The transactions affecting the owners equity accounts of DeZurik Corp for the year ended June 30, 2011, are summarized here 1 320,000 shares of common stock were issued at $14 25 per share 2 80,000 shares of treasury (common) stock were sold for $18 per share 3 Net income for the year was $1,280 (i...

a Solution approach Record the journal entries for transactions 16 to determine the effects of the transactions on owners equity accounts 1 Dr Cash 32 ...

The transactions affecting the owners equity accounts of DeZurik Corp. for the year ended June 30, 2011,

Question:

The transactions affecting the owners’ equity accounts of DeZurik Corp. for the year ended June 30, 2011, are summarized here:
1. 320,000 shares of were issued at $14.25 per share.
2. 80,000 shares of treasury (common) stock were sold for $18 per share.
3. Net income for the year was $1,280 (in thousands).
4. The fiscal 2011 preferred dividends were paid in full. Assume that all 96,000 shares were outstanding throughout the year ended June 30, 2011.
5. A cash of $.20 per share was declared and paid to common stockholders. Assume that transactions (1) and (2) occurred before the was declared.
6. The preferred stock was split 2 for 1 on June 30, 2011.

Required:
a. Calculate the dollar amounts that DeZurik Corp. would report for each owners’ equity caption on its June 30, 2011, after recording the effects of transactions 1–6. Note that total owners’ equity at June 30, 2011, is provided as a check figure.
b. Indicate how the owners’ equity caption details for DeZurik Corp. would change for the June 30, 2011, as compared to the disclosures shown in Case 8.29 for the 2010 What was the average issue price of shown on the June 30, 2011, Common Stock
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