Required information [The following information applies to the questions displayed below.] Tennis Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 120,000 shares of common stock for $53 per share. Issue 43,000 shares of preferred stock for $13 per share. February 14 May 8 May 31 December 1 Purchase 12,000 shares of its own common stock for $43 per share. Resell 6,000 shares of treasury stock for $48 per share. Declare a cash dividend on its common stock of $0.40 per share and a $17,200 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $473,000. (Amounts to be deducted should be indicated by a minus sign.) TENNIS APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Common Stock Preferred Stock Additional Paid-in Capital Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholders' Equity $ $ 120,000 430,000 550,000 550,000
Required information [The following information applies to the questions displayed below.] Tennis Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 120,000 shares of common stock for $53 per share. Issue 43,000 shares of preferred stock for $13 per share. February 14 May 8 May 31 December 1 Purchase 12,000 shares of its own common stock for $43 per share. Resell 6,000 shares of treasury stock for $48 per share. Declare a cash dividend on its common stock of $0.40 per share and a $17,200 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $473,000. (Amounts to be deducted should be indicated by a minus sign.) TENNIS APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Common Stock Preferred Stock Additional Paid-in Capital Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholders' Equity $ $ 120,000 430,000 550,000 550,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Required information
[The following information applies to the questions displayed below.]
Tennis Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following
transactions affect stockholders' equity during 2024, its first year of operations:
January 2 Issue 120,000 shares of common stock for $53 per share.
Issue 43,000 shares of preferred stock for $13 per share.
February 14
May 8
May 31
December 1
Purchase 12,000 shares of its own common stock for $43 per share.
Resell 6,000 shares of treasury stock for $48 per share.
Declare a cash dividend on its common stock of $0.40 per share and a $17,200 (4% of par value) cash
dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is
payable on December 30. (Hint: Dividends are not paid on treasury stock.)
December 30 Pay the cash dividends declared on December 1.
2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $473,000.
(Amounts to be deducted should be indicated by a minus sign.)
TENNIS APPAREL
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' Equity:
Common Stock
Preferred Stock
Additional Paid-in Capital
Total Paid-in Capital
Retained Earnings
Treasury Stock
Total Stockholders' Equity
$
$
120,000
430,000
550,000
550,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98ba63d6-09a5-41e2-a24a-4cf8627d2346%2F734f0e3b-c68b-42b6-838f-5dd8c8ba958e%2Fp56yz4v_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Tennis Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following
transactions affect stockholders' equity during 2024, its first year of operations:
January 2 Issue 120,000 shares of common stock for $53 per share.
Issue 43,000 shares of preferred stock for $13 per share.
February 14
May 8
May 31
December 1
Purchase 12,000 shares of its own common stock for $43 per share.
Resell 6,000 shares of treasury stock for $48 per share.
Declare a cash dividend on its common stock of $0.40 per share and a $17,200 (4% of par value) cash
dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is
payable on December 30. (Hint: Dividends are not paid on treasury stock.)
December 30 Pay the cash dividends declared on December 1.
2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $473,000.
(Amounts to be deducted should be indicated by a minus sign.)
TENNIS APPAREL
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' Equity:
Common Stock
Preferred Stock
Additional Paid-in Capital
Total Paid-in Capital
Retained Earnings
Treasury Stock
Total Stockholders' Equity
$
$
120,000
430,000
550,000
550,000
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