Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The authorized share capital of the Alfred Cake Company is 110,000 shares. The equity is currently shown in the company's book as follows: Common stock

The authorized share capital of the Alfred Cake Company is 110,000 shares. The equity is currently shown in the company's book as follows: Common stock ($2 par value) $79,000; Additional paid-in capital $29,000; Retained Earnings $49,000 which total $157,000: Common equity consist of Treasury Stock (4,000 shares) $23,000.00; net common equity $134,000 a. Suppose that the company issues 29,000 shares at $5 a share. Construct the revised equity account. What is the Common stock_________?, what is Additional paid-in capital_______? what is retained earnings _______?, common equity ________? Treasury stock _______? and Net common equity ________? b. What would happen to the companys' books if instead it bought back 11,000 shaes at $5 per share? Construct the revised equity accounts. What would common stock be $_________?; Additional paid-in capital________?; Retained earnings _______?; Common equity ________?; Treasury stock _________?; and Net common equity $_________

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

Profit First For Dentists Proven Cash Flow Strategies For Financial Freedom

Authors: Barbara Stackhouse, Drew Hinrichs, Mike Michalowicz

1st Edition

1735907804, 978-1735907802

More Books

Students also viewed these Accounting questions