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Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 710,000 shares of no-par common stock were authorized; 140,000 shares were issued on January 1, 2019, at $19.00 per share. 290,000 shares of $100 par value, 8.50% cumulative, preferred stock were authorized; 62,000 shares were issued on January 1, 2019, at $140 per share. Net income for the years ended December 31, 2019 and 2020 was $1,240,000 and $2,670,000, respectively. No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,670,000, payable on February 12, 2021, to holders of record as of January 19, 2021.

Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 710,000 shares of no-par common stock were authorized; 140,000 shares were issued on January 1, 2019, at $19.00 per share. 290,000 shares of $100 par value, 8.50% cumulative, preferred stock were authorized; 62,000 shares were issued on January 1, 2019, at $140 per share. Net income for the years ended December 31, 2019 and 2020 was $1,240,000 and $2,670,000, respectively. No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,670,000, payable on February 12, 2021, to holders of record as of January 19, 2021.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:

  • 710,000 shares of no-par common stock were authorized; 140,000 shares were issued on January 1, 2019, at $19.00 per share.
  • 290,000 shares of $100 par value, 8.50% cumulative, preferred stock were authorized; 62,000 shares were issued on January 1, 2019, at $140 per share.
  • Net income for the years ended December 31, 2019 and 2020 was $1,240,000 and $2,670,000, respectively.
  • No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,670,000, payable on February 12, 2021, to holders of record as of January 19, 2021.
Blackboard: Student Login - Te X Question 5 - Chapter 8 homew X + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fmybb.gvsu.edu%252Fwebapps%252Fportal%252Fframeset.jsp%253Ftab_tab_group_id%253D_13_1%2526url%2... ☆ Chapter 8 homework i Help Submit Saved Save & Exit Check my work 5 ! Required information Part 1 of 2 [The following information applies to the questions displayed below.] Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 0.5 710,000 shares of no-par common stock were authorized; 140,000 shares were issued on January 1, 2019, at $19.00 per points share. 290,000 shares of $100 par value, 8.50% cumulative, preferred stock were authorized; 62,000 shares were issued on January 1, 2019, at $140 per share. Net income for the years ended December 31, 2019 and 2020 was $1,240,000 and $2,670,000, respectively. • No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,670,000, payable on February 12, 2021, to holders of record as of January 19, Skipped еВook 2021. Print Required: 1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) References Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses %3D %3D 2. Use the horizontal model for the declaration of dividends on December 28, 2020. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Mc Graw Hill < Prev 5 6 of 18 Next > > ... + II I| I|| II
Transcribed Image Text:Blackboard: Student Login - Te X Question 5 - Chapter 8 homew X + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fmybb.gvsu.edu%252Fwebapps%252Fportal%252Fframeset.jsp%253Ftab_tab_group_id%253D_13_1%2526url%2... ☆ Chapter 8 homework i Help Submit Saved Save & Exit Check my work 5 ! Required information Part 1 of 2 [The following information applies to the questions displayed below.] Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 0.5 710,000 shares of no-par common stock were authorized; 140,000 shares were issued on January 1, 2019, at $19.00 per points share. 290,000 shares of $100 par value, 8.50% cumulative, preferred stock were authorized; 62,000 shares were issued on January 1, 2019, at $140 per share. Net income for the years ended December 31, 2019 and 2020 was $1,240,000 and $2,670,000, respectively. • No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,670,000, payable on February 12, 2021, to holders of record as of January 19, Skipped еВook 2021. Print Required: 1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) References Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses %3D %3D 2. Use the horizontal model for the declaration of dividends on December 28, 2020. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Mc Graw Hill < Prev 5 6 of 18 Next > > ... + II I| I|| II
Blackboard: Student Login - Te X Question 5 - Chapter 8 homew X + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fmybb.gvsu.edu%252Fwebapps%252Fportal%252Fframeset.jsp%253Ftab_tab_group_id%253D_13_1%2526url%2... ☆ Chapter 8 homework i Submit Saved Help Save & Exit Check my work 5 ! Required information Part 1 of 2 2. Use the horizontal model for the declaration of dividends on December 28, 2020. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) 0.5 points Balance Sheet Income Statement Skipped Assets Liabilities Stockholders' Equity Net Income Revenues Expenses + + еВook Print References 3. Use the horizontal model for the payment of dividends on February 12, 2021. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses + + Mc Graw Hill < Prev 5 6 of 18 Next > > ... II II II II II
Transcribed Image Text:Blackboard: Student Login - Te X Question 5 - Chapter 8 homew X + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fmybb.gvsu.edu%252Fwebapps%252Fportal%252Fframeset.jsp%253Ftab_tab_group_id%253D_13_1%2526url%2... ☆ Chapter 8 homework i Submit Saved Help Save & Exit Check my work 5 ! Required information Part 1 of 2 2. Use the horizontal model for the declaration of dividends on December 28, 2020. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) 0.5 points Balance Sheet Income Statement Skipped Assets Liabilities Stockholders' Equity Net Income Revenues Expenses + + еВook Print References 3. Use the horizontal model for the payment of dividends on February 12, 2021. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses + + Mc Graw Hill < Prev 5 6 of 18 Next > > ... II II II II II
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