1. 11-4 Reporting the Stockholders' Equity Section of the BalanceSheet [LO2, LO3, LO4]
Shelby Corporation was organized in January 2010 by 10 stockholdersto operate an air conditioning sales and service business. Thecharter issued by the state authorized the following capitalstock:
Common stock, $1 par value, 200,000 shares. Preferred stock, $8 par value, 6 percent, 50,000 shares.
During January and February 2010, the following stock transactionswere completed:
a. Collected $40,000 cash from each of the 10 organizers and issued2,000 shares of common stock to each of them. b. Issued 15,000 shares of preferred stock at $25 per share; collectedin cash.
Net income for 2010 was $40,000; cash dividends declared and paidat year-end were $10,000.
Required: Prepare the stockholders' equity section of the balance sheet atDecember 31, 2010. (Omit the "$" sign in your response.)
Stockholders' Equity%u2014December 31, 2010 Contributed capital: Preferred stock $ Additional paid-incapital, preferred stock Common stock Additional paid-incapital, common stock
Totalcontributed capital Retained earnings
Total stockholders'equity $
E11-1Computing Shares Outstanding [LO1]2. The 2008 annual report for Fortune Brands, the seller of Pinnaclegolf balls and MasterLock padlocks,disclosed that 750 millionshares of common stock have been authorized. At the end of 2007,235 million shares had been issued and the number of shares intreasury stock was 81 million. During 2008, 1 million common shareswere reissued from treasury, and 5 million common shares werepurchased for treasury stock.
Required:
(a) Determine the number of common shares issued at the end of 2008.(Enter your answer in millions.)
Issued stock
(b) Determine the number of common shares in treasury at the end of2008. (Enter your answer in millions.)
Treasury stock
(c) Determine the number of common shares outstanding at the end of2008. (Enter your answer in millions.)
Shares outstanding
1. 11-4 Reporting the Stockholders' Equity Section of the BalanceSheet [LO2, LO3, LO4]
Shelby Corporation was organized in January 2010 by 10 stockholdersto operate an air conditioning sales and service business. Thecharter issued by the state authorized the following capitalstock: |
| Common stock, $1 par value, 200,000 shares. |
| Preferred stock, $8 par value, 6 percent, 50,000 shares. |
| During January and February 2010, the following stock transactionswere completed: |
| a. | Collected $40,000 cash from each of the 10 organizers and issued2,000 shares of common stock to each of them. |
| b. | Issued 15,000 shares of preferred stock at $25 per share; collectedin cash. |
| Net income for 2010 was $40,000; cash dividends declared and paidat year-end were $10,000. |
| Required: |
| Prepare the stockholders' equity section of the balance sheet atDecember 31, 2010. (Omit the "$" sign in your response.) |
| Stockholders' Equity%u2014December 31, 2010 | |
| Contributed capital: | |
| Preferred stock | $ |
| Additional paid-incapital, preferred stock | |
| Common stock | |
| Additional paid-incapital, common stock | |
| Totalcontributed capital | |
| Retained earnings | |
| Total stockholders'equity | $ |
| | |
| | |
The 2008 annual report for Fortune Brands, the seller of Pinnaclegolf balls and MasterLock padlocks,disclosed that 750 millionshares of common stock have been authorized. At the end of 2007,235 million shares had been issued and the number of shares intreasury stock was 81 million. During 2008, 1 million common shareswere reissued from treasury, and 5 million common shares werepurchased for treasury stock. |
| Required: |
| (a) | Determine the number of common shares issued at the end of 2008.(Enter your answer in millions.) |
| Issued stock |
| (b) | Determine the number of common shares in treasury at the end of2008. (Enter your answer in millions.) |
| Treasury stock |
| (c) | Determine the number of common shares outstanding at the end of2008. (Enter your answer in millions.) |
| Shares outstanding |
Related questions
Shelby Corporation was organized in January 2013 to operate anair conditioning sales and service business. The charter issued bythe state authorized the following capital stock: |
| Common stock, $1 parvalue, 200,000 shares. |
| Preferred stock, $10par value, 6 percent, 50,000 shares. |
| During January andFebruary 2013, the following stock transactions werecompleted: |
| a. | Collected $841,000 cash andissued 29,000 shares of common stock. |
| b. | Issued 19,500 shares ofpreferred stock at $39 per share; collected in cash. |
| Net income for 2013 was $59,000;cash dividends declared and paid at year-end were $10,000. |
| Required: |
| Prepare the stockholdersâ equity section of the balance sheet atDecember 31, 2013. This is what i have Contributed capital Preferred stock issued [19500*10] 195000 Additional preferred stock paid in capital [19500*29] 565500 Common stock issued [29000*1] 29000 Additional common stock paid in capital 812000 Total Contributed Capital 1601500 What are the retained earnings/net income and the total stockholders equity? Its not add: Net Income 59000 Less: dividends (10000) I tried that and it didnt work. where am I going wronghere? |
| Helifex , Inc. began operations in 2010 and has the following Capital Stock: | |||||
| Helifex , Inc. Capital Stock: | |||||
| Preferred Stock: | # Shares | Stated Dividend Rate | Par value | ||
| Authorized shares of cumulative, non-participatory preferred stock | 80,000 | 6% | $10 | ||
| Issued shares of prefered stock | 60,000 | ||||
| Outstanding shares of preferred stock | 30,000 | ||||
| Common Stock: | # Shares | ||||
| Authorized shares of $1 par value common stock | 50,000 | ||||
| Issued shares of common stock | 40,000 | ||||
| Outstanding shares of common stock | 10,000 | ||||
| Required: | |||||
| a) | Compute the amount of Preferred Stock dividends. | ||||
| b) | On January 1, 2017, the Board of Directors declared dividends of | $ 35,000 | |||
| Prepare the journal entry for the declaration of the dividends. | |||||
| c) | On March 31, 2017, the dividends are disbursed to stockholders of record. Determine the allocation of dividends to Preferred and Common Stockholders. | ||||
| d) | The Board of directors did not declare dividends during 2018. Determine the allocation of dividends to Preferred and Common Stockholders. | ||||
| Total dividends for Preferred Stockholders | |||||
| Total dividends for Common Stockholders | |||||
| e) | On June 8, 2019 the Board of Directors declared dividends of | $110,000 | |||
| Determine the allocation of dividends to Preferred and Common Stockholders. | |||||
| f) | The following year, on November 30, 2020, the board declared dividends of | $100,000 | |||
| Determine the allocation of dividends to Preferred and Common stockholders. | |||||
| g) | Explain the advantages and disadvantages of investing in preferred stock. | ||||
