Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wildhorse Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were

Wildhorse Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders equity.

Preferred Stock, 159,600 shares $ 3,192,000
Common Stock, 1,970,000 shares 9,850,000
Paid-in Capital in Excess of ParPreferred Stock 193,000
Paid-in Capital in Excess of ParCommon Stock 27,534,000
Retained Earnings 4,424,000

The following transactions affected stockholders equity during 2021.

Jan. 1 29,100 shares of preferred stock issued at $22 per share.
Feb. 1 47,100 shares of common stock issued at $20 per share.
June 1 2-for-1 stock split (par value reduced to $2.50).
July 1 32,500 shares of common treasury stock purchased at $11 per share. Wildhorse uses the cost method.
Sept. 15 10,400 shares of treasury stock reissued at $12 per share.
Dec. 31 The preferred dividend is declared, and a common dividend of 46 per share is declared.
Dec. 31 Net income is $2,112,000.

Prepare the stockholders equity section for Wildhorse Company at December 31, 2021. (Enter account name only and do not provide descriptive information.)

image text in transcribed

WILDHORSE COMPANY Stockholders' Equity December 31, 2021 Capital Stock Preferred Stock 3,774,000 Common Stock 10,085,500 Total Capital Stock 13,859,500 Additional Paid-in Capital Paid-in Capital in Excess of Par-Common Stock 28,390,500 Paid-in Capital in Excess of Par-Preferred Stock 251,200 Paid-in Capital from Treasury Stock 10,400 28,652,100 Total Paid-in Capital 42,511.600 Retained Earnings 3.204.380 45.715,980 Total Paid-in Capital and Retained Earnings Less : Treasury Stock 243,100 i Total Stockholders' Equity 45,472,880

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_2

Step: 3

blur-text-image_3

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

Proli Footwear Inc An Audit And Fraud Simulation For Team-Based Student Learning

Authors: Patricia Poli, Richard Proctor

2nd Edition

0615455492, 978-0615455495

More Books

Students also viewed these Accounting questions