Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 26P
Problem 8-26
Choctaw Co. completed the following transactions in 2018, the first year of operation:
- 1. Issued 20,000 shares of $10 par common stock for $10 per share.
- 2. Issued 3,000 shares of $20 stated value
preferred stock for $20 per share. - 3. Purchased 1,000 shares of common stock as treasury stock for $12 per share.
- 4. Declared a $2,000 cash dividend on preferred stock.
- 5. Sold 500 shares of treasury stock for $14 per share.
- 6. Paid $2,000 cash for the preferred dividend declared in Event 4.
- 7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000.
- 8. Appropriated $8,000 of retained earnings.
Required
- a. Organize the transaction in accounts under an
accounting equation. - b. Prepare the stockholders’ equity section of the
balance sheet as of December 31, 2018.
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Problem 8-26 Treasury stock transactions and appropriation of retained earnings
Choctaw Co. completed the following transactions in 2018, the first year of operation:
1. Issued 20,000 shares of $10 par common stock for $10 per share.
2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share.
3. Purchased 1,000 shares of common stock as treasury stock for $12 per
share.
4. Declared a $2,000 cash dividend on preferred stock.
5. Sold 500 shares of treasury stock for $14 per share.
6. Paid $2,000 cash for the preferred dividend declared in Event 4.
7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000.
8. Appropriated $8,000 of retained earnings.
Required
Prepare the stockholders' equity section of the balance sheet as of December 31,
2018.
view Policies
Current Attempt in Progress
Marigold Corporation was organized on January 1, 2025. It is authorized to issue 11,000 shares of 8%, $100 par value preferred stock,
and 535,600 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed
during the first year.
Jan. 10
Issued 80,370 shares of common stock for cash at $6 per share.
Issued 5,570 shares of preferred stock for cash at $110 per share.
Issued 24,250 shares of common stock for land. The asking price of the land was $91,730; the fair value of the land
was $80,370.
Issued 80,370 shares of common stock for cash at $8 per share.
Issued 11,000 shares of common stock to attorneys in payment of their bill of $54,600 for services rendered in
helping the company organize.
Sept. 1
Issued 11,000 shares of common stock for cash at $10 per share.
Nov. 1 Issued 1,100 shares of preferred stock for cash at $115 per share.
Mar. 1
Apr. 1
May
Aug.
1
1
Prepare the journal entries to…
Identifying and Analyzing Financial Statement
Effects of Cash Dividends
On March 15, 2018, Bank of America issued
94,000 shares of 5.875% Fixed-to-Floating Rate
Non-Cumulative Preferred Stock, Series FF for
$2.35 billion. Dividends are payable semiannually
on or about March 15 and September 15.
a. Assume the stock was issued at face value.
What is the face value of each Series FF share?
$
25,000
b. What will be the total dividend for the year
ended December 31, 2018, assuming that the
number of shares remains unchanged?
Enter answer in millions. Round answer to the
nearest million.
$
110
× million
Chapter 8 Solutions
Survey Of Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - 5. What is the purpose of the articles of...Ch. 8 - 6. What is the function of the stock certificate?Ch. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - 9. What is a limited liability company? Discuss...Ch. 8 - Prob. 10Q
Ch. 8 - 11. What is the difference between contributed...Ch. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - 14. What is the meaning of each of the following...Ch. 8 - 15. What is the difference between cumulative...Ch. 8 - 16. What is no-par stock? How is it recorded in...Ch. 8 - 17. Assume that Best Co. has issued and...Ch. 8 - 18. If Best Co. issued 10,000 shares of 20 par...Ch. 8 - 19. What is the difference between par value stock...Ch. 8 - 20. Why might a company repurchase its own stock?Ch. 8 - 21. What effect does the purchase of treasury...Ch. 8 - 22. Assume that Day Company repurchased 1,000 of...Ch. 8 - 23. What is the importance of the declaration...Ch. 8 - 24. What is the difference between a stock...Ch. 8 - 25. Why would a company choose to distribute a...Ch. 8 - 26. What is the primary reason that a company...Ch. 8 - 27. If Best Co. had 10,000 shares of 20 par value...Ch. 8 - 28. When a company appropriates retained earnings,...Ch. 8 - Prob. 29QCh. 8 - Prob. 30QCh. 8 - Prob. 31QCh. 8 - 32. What are some reasons that a corporation might...Ch. 8 - Prob. 1ECh. 8 - Exercise 8-2 Effect of accounting events on the...Ch. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Exercise 8-5 Characteristics of capital stock The...Ch. 8 - Exercise 8-6 Effect of issuing common stock on the...Ch. 8 - Exercise 8-7 Recording and reporting common and...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Exercise 8-13 Recording and reporting treasury...Ch. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19PCh. 8 - Problem 8-20 Effect of business structure on...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Problem 8-23 Recording and reporting stock...Ch. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Problem 8-26 Treasury stock transactions and...Ch. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 1ATCCh. 8 - ATC 8-3 Research Assignment Analyzing Skecherss...Ch. 8 - Prob. 4ATCCh. 8 - ATC 11-7 Ethical Dilemma Bad news versus very bad...
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