E11-3 (Algo) Preparing the Stockholders' Equity Section of the Balance Sheet [LO 11-2, LO 11-4]North Wind Aviation received its charter during January authorizing the following capital stock:Preferred stock: 8 percent, par $10, authorized 20,000 shares.Common stock: par $1, authorized 50,000 shares.The following transactions occurred during the first year of operations in the order given:Issued a total of 41,000 shares of the common stock for $16 per share.Issued 11,000 shares of the preferred stock at $17 per share.Issued 3,100 shares of the common stock at $21 per share and 1,100 shares of the preferred stock at $17.Net income for the first year was $49,000, but no dividends were declared. NORTH WIND AVIATIONBalance Sheet (Partial)At December 31Stockholders' EquityContributed Capital:Common Stock24656,000 XAdditional Paid-In Capital, Common Stock65,100 XPreferred Stock187,000 XAdditional Paid-In Capital, Preferred Stock18,700 XTotal Contributed Capital926,800Retained Earnings49,000Total Stockholders' Equity$975,800%24

Additional paid in capital, preferred stock = 11000 shares×($17-$10)+ 1100 shares×($17-$10)…

11-2, LO 11-4] North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: Issued a total of 41,000 shares of the common stock for $16 per share. Issued 11,000 shares of the preferred stock at $17 per share

11-2, LO 11-4] North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: Issued a total of 41,000 shares of the common stock for $16 per share. Issued 11,000 shares of the preferred stock at $17 per share

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 99.4C

See similar textbooks

E11-3 (Algo) Preparing the Stockholders' Equity Section of the Balance Sheet [LO 11-2, LO 11-4]

North Wind Aviation received its charter during January authorizing the following capital stock:

Preferred stock: 8 percent, par $10, authorized 20,000 shares.
Common stock: par $1, authorized 50,000 shares.

The following transactions occurred during the first year of operations in the order given:

Issued a total of 41,000 shares of the common stock for $16 per share.
Issued 11,000 shares of the preferred stock at $17 per share.
Issued 3,100 shares of the common stock at $21 per share and 1,100 shares of the preferred stock at $17.
Net income for the first year was $49,000, but no dividends were declared.

NORTH WIND AVIATION
Balance Sheet (Partial)
At December 31
Stockholders' Equity
Contributed Capital:
Common Stock
24
656,000 X
Additional Paid-In Capital, Common Stock
65,100 X
Preferred Stock
187,000 X
Additional Paid-In Capital, Preferred Stock
18,700 X
Total Contributed Capital
926,800
Retained Earnings
49,000
Total Stockholders' Equity
$
975,800
%24

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The company capital structure consist of debt 340000 @ 4.05%, common stock 40% of preferred stock @ 9.09% and preferred stock 400000 @ 19.50%, calculate company’s weighted average cost of capital. Select one: a. 12.50% b. 11.79% c. 14.98% d. None of the option e. 13.15%
Compute for stockholders' equity using the following information: 5 points Bonds payable Additional paid in capital on common stock Donated capital Treasury stock at cost Common stock, par P1 Common stock option warrants Investments in marketable securities P120,000 20,000 16,000 8,000 200,000 40,000 28,000 6,000 54,000 Additional paid in capital from treasury stock Retained earnings
The company capital structure consists of debt 250000 at 0.084, preferred stock 230000 at 11% and common stock 120,000 at 14%, calculate a company's weighted average cost of capital Select one: O a. 0.1051 O b. 0.0629 OC 0.0771 d. 0.0349 e. All the given choices are not correct
Walking Bear Resources Inc. Equity Section of the Balance Sheet March 31, 2023 Contributed capital: Preferred shares, $17 cumulative, 3,500 shares authorized, issued, and outstanding Common shares, unlimited shares authorized, se,000 shares issued and outstanding Total contributed capital Retained earnings Total equity 1,190,000 1,200,000 2,390,000 472,000 2,062,000 Required: a. Refer to the equity section above. Assume that the preferred are convertible into common at a rate of eight common shares for each share of preferred. if 1000 shares of the preferred are converted into common on April 1, 2023, prepare the journal entry
Problem 1 (Adapted)The shareholders’ equity of Yelan Company showed the following account balances on December 31, 2018:Share capital, P100 5,000,000Share Premium 1,000,000Retained earnings 2,000,000Revaluation surplus 800,000 Compute the book value per share on December 31, 2018.
05-Principles of Financial N urses / BUSS 105-2-20202/ General / Test 2 - BUSS 105 The company capital structure consists of debt 135000 at 3.05%, common stock 410000 at 10.09% and preferred stock 200000 at 11%, calculate company's weighted average cost of capital Select one: O80 1906
BM KID Corporation Sharenolders' Equity 31-Jan-22 (In Pnilippine Peso) Paid-in Capital 10% Preference Snare Capital, 20,000 authorizea, P100 per (1) snares issued, 700 of wnich are in treasury P1,630,000 (2) Suoscribed Preference Snare Capital, 700 Snares P1,700,000 Ordinary Snare Capital, 50,000 shares authorized, no par value but with (3) stated value, 35,000 shares issued, 300 of which are in treasury 1,750,000 Subscribed Orainary Shares, (4) shares 100,000 1,850,000 Aacitional Paia-in Capital: Preference Snare Premium 340,000 Paid in Capital in excess of Ordinary Share Stated Value 370,000 710,000 Total Paid-in Capital 4,260,000 Accumulated Profits Unepproprieted 1,070,000 (5) Appropriated for Preference Treasury Shares (6) Approprietea for Orainary Treasury Sheres 1,195,000 Total SHE before Treasury Shares 5,455,000 Less Treasury Shares: 700 Preference shares at P125 cost 87,500 300 Ordinary shares at P125 cost 37.500 125,000 Total Shareholders' Equity Tne total Legal Capital is…
entó%20la%20siguiente%20información%20en%20su%20estado%20de%20situaci.. ESPAÑOL INGLÉS FRANCÉS ABC Corporation presented the following information in its 2021 statement of financial position: Common Stock ($30 par value, 5,000 issued and outstanding) $150,000 Capital paid in excess of par value of common $80,000 Retained Earnings $100,000 Prepare journal entries for each of the following transactions that occurred during the year: 24. 120 shares were purchased to be held as treasury stock at a cost of $60 per share. Enviar comentarios Guardado Contribuir
P Flag question The company capital structure consists of debt 250000 at 0.082, preferred stock 230000 at 11% and common stock 120000 at 14%, calculate company's weighted average cost of capital Select one: O a. 0.0341 Ob. All the given choices are not correct Oc. 0.1042 Od. 0.0621 O e. 0.0762
E15-16 Contributed Capital Adams Company's records provide the following information on December 31, 2019: LO 15.8 Account Title Amount Additional Paid-in Capital on Preferred Stock Common Stock Premium on Bonds Payable Preferred Stock Bonds Payable Preferred Stock Subscribed $ 17,000 75,000 4,000 80,000 100,000 20,000 121,000 84,000 SHOW ME HOW Retained Earnings Additional Paid-in Capital on Common Stock Additional information: 1. Common stock has a $5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a $100 par value, 3,000 shares are authorized, 800 shares have been issued and are out- standing. Two hundred shares have been subscribed at $120 per share. The stock pays an 8% dividend, is cumulative, and is callable at $130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance…
Jason’s Corp balance sheet as of December 31, 2021, reveals the following information. Preferred stock, $100 par $ 600,000 Paid-in capital in excess of par—preferred 50,000 Common stock, $1 par 300,000 Paid-in capital in excess of par—common 520,000 Retained earnings 320,000 What was the total paid-in capital as of December 31, 2021? Question 6Answer a. $320,000 b. $1,470,000 c. $900,000 d. $1,790,000
Question 1 The following information relates to a company listed on Luse- Mungwi PLC ZMK Issued share capital (1000 shares) Share premium. Reserves. Share holders funds. 6% Irredeemable Debentures. 9% Redeemable Debentures. Bank loan. Total Long Term Liabilities. Million 4 000 2 600 290 6,890 2,800 2,900 1 000 6 700 The current cum interest market value per k100 units is k103 and k105 fir the 6% and 9% Debentures respectively. The 9% Debenture is redeemable at par in 10 years time. The bank loan bears interest rate of 2% above the base rate (current base rate is 15%). The current ex-div market price of shares is k1, 100 and a dividend of K100 per share which is expected to grow at a rate of 5% per year has just been paid. The effective corporation tax rate for Mungwi is 30%. Required: A) Calculate the effective after tax weighted Average Cost of Capital (WACC) fir Mungwi PLC