On December 31, 2021, Cullumber Company had 1,290,000 shares of $6 par common stock issued and outstanding. At December 31, 2021, stockholders’ equity had the amounts listed here.Common Stock $7,740,000Additional Paid-in Capital 1,760,000Retained Earnings 1,235,000Transactions during 2022 and other information related to stockholders’ equity accounts were as follows.1. On January 10, issued at $106 per share 125,000 shares of $104 par value, 8% cumulative preferred stock.2. On February 8, reacquired 13,200 shares of its common stock for $12 per share.3. On May 9, declared the yearly cash dividend on preferred stock, payable June 10, to stockholders of record on May 31.4. On June 8, declared a cash dividend of $1.05 per share on the common stock outstanding, payable on July 10, to stockholders of record on July 1.5. Net income for 2022 was $3,651,000.

As on 31.12.2021 Common Stock 1290000 share of $6 per Share $ 77,40,000 1290000…

Answered: On December 31, 2021, Cullumber Company…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 10MC

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On December 31, 2021, Cullumber Company had 1,290,000 shares of $6 par common stock issued and outstanding. At December 31, 2021, stockholders’ equity had the amounts listed here.

Common Stock		$7,740,000
Additional Paid-in Capital		1,760,000
Retained Earnings		1,235,000

Transactions during 2022 and other information related to stockholders’ equity accounts were as follows.

1.		On January 10, issued at $106 per share 125,000 shares of $104 par value, 8% cumulative preferred stock.
2.		On February 8, reacquired 13,200 shares of its common stock for $12 per share.
3.		On May 9, declared the yearly cash dividend on preferred stock, payable June 10, to stockholders of record on May 31.
4.		On June 8, declared a cash dividend of $1.05 per share on the common stock outstanding, payable on July 10, to stockholders of record on July 1.
5.		Net income for 2022 was $3,651,000.

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