Trendy Supercenter occasionally finds itself with excess cash to invest and consequently entered into the following transactions
Question:
Trendy Supercenter occasionally finds itself with excess cash to invest and consequently entered into the following transactions during 2012:
Jan. 15: Purchased 100 shares of BMI common stock at $130 per share, plus $250 in commissions.
May 23: Received dividends of $1 per share on the BMI stock.
June 1: Purchased 200 shares of MG stock at $60 per share, plus $300 in commissions.
Oct. 20: Sold all of the BMI stock at $140 per share, less commissions of $400.
Dec. 15: Received notification from MG that a $0.75-per-share dividend had been declared.
The checks will be mailed to stockholders on January 10, 2013.
Required
Identify and analyze all transactions on the books of Trendy Supercenter during 2012, including any necessary adjustment on December 15 when the dividend was declared.
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
The effect of the purchase on stock on January 15 can be identified and a...View the full answer
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton
