Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 10, Problem 53AP
1.
To determine
Determine the par value of the common stock.
2.
To determine
Determine the price at which Incorporation L issued its common stock during the year.
3.
To determine
Determine the cost of
4.
To determine
Determine the overall effect of stock dividend on the total stockholders’ equity.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Presented below are data for Blue Corp.
Assets, January 1
Liabilities, January 1
Stockholders' Equity, Jan. 1
Dividends
Common Stock
Stockholders' Equity, Dec. 31
Net Income
2025
O $5919.
O $3994.
O $4305.
O $5772.
$8852
4858
1614
1467
Stockholders' Equity at January 1, 2026 is
?
1925
2026
$9728
1221
1288
1286
Requirement 2. Prepare the stockholders' equity section of the WPAC - TV balance sheet at September 30, 2024, assuming WPAC-TV, Inc. had net income of $32,000 for the month.
WPAC-TV, Inc.
Balance Sheet (Partial)
September 30, 2024
Stockholders' Equity
Paid-In Capital:
Total Paid-In Capital
Total Stockholders' Equity
More info
Sep. 6
Sep. 12
Sep. 14
Issued 225 shares of common stock to the promoters who organized the corporation, receiving
cash of $6,750.
Issued 450 shares of preferred stock for cash of $21,000.
Issued 1,900 shares of common stock in exchange for land with a market value of $22,000.
Assume WPAC - TV, Inc. had net income of $32,000 for the month.
Print
Done
4. Notebook Company had the following transactions in 2019, its first year of operations.
Issued 2,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $50.00 per share.
Issued 100 shares of $100 par value preferred stock. Shares were issued at par.
Earned net income of $95,000.
Paid dividends of $5,000.
At the end of 2019, prepare the stockholders’ Equity section.
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...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- E13-26 Journalizing issuance of stock and treasury stock transactions Learning Objectives 2, 3 May 22 Treasury Stock $16,900 Stock transactions for Careful Driving School, Inc. follow: Mar. 4 Issued 27,000 shares of $1 par value common stock at $10 per share. May 22 Purchased 1,300 shares of treasury stock-common at $13 per share. Sep. Sold 500 shares of treasury stock-common at $23 per share. 22 Oct. 14 Sold 800 shares of treasury stock-common at $9 per share. Journalize the transactions.arrow_forwardThe financial statements of Friendly Fashions include the following selected data (in millions):($ in millions) 2021 2020Sales $ 10,043 $ 11,134Net income $ 312 $ 818Stockholders’ equity $ 1,850 $ 2,310Average shares outstanding (in millions) 675 –Dividends per share $ 0.31 –Stock price $ 6.20 –Required:1. Calculate the return on equity in 2021.2. Calculate the dividend yield in 2021.3. Calculate earnings per share in 2021.4. Calculate the price-earnings ratio in 2021.arrow_forwardPreparing a Stockholders' Equity Section On December 31, 2020, Polar Inc. had the following account balances. Preferred stock, $10 par value $300,000 Paid in capital in excess of par-Preferred stock 24,000 Common stock, $1 par value 16,000 Paid in capital in excess of par-Common stock 80,000 Retained earnings 440,000 Accumulated other comprehensive loss (12,000) Prepare the stockholders' equity section of the balance sheet for Polar Inc. at December 31, 2020. Ignore disclosure on number of shares. Stockholders' Equity Section December 31, 2020 Preferred stock, par $10 Common stock, par $1 Paid-in capital in excess of par Retained earnings Accumulated other comprehensive loss Total stockholders' equity $arrow_forward
- Compute Beginning stockholders' equity. Beginning stockholders' equity $ Ending stockholders' equity 49,400 Issuance of stock 6,000 Net income 11,400 Dividends 2,600arrow_forwardThe following comparative statements of stockholders’ equity are prepared for Nolan Corporation: Jan.1,2015 Jan.1,2017 Jan.1,2019 Common stock ($10 par). . . . . . . $300,000 $300,000 $300,000 Paid-in capital in excess of par . . . 60,000 60,000 60,000 Retained earnings . . . . . . . . . . . . . . . 42,000 120,000 Total . . . . . . . . . . . . . . . . . . . . . . . . . .$360,000 $402,000 $480,000 Less treasury stock (at cost) . . . . (75,000) (75,000) Total stockholders’ equity. . . . . . $360,000 $327,000 $405,000 Tarman Corporation acquires 60% of Nolan Corporation common stock for $12 per share on January 1, 2015, when the latter corporation is formed. On January 1, 2017, Nolan Corporation purchases 5,000 shares of its own common stock from…arrow_forwardReporting Stockholders' Equity Using the following accounts and balances, prepare the Stockholders' Equity se Common Stock, $70 par $5,600,000 Paid-In Capital from Sale of Treasury Stock 112,000 Paid-In Capital in Excess of Par-Common Stock 2,160,000 Retained Earnings 2,800,000 Treasury Stock 67,000 Stockholders' Equity Paid-in capital: Total Paid-In Capital Total Stockholders' Equityarrow_forward
- Assume the following is the stockholders' equity section from the Abercrombie & Fitch balance sheet. Assume the following is the 2016 stockholders' equity section from the Cisco Systems, Inc., balance sheet. Shareholders’ Equity ($ thousands) January 30, 2016 January 31, 2015 Class A common stock-$0.01 par value: 150,000,000 shares authorized and 103,300,000 shares issued at January 30, 2016 and January 31, 2015, respectively/td> $1,033 $1,033 Paid-in capital 161,678 140,251 Retained Earnings 1,357,791 1,076,023 Accumulated other comprehensive income (796) - Deferred compensation 26,206 15,048 Treasury stock at average cost: 15,573,789 and 17,262,943 shares at January 30, 2016 and January 31, 2015, respectively (550,795) (563,029) Total shareholders’ equity $995,117 $669,326 For the $22,394 million reported as “common stock and additional paid-in capital,” what portion is common stock? How many shares are outstanding at its 2016 fiscal year-end?arrow_forwardeporting Stockholders’ Equity The following data are from the accounts of Mitar Corporation at December 31, 2020 ($ thousands). Retained earnings, beginning balance $2,520,000 Common stock, $__ par, 280,000 shares authorized, 140,000 shares issued 2,800,000 Treasury stock, 2,800 shares 56,000 Paid-in capital in excess of par 1,120,000 Bonds payable 560,000 Net income for 2020 (not included in retained earnings above) 532,000 Dividends declared and paid during 2020 (not included in retained earnings above) 224,000 Required a. Determine the value of the following items. 1. Total retained earnings at end of 2020 Answer 2. Par value per share Answer 3. Number of shares outstanding Answer 4. Total stockholders’ equity Answer 5. Average original selling price per share Answer 6. Cost per share of treasury stock Answer b. Prepare the stockholders’ equity section of the balance sheet at December 31, 2020. Stockholders'…arrow_forwardAccounting, Analysis, and Principles On January 1, 2020, Agassi Corporation had the following stockholders’ equity accounts. Common Stock ($10 par value, 55,000 shares issued and outstanding) $550,000 Paid-in Capital in Excess of Par—Common Stock 510,000 Retained Earnings 629,000 During 2020, the following transactions occurred. Jan. 15 Declared and paid a $1.05 cash dividend per share to stockholders. Apr. 15 Declared and paid a 10% stock dividend. The market price of the stock was $13 per share. May 15 Reacquired 2,100 common shares at a market price of $15 per share. Nov. 15 Reissued 1,050 shares held in treasury at a price of $18 per share. Dec. 31 Determined that net income for the year was $370,000. (a1) Journalize the above transactions. (Include entries to close net income to Retained Earnings.) (Credit account titles are automatically indented when the amount is…arrow_forward
- Answer by fallowing the table format United Apparel has the following balances in its stockholders' equity accounts on December 31, 2024: Treasury Stock, $810,000; Common Stock, $560,000; Preferred Stock, $3,200,000; Retained Earnings, $2,000,000; and Additional Paid-in Capital, $8,400,000.Required:Prepare the stockholders' equity section of the balance sheet for United Apparel as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.)arrow_forwardReporting Stockholders’ Equity The following data are from the accounts of Mitar Corporation at December 31, 2020 ($ thousands). Retained earnings, beginning balance $2,520,000 Common stock, $__ par, 280,000 shares authorized, 140,000 shares issued 2,800,000 Treasury stock, 2,800 shares 56,000 Paid-in capital in excess of par 1,120,000 Bonds payable 560,000 Net income for 2020 (not included in retained earnings above) 532,000 Dividends declared and paid during 2020 (not included in retained earnings above) 224,000 Required a. Determine the value of the following items. 4. Total stockholders’ equity Answer 5. Average original selling price per share Answer b. Prepare the stockholders’ equity section of the balance sheet at December 31, 2020. Stockholders' Equity SectionDecember 31, 2020 Treasury stock Answer Total stockholders' equity Answerarrow_forwardLearning Objective 6: Report stockholders’ equity) Lima Corp. has the followingstockholders’ equity information:Lima’s charter authorizes the company to issue 4,000 shares of 11% preferred stock withpar value of $200 and 700,000 shares of no-par common stock. The company issued 1,000shares of the preferred stock at $200 per share. It issued 350,000 shares of the common stockfor a total of $512,000. The company’s retained earnings balance at the beginning of 2018 was$75,000, and net income for the year was $100,000. During 2018, Lima declared the specifieddividend on preferred and a $0.10 per-share dividend on common. Preferred dividends for 2017were in arrears.Requirement1. Prepare the stockholders’ equity section of Lima Corp.’s balance sheet at December 31,2018. Show the computation of all amounts. Journal entries are not required.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License