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 60BP
1.
To determine
Determine the par value of the common stock.
2.
To determine
Ascertain the price at which Incorporation P 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
Journalizing dividend and treasury stock transactions, preparing a statement of retained earnings, and preparing stockholders’ equity
The balance sheet of Goldstein Management Consulting, Inc. at December 31, 2017, reported the following stockholders’ equity:
During 2018, Goldstcin completed thc Following selected transactions:
Requirements
Record the transactions in the general journal.
Prepare a retained earnings statement for the year ended December 31, 2018. Assume Goldstein’s net income for the year was $90,000.
Prepare the stockholders’ equity section of the balance sheet at December 31, 2018.
The following events occurred Gargantuan's first year of operations:
1. Acquired $36,000 cash from the issue of common stock on January 1, 2018.
2. Purchased $1,600 of supplies on account.
3. Paid $6,120 cash in advance for a one-year lease on office space.
4. Earned $44,350 of revenue on account.
5. Incurred $14,900 of other operating expenses on account.
6. Collected $32,000 cash from accounts receivable.
7. Paid $9,800 cash on accounts payable.
8. Paid a $4,600 cash dividend to the stockholders.
Adjusting Entries information
9. There was $310 of supplies on hand at the end of the accounting period.
0. The lease on the office space covered a one-year period beginning November 1.
11. There was $5,200 of accrued salaries at the end of the period.
Check my work
Casello Mowing & Landscaping's year-end 2018 balance sheet lists current assets of $435,200, fixed assets of $550,800, current
liabilities of $416.600, and long-term debt of $314,500.
Calculate Casello's total stockholders' equity. (Enter your answer In dollars. Round your answer to the nearest dollar amount.)
Total stockholders' equity
Prev
1 of 5
Next >
12:15 PM
62°F Mostly cloudy E
10/30/2021
pe here to search
DEL
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
- 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 $32,000 for the month. Print Donearrow_forwardAssume the following is the stockholders' equity section from the Abercrombie & Fitch balance sheet. Assume the following is the 2016 stockholders' equity section from the Cisco Systems, Inc., balance sheet. Shareholders’ Equity ($ 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_forwardCompute Beginning stockholders' equity. Beginning stockholders' equity $ Ending stockholders' equity 49,400 Issuance of stock 6,000 Net income 11,400 Dividends 2,600arrow_forward
- Preparing 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 $arrow_forwardThe financial statements of Friendly Fashions include the following selected data (in millions):($ 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_forward4. 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.arrow_forward
- Two online magazine companies reported the following in their financial statements: Outdoor Fun BetterWorth 2020 $ 171,173 417,049 2.98 57.20 2021 2020 $ 105,000 537,186 1.80 52.40 2021 $ 85,500 397,151 1.10 30.05 $ 107,604 462,814 Net income Total stockholders' Earnings per share Stock price when annual results reported equity 2.19 48.54 Required: 1-a. Compute the 2021 ROE for each company. 1-b. Which company appears to generate greater returns on stockholders' equity in 2021? 2-a. Compute the 2021 P/E ratio for each company. 2-b. Which company do investors appear to value more? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the 2021 ROE for each company. (Round your answers to 1 decimal place.) ROE Outdoor Fun % BetterWorth %arrow_forwardJournalizing dividends and treasury stock transactions and preparing the stockholders’ equity section of the balance sheet Deerborn Manufacturing Co. completed the following transactions during 2018: Requirements Record the transactions in Deerborn’s general journal. Prepare the Deerborn’s stockholders’ equity section of the balance sheet as of December 31, 2018. Assume that Deerborn was authorized to issue 2,600 shares of preferred stock and 400,000 shares of common stock. Both preferred stock and Common stock were issued at par. The ending balance of retained earnings as of December 31, 2018, is $2,060,000.arrow_forwardeporting Stockholders’ Equity The following data are from the accounts of Mitar Corporation at December 31, 2020 ($ 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_forward
- The 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_forwardE13-26 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_forwardCurrent Attempt in Progress The following financial information is available for Monty Corporation. (in millions) Average common stockholders' equity Dividends declared for common stockholders Dividends declared for preferred stockholders Net income (a1) Payout ratio Return on common stockholders' equity 2025 e Textbook and Media $2,500 300 30 500 2024 $2,600 Calculate the payout ratio and return on common stockholders' equity for 2025 and 2024. (Round answers to 1 decimal place, e.g. 12.5%) 638 2025 30 550 % % 2024 % %arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License