ACCT 209 Study Guide - Final Guide: Treasury Stock, Issued Shares, Preferred Stock

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oliveelk207

30 Oct 2014

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Final exam additional review problems with solutions. 5% preferred stock, (a) par value, 15,000 shares authorized, 9,000 shares issued and outstanding. Common stock, par value, 200,000 shares auth, (b) shares issued and (c) shares outstanding. Additional information: earnings for the corporation over its three-year life have been ,000 per year; no dividends have even been paid. E: par value per share * # shares issued = stock account balance. Par value per share * # shares issued = stock account balance. # shares issued - # shares in treasury = # shares outstanding. *for # shares in treasury, see g below. # treasury shares * cost per share = balance in treasury stock account. Each year, net income is added to re and dividends are deducted. = ,000, dividends = 0, so re balance = 3 * 18,000 = 54,000. E = 4,043,500 (remember treasury stock is a contra-equity account; it reduces total stockholders" equity)

Related Questions

Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year:

Preferred 2% Stock, $80 par (100,000 shares authorized, 60,000 shares issued)	$4,800,000
Paid-In Capital in Excess of ParâPreferred Stock	210,000
Common Stock, $9 par (3,000,000 shares authorized, 1,750,000 shares issued)	15,750,000
Paid-In Capital in Excess of ParâCommon Stock	1,400,000
Retained Earnings	52,840,000

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

a. Purchased 87,500 shares of treasury common for $8 per share.

b. Sold 55,000 shares of treasury common for $11 per share.

c. Issued 20,000 shares of preferred 2% stock at $84.

d. Issued 400,000 shares of common stock at $13, receiving cash.

e. Sold 18,000 shares of treasury common for $7.50 per share.

f. Declared cash dividends of $1.60 per share on preferred stock and $0.05 per share on common stock.

g. Paid the cash dividends.

Required:

Journalize the entries to record the transactions.

For a compound transaction, if an amount box does not require an entry, leave it blank.

aquamarinewombat277

ACT5725

The stockholders' equity of Verrecchia Company at December 31, 2016, follows:

Common stock, $5 par value, 500,000 shares authorized; 350,000 shares issued and outstanding	$1,750,000
Paid-in capital in excess of par value	800,000
Retained earnings	634,000

During 2017, the following transactions occurred:
Jan. 5 Issued 10,000 shares of common stock for $13 cash per share.
Jan. 18 Repurchased 4,000 shares of common stock at $16 cash per share.
Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $19 cash per share.
July 17 Sold 500 shares of treasury stock for $14 cash per share.
Oct. 1 Issued 5,000 shares of 8%, $25 par value preferred stock for $36 cash per share. This is the first issuance of preferred shares from the 50,000 authorized preferred shares.

(a) Use the financial statement effects template to indicate the effects of each transaction.

Use negative signs with answers, when appropriate.

	Balance Sheet
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital
Jan. 5	Answer		Answer		Answer		Answer		Answer
Jan. 18	Answer		Answer		Answer		Answer		Answer
Mar. 12	Answer		Answer		Answer		Answer		Answer
July. 17	Answer		Answer		Answer		Answer		Answer
Oct. 1	Answer		Answer		Answer		Answer		Answer

Income Statement
Revenue	-	Expenses	=	Net Income
Answer		Answer		Answer
Answer		Answer		Answer
Answer		Answer		Answer
Answer		Answer		Answer
Answer		Answer		Answer

(b) Prepare the December 31, 2017, stockholders' equity section of the balance sheet assuming that the company reports net income of $76,900 for the year.

Use a negative sign with your answer for treasury stock.

Stockholders' Equity
Paid-in capital
8% Preferred stock, $25 par value, 50,000 shares authorized, 5,000 shares issued and outstanding	$Answer
Common stock, $5 par value, 500,000 shares authorized; 360,000 shares issued	Answer	$Answer
Additional Paid-in capital
Paid-in capital in excess of par value-preferred stock	Answer
Paid-in capital in excess of par value-common stock	Answer
Paid-in capital from treasury stock	Answer	Answer
Total paid-in capital		Answer
Retained earnings		Answer
		Answer
Less: Treasury stock (2,500 shares) at cost (use a negative sign with answer)		Answer
Total Stockholders' Equity		$Answer

mauvebadger820

act5725