Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is the stockholders' equity section of the balance sheet of Fairfield Corporation as of September 1, 2021: Preferred stock, 6%, non-cumulative $50 par,

image text in transcribed

The following is the stockholders' equity section of the balance sheet of Fairfield Corporation as of September 1, 2021: Preferred stock, 6%, non-cumulative $50 par, 40,000 shares authorized, 6,500 shares issued and outstanding.......... $ 325,000 Common stock, $10 par, 3,000,000 shares authorized, 120,000 shares Issued and outstanding.......... 1,200,000 Paid-in capital in excess of par-common stock.. 420,000 Total paid-in capital/contributed capital....... $ 1,945,000 Retained earnings........ 467,200 Total stockholders' equity..... $ 2.412.200 Fairfield Corporation reported the following transactions during September, 2021: Sept. 1 Declared the required annual cash dividend on the preferred stock and a $0.70 dividend on the common stock. Sept. 8 Issued an additional 1,000 shares of 6% preferred stock for $100 per share. Sept. 15 Paid the dividends declared on September 1. Sept. 16 Declared a 10% common stock dividend. The market value of the common stock was $20 per share. Sept. 30 The board of directors announced a 2-for-1 stock split. Required: Show the dollar amount and the effect as increase, decrease, or no effect of each transaction on both total paid-in capital and total stockholders' equity. You may copy the template to your answer sheet to answer this question. Date Total paid-in capital Total stockholders' equity Sept. 1 Sept. 8 Sept. 15 Sept. 16 Sept. 30

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

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

3rd Edition

0136946690, 978-0136946694

More Books

Students also viewed these Accounting questions

Question

Why do some individuals confess to a crime they did not commit?

Answered: 1 week ago