Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 10, Problem 4SE
1.
To determine
Prepare
2.
To determine
Determine whether the main source of stockholder’s equity for Incorporation B is paid-in capital or profitable operations.
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Direction. Read and understand the case and answer the requirements.
On December 31, 2020, Shipyard, Inc. reported the following stockholders' equity account:
Common Stock, $10 par value
Paid-in Capital in excess of par value, common stock
Retained Earnings
+In 2021, the following entries related to its equity are recorded.
Date
Accounts
Jan.
Feb
Feb
Mar
Dec
17 Retained Earnings
2021
5
28
14
Common Dividend Payable
Common Dividend Payable
Cash
Retained Earnings
Common Stock Dividend Distributable
Paid-in Capital in Excess of Par Value, Common Stock
Common Stock Dividend Distributable
Common Stock, $10 Par Value
31 Income Summary
Retained Earnings
The table shows the equity balances as of December 31, 2021.
Paid-in
capital in
excess of par
Beginning Balance
Dividend declaration
Stock Dividend Declaration
Stock Dividend Distribution
Net Income
Common
Stock
1,000,000
130,000
1,130,000
300,000
Common stock
dividend
distributable
300,000
120,000
120,000
Debit
100,000
100,000
250,000
120,000…
P4-7A. Preparing the Statement of Stockholders' Equity Presented below is financial data for Jason&
Co. as of year-end 2019:
Cash.....
$ 8,500
$(14,000)
Retained earnings, Jan. 1, 2019. .
Intangible assets.
Common stock. ..
Accounts payable. . ..
Dividends paid. ..
17,000
25,000
50,000
4,000
Accumulated depreciation . .
Net income.. .
Stockholders' equity, Jan. 1, 2019... . ..
Retained earnings, Dec. 31, 2019.. . . .38,000
Stockholders' equity, Dec. 31, 2019. . . . 88,000
Building....
35,000
67,000
...
14,000
72,500
Required
Prepare a statement of stockholders' equity for Jason & Co. as of December 31, 2019.
Required:
1. Prepare journal entries to record the declaration and payment of these stock and cash dividends.
2. Prepare the December 31, 2024, shareholders' equity section of the balance sheet for the Nicklaus Corporation. (Assume net income for the fourth quarter was
$3,000,000.)
3. Prepare a statement of shareholders' equity for Nicklaus Corporation for 2024.
Chapter 10 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 10 - What are the four baste rights of stockholders?Ch. 10 - Assume you are a CFO of a company that is...Ch. 10 - Prob. 3DQCh. 10 - What accounts, if any, are involved in the journal...Ch. 10 - With which type of stock would dividends in...Ch. 10 - What accounts are affected by the declaration and...Ch. 10 - What are some of the reasons for issuing a stock...Ch. 10 - Prob. 8DQCh. 10 - What could you reasonably conclude if a company...Ch. 10 - Prob. 10DQ
Ch. 10 - Prob. 1SCCh. 10 - Prob. 2SCCh. 10 - Prob. 3SCCh. 10 - Prob. 4SCCh. 10 - Prob. 5SCCh. 10 - Prob. 6SCCh. 10 - Prob. 7SCCh. 10 - Prob. 8SCCh. 10 - Prob. 9SCCh. 10 - Prob. 10SCCh. 10 - Prob. 11SCCh. 10 - Prob. 12SCCh. 10 - Stockholders' equity terminology (Learning...Ch. 10 - Stock issuance (Learning Objective 3) 5-10 min....Ch. 10 - Issuance of stock for cash and noncash assets...Ch. 10 - Prob. 4SECh. 10 - Prob. 5SECh. 10 - Prob. 6SECh. 10 - Prob. 7SECh. 10 - Accounting for cash dividends (Learning Objective...Ch. 10 - Prob. 9SECh. 10 - Prob. 10SECh. 10 - Prob. 11SECh. 10 - Prob. 12SECh. 10 - Prob. 13SECh. 10 - Prob. 14SECh. 10 - Prob. 15AECh. 10 - Issuing stock (Learning Objectives 3 7) 10-15 min....Ch. 10 - Prob. 17AECh. 10 - Prob. 18AECh. 10 - Prob. 19AECh. 10 - Accounting for cash dividends (Learning Objective...Ch. 10 - Prob. 21AECh. 10 - Accounting for cash and stock dividends (Learning...Ch. 10 - Prob. 23AECh. 10 - Prob. 24AECh. 10 - Prob. 25AECh. 10 - Accounting for treasury stock (Learning Objectives...Ch. 10 - Prob. 27AECh. 10 - Prob. 28AECh. 10 - Prob. 29AECh. 10 - Calculating return on equity (Learning Objective...Ch. 10 - Prob. 31BECh. 10 - Prob. 32BECh. 10 - Prob. 33BECh. 10 - Prob. 34BECh. 10 - Prob. 35BECh. 10 - Prob. 36BECh. 10 - Accounting for stock dividends (Learning...Ch. 10 - Accounting for cash and stock dividends (Learning...Ch. 10 - Prob. 39BECh. 10 - Prob. 40BECh. 10 - Accounting for treasury stock (Learning Objectives...Ch. 10 - Prob. 42BECh. 10 - Disclosing stockholders equity on a balance sheet...Ch. 10 - Accounting for various stockholders' equity...Ch. 10 - Prob. 45BECh. 10 - Prob. 46BECh. 10 - Prob. 47APCh. 10 - Analyzing stockholders equity (Learning Objectives...Ch. 10 - Analyzing stockholders equity (Learning Objectives...Ch. 10 - Accounting for cash dividends (Learning Objective...Ch. 10 - Accounting for various stockholders equity...Ch. 10 - Prob. 52APCh. 10 - Prob. 53APCh. 10 - Prob. 54BPCh. 10 - Prob. 55BPCh. 10 - Analyzing stockholders equity (Learning Objectives...Ch. 10 - Accounting for cash dividends (Learning Objective...Ch. 10 - Prob. 58BPCh. 10 - Prob. 59BPCh. 10 - Prob. 60BPCh. 10 - Prob. 1CECh. 10 - Continuing Problem This problem continues our...Ch. 10 - Prob. 1EIACh. 10 - Case 2. The board of directors for Atlantic...Ch. 10 - Financial Analysis Purpose: To help familiarize...Ch. 10 - Prob. 1IACh. 10 - Prob. 1SBACh. 10 - Written Communication You just got off the...
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