Question
This is a multi part question and I am in desperate need for help. I have completed some of the information but I honestly have
This is a multi part question and I am in desperate need for help. I have completed some of the information but I honestly have no idea if I am correct or how to proceed with incomplete information.
DeZurik Corporation had the following stockholders equity section in its June 30, 2023, balance sheet (in thousands, except share and per share amounts):
The transactions affecting the stockholders' equity accounts of DeZurik Corporation for the year ended June 30, 2023, are summarized here:
1. $355,000 shares of common stock were issued at $15 per share
2. 90,000 shares of treasury (common) stock were sold for $19.9 per share
3. Net Income for the year was $1,470 (in thousands)
4. The fiscal 2023 preferred dividends were paid in full. Assume that all 95,000 shares were outstanding through the year ended June 30, 2023
5. A cash dividend of $0.20 per share was declared and paid to common stockholders. Assume that transactions 1 and 2 occurred before the dividend was declared.
6. The preferred stock was split 2 for 1 on June 30, 2023 (Note: This transaction had no effect on transaction 4)
Required:
Record the effect of transactions 1 to 6 in journal entry format.
Calculate the dollar amounts that DeZurik Corporation would report for each stockholders equity caption on its June 30, 2023, balance sheet, after recording the effects of transactions 1 to 6. Also the treasury stock was purchased at $19.9.
Indicate how the stockholders equity caption details for DeZurik Corporation would change for the June 30, 2023, balance sheet, as compared to the disclosures for the 2022 balance sheet.
What was the average issue price of common stock shown on the June 30, 2023, balance sheet?
The information in the picture below is the work I've done so far. I am not confident it is correct and am not sure how to move forward on blank items.
A1
A2
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Average issue price =
Paid-in capital: $6.40 Preferred stock, $ ? par value, cumulative, 200,000 shares authorized, 95,000 shares issued and outstanding Common stock, $5 par value, 4,000,000 shares authorized, 3,470,000 shares issued, 3,000,000 shares outstanding Additional paid-in capital on common stock Retained earnings 510 Less: Treasury common stock, at cost, ? shares Total stockholders' equity \begin{tabular}{|l|l|l|l|l|} \hline Preferred stock & & par value, cumulative, & shares authorized, & \\ \hline Common stock $5 par value 4000000 shares authorized & shares issued & \\ \hline Treasury common stock, at cost & shares. & & shares outstanding. \\ \hline \end{tabular}Step by Step Solution
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