Question
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started