🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Accounting
2
answers
0
watching
170
views

Recording and reporting stock transactions andcash dividends across two accounting cycles in excelspreadsheet.

Davis Corporation was authorized to issue100,000 shares of $10 par common stock and 50,000 shares of $50par, 6 percent, cumulative preferred stock. Davis Corporationcompleted the following transactions during its first two years ofoperation.

2012

Jan.

2 Issued 5,000 shares of $10 par commonstock for $28 per share.

15Issued 1,000 shares of $50 par preferred stock for $70 pershare.

Feb. 14 Issued 15,000 shares of $10 par commonstock for $30 per share.

Dec.

31 During the year, earned $170,000 of cashservice revenue and paid $110,000 of cash operating expenses.

31Declared the cash dividend on outstanding shares of preferred stockfor 2012. The dividend will be paid on January 31 to stockholdersof record on January 15, 2013.

2013

Jan. 31 Paid the cash dividend declared onDecember 31, 2012.

Mar. 1 Issued 2,000 shares of $50 parpreferred stock for $58 per share.

June 1 Purchased 500 shares of common stock astreasury stock at $43 per share.

Dec. 31 During the year, earned $210,000 ofcash service revenue and paid $175,000 of cash operatingexpenses.

31 Declared the dividend on the preferredstock and a $0.60 per share dividend on the common stock.
.

a. Organize the transaction data in accountsunder an accounting equation.

b. Prepare the stockholders%u2019 equitysection of the balance sheet at December 31, 2012.

c. Prepare the balance sheet at December 31,2013.

Watch
2
answers
0
watching
170
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Patrina Schowalter
Patrina SchowalterLv2
28 Sep 2019
Already have an account? Log in
Share

Related questions

Daviscorporation was authorized to issue 100,000 share of $10 parcommon stock and 50,000 shares of $50 par, 6 percent, cumulativepreferred stock. Davis Corporation completed the followingtransactions during the first two years of operation.
2012
Jan 2 Issued 5,000 shares of $10 par common stock for $28 pershare
Jan 15 Issued 1,000 shares of $50 par preferred stock for $70 pershare.
Feb 14 Issued 15,000 shares of $10 par common stock for $30 pershare
Dec 31 During the year, earned $170,000 of cash service revenue andpaid $110,000 of cash operating expenses.
Dec 31 Declared the cash dividend on outstanding shares ofpreferred stock for 2012. The dividend will be paid on January 31to stockholders of record on January 15, 2013.
2013
Jan 31 Paid cash dividend declared on December 31 2012
Mar 1 Issued 2,000 shares of $50 par preferred stock for $58 pershare
Jan 1 Purchased 500 shares of common stock as treasury stock at $43per share
Dec 31 During the year, earned $210,000 of cash service revenue andpaid $175,000 of cash operating expenses.
Dec 31 Declared the dividend on the preferred stock and a $.60 pershare dividend on the common stock.
Required:
A) Organize the transation data in accounts under an accountingequation.
B) Prepare the stockholders equity section of the balance sheet atDecember 31, 2012
C) Prepare the balance sheet at December 31, 2013.

Complete each question record transactions


Question 1

Hernandez Company had the following stock transactions duringthe year:

  1. Issued 25,000 shares of $1 par common stock for $25,000.

  2. Issued 20,000 shares of $1 par common stock for $22,000cash.

  3. Issued 22,000 shares of $1 par common stock for $21,000cash.

  4. Issued 2,000 shares of $50 par, 8% preferred stock for $100,000cash.

  5. Issued 1,000 shares of $50 par, 8% preferred stock for $49,000cash.

  6. Issued 1,000 shares of $50 par 8% preferred stock for$51,500

  7. Issued 2,500 shares of no-par common stock for $11,875 cash

  8. Issued 1,500 shares of no par 7% preferred stock for $72,000cash.


Question 2

Kris Kraft Stores had the following stock transactions duringthe year.

  1. Issued 4,000 shares of no par common stock with a stated valueof $10 per share for $40,000 cash.

  2. Issued 6,000 shares of no par common stock with a stated valueof $8 per share for $50,000 cash.

  3. Issued 5,000 shares of no par 6% preferred stock with a statedvalue of $15 per share for $75,000 cash.

  4. Issued 3,000 shares of no par 6% preferred stock with a statedvalue of $20 per share for $58,000 cash.

  5. Issued 10,000 shares of $8 par common stock with a $9 fairmarket value for a building with an uncertain fair marketvalue.

  6. Issued 10,000 shares of $5 common stock for land with a fairmarket value of $50,000.

  7. Issued 8,000 shares of $50 par, 8% preferred stock for land witha fair market value of $405,000.


Question 3

During the year ended December 21, 2013, Smith Company completedthe following transactions:

  1. 04/15 Declared a semiannual dividend of $0.80 per share onpreferred stock and $0.05 per share on common stock to shareholdersof record on 05/05, payable on 05/10. Currently, 4,000shares of $100 par preferred stock and 50,000 shares of $1 parcommon stock are outstanding.

  2. 05/05 Record date of record entry.

  3. 05/10 Paid cash dividends.

  4. 10/15 Declared semiannual dividend of $0.80 per share onpreferred stock and $0.50 per share on common stock to shareholdersof record on November 5, payable on November 20.

  5. 11/5 Record date of record entry.

  6. 11/20 Paid cash dividends

  7. 11/22 Declared a 10% stock dividend to shareholders of record onDecember 8, distributable on December 16. Market valueof the common stock was estimated to be $8.

  8. 12/08 Record date of record entry.

  9. 12/16 issued certificated for common stock dividend.

  10. 12/20 Board of directors declared a two for one common stocksplit.





The stockholders' equity section of Gupta Company at December 31, 2013 follows:

8% preferred stock, $25 par value, 50,000 shares authorized; 7,200 shares issued and outstanding....... $180,000

Common Stock, $10 par value, 200,000 shares authorized; 40,000 shares issued and outstanding..... $400,000

Paid-In capital excess of par value (preferred)......... $68,000

Pain-IN capital in excess par value (common).... $200,000

Retained Earnings... $280,000

During 2014, the following transactions ocurred:

Jan 10 Issued 28,000 shares of common stock for $16 per share

Jan 23 Repurchased 8,000 shares of common stock at $18 per share

Mar 14 Sold half of the treasury shares acquired Jan 23 for $20 per share

July 15 Issued 2,800 shares of preferred stock for $128,000 cash

Nov 15 Sold 1,000 of the treasury shares acquired Jan 23 for $24 per share

Questions:

a0 Use the financial statement effects template to indicate the effects from cash of these transactions.

b) Prepare the December 31, 2014, stockholders' equity section of the balance sheet assuming the company reports 2014 net income of $62,000.

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in