EBK INTERMEDIATE ACCOUNTING: REPORTING
2nd Edition
ISBN: 9781305727557
Author: PAGACH
Publisher: YUZU
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Chapter 16, Problem 11E
1.
To determine
Compute the statement of shareholder’s equity for the year ended December 31, 2016.
2.
To determine
Calculate the return on stockholder’s equity for the year 2016.
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Captain Morgan Corporation was organized on January 1, 2017. During 2017, Captain had the following transactions relating to shareholders' equity: (1) issued 10,000 shares of common stock at $7 per share; (2) issued 20,000 shares of common stock at $8 per share; (3) reported net income of $100,000 for 2017; (4) paid dividends of $50,000; (5) purchased 3,000 shares of treasury stock at $10 per share. Total shareholders' equity at the end of 2017 is: 1. A) $270,000. 2. B) $300,000. 3. C) $250,000. 4. D) $200,000.
Douglas Corporation had 120,000 shares of stock outstanding on January 1, 2017. On May 1, 2017, Douglas issued 60,000 shares. On July 1, Douglas purchased 10,000 treasury shares, which were reissued on October 1. Compute Douglas’s weighted-average number of shares outstanding for 2017.
(Stockholders’ Equity Section of Balance Sheet) The following is a summary of all relevant transactions of Vicario Corporation since it was organized in 2017.In 2017, 15,000 shares were authorized and 7,000 shares of common stock ($50 par value) were issued at a price of $57. In 2018, 1,000 shares were issued as a stock dividend when the stock was selling for $60. Three hundred shares of common stock were bought in 2019 at a cost of $64 per share. These 300 shares are still in the company treasury.In 2018, 10,000 preferred shares were authorized and the company issued 5,000 of them ($100 par value) at $113. Some of the preferred stock was reacquired by the company and later reissued for $4,700 more than it cost the company.The corporation has earned a total of $610,000 in net income after income taxes and paid out a total of $312,600 in cash dividends since incorporation.
InstructionsPrepare the stockholders’ equity section of the balance sheet in proper form for Vicario Corporation as…
Chapter 16 Solutions
EBK INTERMEDIATE ACCOUNTING: REPORTING
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- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. 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