Required information Problem 10-2B (Algo) Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.] Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 125 shares of preferred stock and 2,100 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 Issue 2,100 additional shares of common stock for $16 per share. April 1 Issue 175 additional shares of preferred stock for $31 per share. June 1 Declare a cash dividend on both common and preferred stock of $0.55 per share to all stockholders of record on June 15. Pay the cash dividends declared on June 1. June 30 August 1 Purchase 175 shares of common treasury stock for $13 per share. October 1 Reissue 125 shares of treasury stock purchased on August 1 for $15 per share. Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,250; Common Stock, $2,100; Additional Paid-in Capital, $18,600; and Retained Earnings, $10,600. Net income for the year ended December 31, 2024, is $7,200. Problem 10-2B (Algo) Part 2 2. Select whether each of the following transactions increases (+) or decreases (-) total assets, total liabilities, and total stockholders' equity. (If none of the categories apply for a particular item, leave the cell blank.) Transaction Issue common stock Issue preferred stock Declare cash dividends Pay cash dividends Purchase treasury stock Resell treasury stock Total Total Assets Liabilities Total Stockholders' Equity
Required information Problem 10-2B (Algo) Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.] Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 125 shares of preferred stock and 2,100 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 Issue 2,100 additional shares of common stock for $16 per share. April 1 Issue 175 additional shares of preferred stock for $31 per share. June 1 Declare a cash dividend on both common and preferred stock of $0.55 per share to all stockholders of record on June 15. Pay the cash dividends declared on June 1. June 30 August 1 Purchase 175 shares of common treasury stock for $13 per share. October 1 Reissue 125 shares of treasury stock purchased on August 1 for $15 per share. Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,250; Common Stock, $2,100; Additional Paid-in Capital, $18,600; and Retained Earnings, $10,600. Net income for the year ended December 31, 2024, is $7,200. Problem 10-2B (Algo) Part 2 2. Select whether each of the following transactions increases (+) or decreases (-) total assets, total liabilities, and total stockholders' equity. (If none of the categories apply for a particular item, leave the cell blank.) Transaction Issue common stock Issue preferred stock Declare cash dividends Pay cash dividends Purchase treasury stock Resell treasury stock Total Total Assets Liabilities Total Stockholders' Equity
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...
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![Required information
Problem 10-2B (Algo) Record equity transactions and indicate the effect on the balance sheet equation
(LO10-2, 10-3, 10-4, 10-5)
[The following information applies to the questions displayed below.]
Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024,
125 shares of preferred stock and 2,100 shares of common stock have been issued. The following transactions affect
stockholders' equity during 2024:
March 1
April 1
June 1
Issue 2,100 additional shares of common stock for $16 per share.
Issue 175 additional shares of preferred stock for $31 per share.
Declare a cash dividend on both common and preferred stock of $0.55 per share to all stockholders
of record on June 15.
June 30
Pay the cash dividends declared on June 1.
August 1
Purchase 175 shares of common treasury stock for $13 per share.
October 1 Reissue 125 shares of treasury stock purchased on August 1 for $15 per share.
Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock,
$1,250; Common Stock, $2,100; Additional Paid-in Capital, $18,600; and Retained Earnings, $10,600. Net income for the
year ended December 31, 2024, is $7,200.
Problem 10-2B (Algo) Part 2
2. Select whether each of the following transactions increases (+) or decreases (-) total assets, total liabilities, and total stockholders'
equity. (If none of the categories apply for a particular item, leave the cell blank.)
Transaction
Issue common stock
Issue preferred stock
Declare cash dividends
Pay cash dividends
Purchase treasury stock
Resell treasury stock
Total
Assets
Total
Liabilities
Total
Stockholders'
Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa50d0ec-a15b-459d-9b3f-507562f25b4f%2F17d8b59c-c4e2-4354-853c-8065b79532b3%2Fgrvjips_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 10-2B (Algo) Record equity transactions and indicate the effect on the balance sheet equation
(LO10-2, 10-3, 10-4, 10-5)
[The following information applies to the questions displayed below.]
Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024,
125 shares of preferred stock and 2,100 shares of common stock have been issued. The following transactions affect
stockholders' equity during 2024:
March 1
April 1
June 1
Issue 2,100 additional shares of common stock for $16 per share.
Issue 175 additional shares of preferred stock for $31 per share.
Declare a cash dividend on both common and preferred stock of $0.55 per share to all stockholders
of record on June 15.
June 30
Pay the cash dividends declared on June 1.
August 1
Purchase 175 shares of common treasury stock for $13 per share.
October 1 Reissue 125 shares of treasury stock purchased on August 1 for $15 per share.
Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock,
$1,250; Common Stock, $2,100; Additional Paid-in Capital, $18,600; and Retained Earnings, $10,600. Net income for the
year ended December 31, 2024, is $7,200.
Problem 10-2B (Algo) Part 2
2. Select whether each of the following transactions increases (+) or decreases (-) total assets, total liabilities, and total stockholders'
equity. (If none of the categories apply for a particular item, leave the cell blank.)
Transaction
Issue common stock
Issue preferred stock
Declare cash dividends
Pay cash dividends
Purchase treasury stock
Resell treasury stock
Total
Assets
Total
Liabilities
Total
Stockholders'
Equity
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