At December 31, 2013, Maloney, Corp. reported the following shareholders equity. Shareholders Equity Share Capital: Common Shares,
Question:
At December 31, 2013, Maloney, Corp. reported the following shareholders’ equity.
Shareholders’ Equity
Share Capital:
Common Shares, unlimited number of shares authorized,
200,000 shares issued and 180,000 outstanding ...$5,600,000
Stock Dividends Distributable....... 270,000
Retained Earnings.............. 690,000
Less: 20,000 Treasury Shares........... (560,000)
Total Shareholders’ Equity............ $6,000,000
During 2014, Maloney, Corp. completed these transactions and events:
Jan 20 Distributed stock dividends (5% of outstanding common shares), which were declared on December 1, 2013.
May 1 Issued 21,000 common shares at $31 per share.
Sep 30 Declared cash dividends of $1 per share.
Oct 31 Paid cash dividends declared on September 30.
Dec 20 Declared a 2-for-1 stock split.
Dec 31 Net income for the year was $240,000.
Requirements
1. What is the market price per share on December 1, 2013?
2. Prepare journal entries to record the above transactions.
3. Prepare Maloney’s shareholders’ equity section of the balance sheet at December 31, 2014.
4. Prepare Maloney’s statement of shareholders’ equity for 2014.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Req 1 Market Price per Share Stock Dividends Distributable Outstanding Shares 5 Market Price 270000 ...View the full answer
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
