August 1st when the shares were repurchased, how much did net income decrease? 9. $. _On October 1st when the 3,000 shares were resold, how much did additional paid in capital change (if decrease put "-" in front of the number)? 10. $. On June 1st when the dividend was declared, how much did retained earning decrease? 11. $. Compute ending retained earnings on December 31st 12. $ Compute ending stockholders' equity on December 31st

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_2

Step: 3

blur-text-image_3

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

The Wall Street Mba

Authors: Reuben Advani

2nd Edition

007178831X, 9780071788311

More Books

Students also viewed these Accounting questions