Herrera Manufacturing Corporation completed the following transactions during its first year of operation, 2019: The state authorized the issuance of 30,000 shares of $5 par common stock; 15,000 shares were issued at $22 per share. The state authorized the issuance of 6,000 shares of $50 par preferred stock. All 6,000 shares were issued at $70 per share. Herrera reacquired 1,000 shares of its outstanding common stock at $18 per share. The cost method is used to account for treasury stock. Herrera invested $50,000 of excess cash, not needed to finance operations, in long-term available-for-sale debt securities. At year-end, the market value of these securities was $47,500. Herrera sold 500 shares of treasury stock for $23 per share. Net income for the first year of operations was $16,000. No dividends were declared. Required: Prepare the shareholders' equity section of Herrera's balance sheet as of December 31, 2019.

Buffalo Ltd. issues 8,700, $5 cumulative preferred shares at $62 each and 15,000 common shares at $30 each at the beginning of 2019. Each preferred share is convertible into two common shares. The appropriate preferred share dividend was declared and paid in 2019. During the years 2020 and 2021, the following transactions affected Buffalo's shareholders' equity accounts: 2020       Jan. 10   Paid $11,000 of annual dividends to preferred shareholders. 2021       Jan. 10   Paid annual dividend to preferred shareholders and a $3,400 dividend to common shareholders. Mar. 1   The preferred shares were converted into common shares. Journalize each of the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2020Jan . 10                 (To record preferred…

Kress Products' corporate charter authorized the firm to sell 800,000 shares of $10 par common stock. At the beginning of 2019, Kress sold 262,900 shares and reacquired 1,650 of those shares. The reacquired shares were held as treasury stock. During 2019, Kress sold an additional 16,300 shares and purchased 3,100 more treasury shares. Required: Determine the number of issued and outstanding shares at December 31, 2019. Issued shares shares Outstanding shares shares

Edward Corporation is authorized to issue 100,000 shares of $1 par value common stock. During 2021, Edward Corporation took part in the following selected transactions. Prepare journal entry(entries) for following independent event.   1. Purchased 10,000 shares of treasury stock at $50 per share. The treasury shares purchased were issued in 2019 at $31 per share. Assuming Edward uses the retirement method to prepare entry and before this transaction the company had $120,000 credit balance of Paid-in capital – shares repurchase and $1,500,000 retained earnings.   2. The board votes a 3-for-1 stock split. At the date, the market value is $52.    3. The board votes a 120% stock dividend. At the date, the market value is $55, assuming the company treats the distribution as "large" stock dividends effected in the form of a stock dividend and before this transaction the company has 330,000 shares of common stock.

On April 1, 2019, Kelly Corporation began operations and authorized 100,000 shares of $5 par value common stock. The company engaged in the following transactions:April 1 Issued 20,000 shares of common stock for $200,000.April 15 Issued 10,000 shares of common stock for $125,000.May 12 Purchased 2,500 shares of common stock for $75,000.June 30 The board of directors declared a $0.20 per share cash dividend to be paid on July 15 to shareholders of record on July 51. Prepare journal entries for the above transactions.2. Prepared the stockholders’ equity section of Kelly Corporation’s balance sheet as of June 30, 2019. Net income for the period April 1 through June 30 was $150,000.3. What effect, if any, will the cash dividend declaration on June 30 have on Kelly Corporation’s net income, retained earnings, and cash flows?

Crane Ltd. began operations on January 2, 2024. During the year, the following transactions affected shareholders' equity: 1. Crane's articles of incorporation authorize the issuance of 2.5 million common shares and the issuance of 253,000 preferred shares, the latter of which pay an annual dividend of $3.0 per share. 2. A total of 303,000 common shares were issued for $6 a share, 3. A total of 35,000 preferred shares were issued for $10 per share. 4. The full annual dividend on the preferred shares was declared. 5. The dividend on the preferred shares was paid. 6. A dividend of $0.12 per share was declared on the common shares but was not yet paid. 7. The company had net income of $170,000 for the year. (Assume sales of $500,000 and total operating expenses of $330,000.) 8. The dividends on the common shares were paid. 9. The closing entry for the Dividends Declared account was prepared.

On January 5, 2020, Buffalo Corporation received a charter granting the right to issue 5,500 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 46,300 shares of $10 par value common stock. It then completed these transactions. Dec. 31   Declared a $0.25 per share cash dividend on the common stock and declared the preferred dividend. Record the journal entry for the transaction listed above.