DeZurik Corp. had the following stockholders' equity section in its June 30, 2019, balance sheet (in thousands, except share and per share amounts): Paid-in capital: $4.9 Preferred stock, $? par value, cumulative, 40,000 shares authorized, 28,000 shares issued and outstanding Common stock, $4 par value, 4,000,000 shares authorized, 830,000 shares issued, 726,000 shares outstanding Additional paid-in capital on common stock Retained earnings Less: Treasury common stock, at cost, 2 shares Total stockholders' equity June 30 (in thousands) 2019 $ 1,430 5,370 $ 15,490 Required: a. Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage. b. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2019. c. What was the average issue price of common stock shown on the June 30, 2019, balance sheet? d. How many shares of treasury stock does DeZurik Corp. own at June 30, 2019? e. Assume that the treasury shares were purchased for $18 per share. Calculate the amount that should be shown on the balance sheet for treasury stock at June 30, 2019. 1. Calculate the retained earnings balance at June 30, 2019, after you have completed parts a-e. (Hint: Keep in mind that Treasury Stock is a contra account.)
DeZurik Corp. had the following stockholders' equity section in its June 30, 2019, balance sheet (in thousands, except share and per share amounts): Paid-in capital: $4.9 Preferred stock, $? par value, cumulative, 40,000 shares authorized, 28,000 shares issued and outstanding Common stock, $4 par value, 4,000,000 shares authorized, 830,000 shares issued, 726,000 shares outstanding Additional paid-in capital on common stock Retained earnings Less: Treasury common stock, at cost, 2 shares Total stockholders' equity June 30 (in thousands) 2019 $ 1,430 5,370 $ 15,490 Required: a. Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage. b. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2019. c. What was the average issue price of common stock shown on the June 30, 2019, balance sheet? d. How many shares of treasury stock does DeZurik Corp. own at June 30, 2019? e. Assume that the treasury shares were purchased for $18 per share. Calculate the amount that should be shown on the balance sheet for treasury stock at June 30, 2019. 1. Calculate the retained earnings balance at June 30, 2019, after you have completed parts a-e. (Hint: Keep in mind that Treasury Stock is a contra account.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:DeZurik Corp. had the following stockholders' equity section in its June 30, 2019, balance sheet (in thousands, except share and per
share amounts):
Paid-in capital:
$4.9 Preferred stock, $ 2 par value, cumulative, 40,000 shares authorized,
28,000 shares issued and outstanding
Common stock, $4 par value, 4,000,000 shares authorized, 830,000 shares
issued, 726,000 shares outstanding
Additional paid-in capital on common stock
Retained earnings
Less: Treasury common stock, at cost, 2 shares
Total stockholders' equity
Complete this question by entering your answers in the tabs below.
Req A
Required:
a. Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage.
b. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2019.
Req B to D Req E to F
c. What was the average issue price of common stock shown on the June 30, 2019, balance sheet?
d. How many shares of treasury stock does DeZurik Corp. own at June 30, 2019?
e. Assume that the treasury shares were purchased for $18 per share. Calculate the amount that should be shown on the balance
sheet for treasury stock at June 30, 2019.
1. Calculate the retained earnings balance at June 30, 2019, after you have completed parts a-e. (Hint: Keep in mind that Treasury
Stock is a contra account.)
Par value per share of preferred stock
Preferred stock dividend percentage
June 30
(in thousands)
2019
%
$ 1,430
< Req A
5,370
Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage. (Round your
answers to 2 decimal places. (e.g., 32.16))
Req B to D >
$ 15,490
Transcribed Image Text:DeZurik Corp. had the following stockholders' equity section in its June 30, 2019, balance sheet (in thousands, except share and per
share amounts):
Paid-in capital:
$4.9 Preferred stock, $? par value, cumulative, 40,000 shares authorized,
28,000 shares issued and outstanding
Common stock, $4 par value, 4,000,000 shares authorized, 830,000 shares
issued, 726,000 shares outstanding
Additional paid-in capital on common stock
Retained earnings
Less: Treasury common stock, at cost, 2 shares
Total stockholders' equity
Complete this question by entering your answers in the tabs below.
Req A
Req B to D
Required:
a. Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage.
b. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2019.
c. What was the average issue price of common stock shown on the June 30, 2019, balance sheet?
d. How many shares of treasury stock does DeZurik Corp. own at June 30, 2019?
e. Assume that the treasury shares were purchased for $18 per share. Calculate the amount that should be shown on the balance
sheet for treasury stock at June 30, 2019.
1. Calculate the retained earnings balance at June 30, 2019, after you have completed parts a-e. (Hint: Keep in mind that Treasury
Stock is a contra account.)
b. Balance sheet amount for common stock
c. Average issue price of common stock
d. Treasury shares
June 30
(in thousands)
2019
Req E to F
b. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2019. (Enter your answer
in thousands of dollars.)
c. What was the average issue price of common stock shown on the June 30, 2019, balance sheet? (Round your answer to 2
decimal places. (e.g., 32.16))
d. How many shares of treasury stock does DeZurik Corp. own at June 30, 2019.
< Req A
$ 1,430
Req E to F >
5,370
$ 15,490
Show less A
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