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Use the following information for all questions related to Colchuck Company. Colchuck Company has the following information for Year 1 and Year 2. Year 1
Use the following information for all questions related to Colchuck Company. Colchuck Company has the following information for Year 1 and Year 2. Year 1 is Colchuck's first year in business Year 1: Colchuck Company issues 2,000 shares of $1 par value common stock for $12 per share. Colchuck issues 100 shares of 10% cumulative preferred stock, which has a par value of $10. Colchuck received $11 per preferred share from investors. Colchuck earns income in its first year of operations of $10,000. Colchuck does not pay a dividend in Year 1. Year 2: Colchuck buys 200 shares of its own common stock from the market for $14 per share. Colchuck initiates a 2:1 common stock split on outstanding common shares. Colchuck earns income of $20,000 and declares, but does not pay, dividends of $12,000 to be divided among preferred and common shareholders. Question 7 1 pts Calculate retained earnings for Colchuck Company as of December 31st, Year 2, after all closing entries have been made. 1 pts Question 7 Calculate retained earnings for Colchuck Company as of December 31st, Year 2, after all closing entries have been made. 1 pts Question 8 What amount of cash dividends will preferred shareholders of Colchuck Company receive in Year 22 1 pts Question 9 Calculate Colchuck's total stockholder's equity at the end of Year 2
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