Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The stockholders equity accounts of Swifty Corporation on January 1, 2022, were as follows. Preferred Stock (8%, $100 par noncumulative, 5,000 shares authorized) $300,000 Common

The stockholders equity accounts of Swifty Corporation on January 1, 2022, were as follows.

Preferred Stock (8%, $100 par noncumulative, 5,000 shares authorized)

$300,000

Common Stock ($4 stated value, 300,000 shares authorized)

1,000,000

Paid-in Capital in Excess of Par ValuePreferred Stock

15,000

Paid-in Capital in Excess of Stated ValueCommon Stock

480,000

Retained Earnings

689,000

Treasury Stock (5,000 common shares)

40,000

During 2022, the corporation had the following transactions and events pertaining to its stockholders equity.

Feb. 1 Issued 5,000 shares of common stock for $35,000.
Mar. 20 Purchased 1,000 additional shares of common treasury stock at $7 per share.
Oct. 1 Declared a 8% cash dividend on preferred stock, payable November 1.
Nov. 1 Paid the dividend declared on October 1.
Dec. 1 Declared a $0.85 per share cash dividend to common stockholders of record on December 15, payable December 31, 2022.
Dec. 31 Paid the dividend declared on December 1.

(a)-(b)

(a) Prepare a tabular summary that includes the January 1, 2022, balances. Do not include the beginning balance in Retained Earnings in the tabular summary.
(b) Record the 2022 transactions in the tabular summary.

Include margin explanations for the changes in revenues and expenses. (Round answers to 0 decimal places, e.g. 5,275. If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)

Assets

=

Liabilities

+

Stockholders Equity

Paid-in-Capital

Retained Earnings

Cash

=

Div. Pay.

+

Common Stock

+

PIC in Excess of Stated Value Com.

+

Pref. Stock

+

PIC in Excess of Par Value Pref.

-

Treasury Stock

+

Revenue

-

Expense

-

Dividend

(a)

Bal.

$enter a balance

$enter a balance

$enter a balance

$enter a balance

$enter a balance

$enter a balance

$enter a balance

$enter a balance

$enter a balance

$enter a balance

select an account title DividendsPaid-in-capital in excess of preferred stockCommon stockPaid-in-capital in excess of common stockInterest expensePreferred stock

(b)

Feb. 1

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an account title DividendsPaid-in-capital in excess of common stockCommon stockInterest expensePreferred stockPaid-in-capital in excess of preferred stock

Mar. 20

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an account title Common stockInterest expenseDividendsPaid-in-capital in excess of preferred stockPreferred stockPaid-in-capital in excess of common stock

Oct. 1

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an account title DividendsPaid-in-capital in excess of common stockInterest expenseCommon stockPreferred stockPaid-in-capital in excess of preferred stock

Nov. 1

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an account title Interest expenseDividendsPaid-in-capital in excess of preferred stockPaid-in-capital in excess of common stockCommon stockPreferred stock

Dec. 1

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an account title Interest expensePreferred stockPaid-in-capital in excess of common stockCommon stockDividendsPaid-in-capital in excess of preferred stock

Dec. 31

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

select an account title

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

Corporate Finance, European Edition

Authors: Peter Moles, Robert Parrino, David S. Kidwell

1st Edition

0470683708, 9780470683705

More Books

Students also viewed these Accounting questions

Question

Why do you think most employers opt for the home-based salary plan?

Answered: 1 week ago