Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 8, Problem 45EB
1.
To determine
Identify number of common stocks are issued.
2.
To determine
Identify number of common stocks are outstanding.
3.
To determine
Identify number of preferred stocks are outstanding.
4.
To determine
Determine the average selling price of a share of common stock.
5.
To determine
Determine the amount of cash dividend would be paid to common shareholders.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 2, is as follows.
Note: The market value per share of the common stock is $38, and the market value per share of the preferred stock is $18.
Required
What is the par value per share of the preferred stock?
What is the dividend per share on the preferred stock?
What is the number of common stock shares outstanding?
What was the average issue price per share (price for which the stock was issued) of the common stock?
If Mann Equipment Company declared a 2-for-1 stock split on the common stock, how many shares would be outstanding after the split? What amount would be transferred from the Retained Earnings account because of the stock split? Theoretically, what would be the market price of the common stock immediately after the stock split?
Stockholders’ Equity
Paid-in capital
Preferred stock, ? par value, 5% cumulative,
160,000 shares…
10. At December 31, 2015, the records of Kosme Corporation provided the following:
(see attached image for the given. someone already answer letter a to c, so please answer letter d to g. Please. thank you so much!!)
Direction:d. Give the earnings per share. ___ Round your answer to two decimal places.e. Amount of dividends paid during 2015. ___f. Amount of treasury shares reported in the stockholders' equity ___g. Amount of free retained earnings on December 31. ___
Assume this is the stockholders' equity section from the Campbell Soup Company balance sheet.
How do you get these two questions?
1. At what average price were the Campbell Soup shares issued? (Round your answer to two decimal places.)
2. Calculate and interpret the company’s market-to-book ratio at August 1, 2008. Round answer to two decimal places.
Shareholders' Equity (millions, except per share amounts)
August 3, 2008
July 29, 2007
Preferred stock: authorized 40 shares; non issued
$ --
$ --
Capital stock, $0.0375 par value; authorized 560 shares; issued 512 shares
19
19
Additional paid-in capital
337
331
Earnings retained in the business
7,906
7,052
Capital stock in treasury, 186 shares in 2008 and 163 shares in 2007, at cost
(6,812)
(6,015)
Accumulated other comprehensive loss
(136)
(123)
Total shareholders' equity
$ 1,314
$ 1,264
Assume Campbell Soup Company also reports the following statement of stockholders' equity.
(Millions, except per share…
Chapter 8 Solutions
Financial Accounting
Ch. 8 - Prob. 1YTCh. 8 - Prob. 2YTCh. 8 - Prob. 3YTCh. 8 - Prob. 4YTCh. 8 - 1. Compare a stock split and a stock dividend. 2....Ch. 8 - Prob. 6YTCh. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4Q
Ch. 8 - Prob. 5QCh. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10QCh. 8 - Prob. 11QCh. 8 - Would treasury stock be considered authorized,...Ch. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - What are the two sections of the shareholders...Ch. 8 - Prob. 17QCh. 8 - Prob. 18QCh. 8 - Prob. 19QCh. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Treasury stock is a. a companys own stock that it...Ch. 8 - Prob. 4MCQCh. 8 - Prob. 5MCQCh. 8 - Prob. 6MCQCh. 8 - The number of shares of stock designated as issued...Ch. 8 - Prob. 8MCQCh. 8 - Prob. 9MCQCh. 8 - Prob. 10MCQCh. 8 - Prob. 1SEACh. 8 - Prob. 2SEACh. 8 - Prob. 3SEACh. 8 - Prob. 4SEACh. 8 - Prob. 5SEACh. 8 - Prob. 6SEACh. 8 - Prob. 7SEACh. 8 - Prob. 8SEACh. 8 - Prob. 9SEACh. 8 - Calculate retained earnings balance. (LO 5)....Ch. 8 - Prob. 11SEACh. 8 - Prob. 12SEBCh. 8 - Prob. 13SEBCh. 8 - Prob. 14SEBCh. 8 - Prob. 15SEBCh. 8 - Prob. 16SEBCh. 8 - Prob. 17SEBCh. 8 - Prob. 18SEBCh. 8 - Prob. 19SEBCh. 8 - Prob. 20SEBCh. 8 - Prob. 21SEBCh. 8 - Prob. 22SEBCh. 8 - Prob. 23EACh. 8 - Prob. 24EACh. 8 - Prob. 25EACh. 8 - Prob. 26EACh. 8 - Prob. 27EACh. 8 - Prob. 28EACh. 8 - Prob. 29EACh. 8 - Prob. 30EACh. 8 - Prob. 31EACh. 8 - Analyze equity accounts. (LO 1, 2, 3, 5). The...Ch. 8 - Prob. 33EACh. 8 - Prob. 34EACh. 8 - Prob. 35EACh. 8 - Prob. 36EACh. 8 - Prob. 37EACh. 8 - Prob. 38EACh. 8 - Prob. 39EBCh. 8 - Prob. 40EBCh. 8 - Prob. 41EBCh. 8 - Prob. 42EBCh. 8 - Prob. 43EBCh. 8 - Prob. 44EBCh. 8 - Prob. 45EBCh. 8 - Prob. 46EBCh. 8 - Prob. 47EBCh. 8 - Prob. 48EBCh. 8 - Prob. 49EBCh. 8 - Prob. 50EBCh. 8 - Prob. 51EBCh. 8 - Prob. 52EBCh. 8 - Prob. 53EBCh. 8 - Prob. 54EBCh. 8 - Prob. 55PACh. 8 - Prob. 56PACh. 8 - Prob. 57PACh. 8 - Prob. 58PACh. 8 - Prob. 59PACh. 8 - Prob. 60PACh. 8 - Prob. 61PACh. 8 - Prob. 62PACh. 8 - Prob. 63PBCh. 8 - Prob. 64PBCh. 8 - Prob. 65PBCh. 8 - Prob. 66PBCh. 8 - Prob. 67PBCh. 8 - Prob. 68PBCh. 8 - Prob. 69PBCh. 8 - Prob. 70PBCh. 8 - Prob. 1FSACh. 8 - Prob. 2FSACh. 8 - Prob. 3FSACh. 8 - Prob. 1CTPCh. 8 - Prob. 2CTPCh. 8 - Prob. 1IECh. 8 - Prob. 2IECh. 8 - Prob. 3IECh. 8 - Prob. 4IECh. 8 - Prob. 5IE
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
- 10. At December 31, 2015, the records of Kosme Corporation provided the following: (see attached image for the given. please asnwer it. thank you so much!!) Direction:a. Give the number of shares authorized ___ issued ___b. Give the number of shares outstanding ___c. Give the amount of Additional-Paid-In capital. ___d. Give the earnings per share. ___ Round your answer to two decimal places.e. Amount of dividends paid during 2015. ___f Amount of treasury shares reported in the stockholders' equity ___g. Amount of free retained earnings on December 31. ___arrow_forwardPrepare a statement of stockholders' equity for Al-Can Products, Inc. Navigate to the Stockholders' Equity Statement tab in the spreadsheet. Use the following information to prepare your statement: a. January 1 balance of capital stock account of 9,000 shares issued at $6.00 per share was $54,000.00. b. No other stock was issued during the year. c. January 1 balance of retained earnings account was $29,250.00. d. Net Income was $41,106.00. e. Dividends declared during the year were $19,200.00.arrow_forwardMany types of transactions may affect stockholders' equity. Identify the effects of the following transactions on total stockholders' equity. Each transaction is independent. LOADING... (Click the icon to view the transactions.) (Complete all input boxes. For transactions with no effect, make sure to enter "0" in the amount column.) Effect on Total Stockholders' Equity Amount a. A 10% stock dividend. Before the dividend, 580,000 shares of $1 par value common stock were outstanding; market value was $4 per share at the time of the dividend. b. A 2-for-1 stock split. Prior to the split, 61,000 shares of $3 par value common stock were outstanding. c. Purchase of 1,300 shares of $0.50 par treasury stock at $6 per share. d. Sale of 600 shares of $0.50 par treasury stock for $7 per share. Cost of the treasury stock was $6 per share. a. A 10% stock dividend. Before the…arrow_forward
- The following accounts appear in the ledger of Sapphire Corporation on December 31, 2011: $30,000 60,000 7,000 18,000 40,000 5,000 2,000 Preferred Stock Common Stock Paid-in Capital in Excess of Par Value, Preferred Paid-in Capital in Excess of Par Value, Common Retained Earnings Treasury Stock Dividend Required: What is the Impact of Treasury Stock in the Stockholder's Equity and why do companies have Treasury Stock? What is dividend and how does it impact the company's stockholder's equity section? How much is the total additional paid-in capital in 2011?arrow_forwardThe stockyholder's section of the balance sheet contains such as the following . Common stock . Preferred stock .Additional paid in capital . Other accumulated comprehensive income .retained earnings It is important to understand how changes in the accounts impact the balance sheet and the financial positions. Ginseng inc. Has $200, 000 of 5%, $10 par value preferred and $450,000 of $5 par value common stock issued outstanding on Dec.31, 2021. There were no stock issuance, stock splits or dividends for 2021. The organization's calender year end is Dec. 31, 2021. The preferred stock did not receive any dividends for 2019 or 2020 because the company did not have adequate cash reserves to pay out dividends. The preferred stock has a mix characteristics. . 10% of the preferred stock is noncumulative, nonparticipating . 20% of the preferred stock is cumulatuve , nonparticipating .20% of the preferred stock is nonculative, participating .50% of the preferred stock is cumulatuve,…arrow_forwardBeacon Corporation issued a 5 percent stock dividend on 39,500 shares of its $7 par common stock. At the time of the dividend, the market value of the stock was $27 per share. Required: a. Compute the amount of the stock dividend. b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amount of the stock dividend. Stock dividendarrow_forward
- From the practice on page 10-4 of the VLN, after the company sold 500 shares of treasury stock what was the ending balance in total stockholders’ equity?_______arrow_forwardThe following account balances relate to the stockholders' equity accounts of Molder Corp. at year-end. Common stock, 10,500 and 10,000 shares, issued and outstanding, respectively, for 2022 and 2021 Preferred stock, 5,000 shares, issued and outstanding Retained earnings (a) (b) What was the amount of net income reported by Molder Corp. in 2022? Net income $ (c) A small stock dividend was declared and issued in 2022. The market price of the shares issued was $8,800. Cash dividends of $20,000 were declared and paid in both 2022 and 2021. The common stock and preferred stock have no par or stated value. Common stock $ Dividends eTextbook and Media Save for Later 2022 $160,800 125,000 Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2022. $ Common stock 300,000 Dividends 2021 $140,000 125,000 270,000 Indicate where each of the cash inflows or outflows identified in (b) would be classified on the statement of cash flows.arrow_forwardBeacon Corporation issued a 4 percent stock dividend on 37,500 shares of its $8 par common stock. At the time of the dividend, the market value of the stock was $21 per share. Required a. Compute the amount of the stock dividend. b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amount of the stock dividend. Slock dividend C Raquired A Required B >arrow_forward
- Prepare the stockholders’ equity section of the balance sheet at December 31, 2017. Calculate the payout ratio, earnings per share, and return on common stockholders’ equity. (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%.)arrow_forwardHoldup Bank has an issue of preferred stock with a $1.93 stated dividend that just sold for $27.73 per share. What is the bank's cost of preferred stock? Enter the answer with 4 decimals (e.g. 0.1234).arrow_forwardHickory Inc. experienced the following stockholders' equity transactions (listed in chronological order) during it's first year of operations. Based on these transactions, calculate the balances that would appear in the stockholders' equity accounts listed below. Formatting: Please round to the nearest dollar and do not use dollar signs (i.e. enter '1,000' rather than '$1,000'). All numbers should be positive. Common Stock, 100,000 shares of $1 par value common stock authorized Preferred Stock, 50,000 shares of $10 par value preferred stock authorized 1 Issued 5,000 common shares at $30 per share 2 Exchanged 4,000 preferred shares for a piece of equipment with a fair value of $49,000. 3 Issued 2,500 common shares at $25 per share 4 Purchased 500 of own common shares on the open market at $24 per share 5 Declared a 30% common stock dividend. Common stock was trading at $23 per share on the date of declaration.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Stockholders Equity: How to Calculate?; Author: Accounting University;https://www.youtube.com/watch?v=2jZk1T5GIlw;License: Standard Youtube License