Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

the first photo is the problem & the second one js the format. can u show the work/math? thank u! Supplemental 4 The stockholders' equity

the first photo is the problem & the second one js the format. can u show the work/math? thank u!
image text in transcribed
image text in transcribed
Supplemental 4 The stockholders' equity section of Karp Company stanuary 1, 2021 follows Preferred Stock, 5, 550 por $600,000 Common Stock, 55 par 5800.000 Paid in Capital in excess of Par. Preferred $200.000 Paid in Capital in excess of Par Common $300,000 Retained Earnings $800,000 There were $3,000 of preferred dividends in arrears on January 1, 2021 During 2021, the company had the following transactions and events, Prepare the journal entries and the stockholders' equity. 15 Jun Issued 10,000 shares of preferred stock at $80. 1-Jul Declared $72,000 of cash dividends to shareholders. 1-Sep Paid the cash dividend declared on July 1 15-Sep Announced a 2 for 1 common stock split when the market price was $38 1-Oct Purchased 10.000 shares of common for the treasury at $25 per share 1-Dec Declared a 10% stock dividend on the common stock when the market price was $20 per share. 31-Dec Closed the net income for 2021 of $650,000 Stockholders' Equity at December 31, 2021 Preferred Stock, 6%, $50 par, 22,000 shares issued and outstanding Common Stock, $2.5 par, 351,000 sh issued, 341,000 sh outstanding Preferred Stock Paid in Capital in excess of par Common Stock Paid in Capital in excess of par Total Paid in Capital Retained Earnings Less: Treasury Stock, 10,000 Common Shares @ $25 per share Total Stockholders' Equity Supplemental 4 DR CR Stockholders' Equity at December 31, 2021 Preferred Stock, 6%, $50 par, 22,000 shares issued and outstanding Common Stock, $2.5 par, 351,000 shares issued, shares outstanding Preferred Stock Paid in Capital in excess of par Common Stock Paid in Capital in excess of par Total Paid in Capital Retained Earnings Less: Treasury Stock, 10,000 Common Shares @ $20 per share Total Stockholders' 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

Accounting Information Systems A Practictioner Emphasis

Authors: Cynthia D. Heagy, Constance M. Lehmann

10th Edition

1891002821, 9781891002823

More Books

Students also viewed these Accounting questions

Question

1. What is a rehabilitation theory?

Answered: 1 week ago

Question

=+Does it showcase the firm's benefits?

Answered: 1 week ago

Question

=+ Does it list exciting places to go and famous sites to see?

Answered: 1 week ago