Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 13, Problem 1BP
Stockholders’ equity transactions and analysis
Weiss Company is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders’ equity during its first year of operations.
Required
- 1. Explain the transaction(s) underlying each
journal entry (a) through (d). - 2. How many shares of common stock are outstanding at year-end?
Check (2) 6,000 shares
- 3. What is the amount of minimum legal capital (based on par value) at year-end?
(3) $6,000
- 4. What is the total paid-in capital at year-end?
(4) $260,000
- 5. What is the book value per share of the common stock at year-end if total paid-in capital plus
retained earnings equals $283,200?
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Statement of Stockholders' Equity
You have been asked to assist with the preparation of a statement of stockholders' equity for Maxx Company for the current year ended December 31.
You determine the following balances:
Beginning-of-year common stock
$5,000
Beginning-of-year retained earnings
7,500
Net income
2,500
Dividends paid
250
Issuance of common stock
400
Prepare a statement of stockholders' equity for Maxx Company for the current year.
Note: Use a negative sign to shown a reduction to the balance.
Махх Сompany
Statement of Stockholders' Equity
For Year Ended December 31
Total
Common
Retained
Stockholders'
Stock
Earnings
Equity
Balance at beginning of year
Issuance of common stock
Net income
Less: Dividends
Balance at end of year
During the year the following selected transactions affecting stockholders' equity occurred for Orlando Corporation:
a. April 1: Repurchased 390 shares of the company's common stock at $38 cash per share.
b. June 14: Sold 70 of the shares purchased on April 1 for $43 cash per share.
c. September 1: Sold 60 of the shares purchased on April 1 for $33 cash per share.
Required:
1. Prepare journal entries for each of the above transactions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Answer is not complete.
No
1
Date
April 01
General Journal
Debit
Credit
Treasury stock
14,820
Cash
14,820
2
June 14
Cash
Treasury stock
Additional paid-in capital
3,010
2,660
350
3
September 01
Cash
1,980
Additional paid-in capital
Treasury stock
300X
1,680 x
Entries for selected corporate transactionsMorrow Enterprises Inc. manufactures bathroom fixtures. The stockholders'equity accounts of Morrow Enterprises Inc., with balances on January 1,20Y5, are as follows:
The following selected transactions occurred during the year:
Instructions
1. Enter the January 1 balances in T accounts for the stockholders'equity accounts listed. Also prepare T accounts for the following: Paidin Capital from Sale of Treasury Stock: Stock Dividends Distributable;Stock Dividends; Cash Dividends.
2. Journalize the entries to record the totions and post to the eightselected accounts.S. Prepare a retained earnings statement for the year ended December1, 20Y5.4. Prepare the Stockholders' Equity section of the December $1, 20Y5,balance sheet using Method 1 of Exhibit 8.
Chapter 13 Solutions
Principles of Financial Accounting.
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Stockholders Equity: How to Calculate?; Author: Accounting University;https://www.youtube.com/watch?v=2jZk1T5GIlw;License: Standard Youtube License