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Your answer is partially correct. Try again. Novak Company has two classes of capital stock outstanding: 9%, $20 par preferred and $5 par common. At
Your answer is partially correct. Try again. | |
Novak Company has two classes of capital stock outstanding: 9%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were included in stockholders equity.
Preferred Stock, 141,100 shares | $ 2,822,000 | |
Common Stock, 1,979,000 shares | 9,895,000 | |
Paid-in Capital in Excess of ParPreferred Stock | 194,000 | |
Paid-in Capital in Excess of ParCommon Stock | 26,547,000 | |
Retained Earnings | 4,497,000 |
The following transactions affected stockholders equity during 2018.
Jan. 1 | 27,400 shares of preferred stock issued at $22 per share. | |
Feb. 1 | 50,700 shares of common stock issued at $22 per share. | |
June 1 | 2-for-1 stock split (par value reduced to $2.50). | |
July 1 | 27,600 shares of common treasury stock purchased at $10 per share. Novak uses the cost method. | |
Sept. 15 | 9,500 shares of treasury stock reissued at $12 per share. | |
Dec. 31 | The preferred dividend is declared, and a common dividend of 48 per share is declared. | |
Dec. 31 | Net income is $2,134,000. |
Prepare the stockholders equity section for Novak Company at December 31, 2018.
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