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The Clothing Cove has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during
The Clothing Cove has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations:
January 2Issues 100,000 shares of common stock for $24 per share.February 6Issues 1,900 shares of 7% preferred stock for $13 per share.September 10Purchases 12,000 shares of its own common stock for $29 per share.December 15Resells 6,000 shares of treasury stock at $34 per share.
In its first year of operations, The Clothing Cove has net income of $149,000 and pays dividends at the end of the year of $94,000 ($1 per share) on all common shares outstanding and $1,330 on all preferred shares outstanding.
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