2. Kilgore Auto Parts reported the following information at December 31, 2004:
Preferred stock, 10%, $10 par value, cumulative $60,000
Common stock, $2 par value 10,000
Additional paid-in capital â Common stock 30,000
Retained earnings 50,000
Total contributed capital and retained earnings 150,000
Less: Treasury stock (100 shares common stock at cost) (5,000)
Total stockholdersâ equity $145,000
A) How many shares of common stock are issued?
B) How many shares of preferred stock are issued?
C) How many shares of common stock are outstanding?
D) What was the average price paid for the treasury shares when the company reaquired them?
E) What is the dividend PER SHARE that preferred shareholders are entitled to when a dividend is declared?
F) What was the average price of common shares when they were issued?
G) If a 15% stock dividend were issued, by how much would the total stockholdersâ equity balance change?
2. Kilgore Auto Parts reported the following information at December 31, 2004:
Preferred stock, 10%, $10 par value, cumulative $60,000
Common stock, $2 par value 10,000
Additional paid-in capital â Common stock 30,000
Retained earnings 50,000
Total contributed capital and retained earnings 150,000
Less: Treasury stock (100 shares common stock at cost) (5,000)
Total stockholdersâ equity $145,000
A) How many shares of common stock are issued?
B) How many shares of preferred stock are issued?
C) How many shares of common stock are outstanding?
D) What was the average price paid for the treasury shares when the company reaquired them?
E) What is the dividend PER SHARE that preferred shareholders are entitled to when a dividend is declared?
F) What was the average price of common shares when they were issued?
G) If a 15% stock dividend were issued, by how much would the total stockholdersâ equity balance change?
Related questions
Problem 1
Sweet Sixteen has two classes of stock authorized: $100 par preferred and $1 par value common. As of the beginning of 2012, 1,000 shares of preferred stock have been issued and 20,000 shares of common stock have been issued. The following transactions affect stockholdersâ equity during 2012:
March 1 Issue 3,000 additional shares of common stock for $22 per share.
April 1 Issue 5,000 additional shares of preferred stock for $110 per share.
June 1 Declare a cash dividend on common stock of $1 per share and a cash dividend on preferred stock of $5 per share to all stockholders of record on June 15.
June 30 Pay the cash dividends declared on June 1.
August 1 Repurchase 2,000 shares of common treasury stock for $18 per share.
October 1 Reissue 1,000 shares of treasury stock purchased on August 1 for $20 per share.
Sweet Sixteen has the following beginning balances in its stockholdersâ equity accounts on January 1, 2012: preferred stock, $100,000, common stock, $20,000; paid-in capital, $380,000; and retained earnings, $450,000. Net income for the year ended December 31, 2012, is $65,000.
Required:
1. Record each of these transactions.
2. Indicate whether each of these transactions would increase (+), decrease (â), or have no effect (NE) on total assets, total liabilities, and total stockholdersâ equity by completing the following chart.
| Transaction | Total Assets | Total Liabilities | Total Stockholdersâ Equity |
| Issue common stock | |||
| Issue preferred stock | |||
| Declare cash dividends | |||
| Pay cash dividends | |||
| Repurchase treasury stock | |||
| Reissue treasury stock |
3. Prepare the stockholdersâ equity section of the balance sheet as of December 31, 2012.
4. Prepare the statement of stockholdersâ equity for the year ended December 31, 2012.
5. Explain how items 3 and 4 are similar and how they are different.
