During 2014, Young Company had the following transactions: a. Cash dividends of $10,000 were paid. b. Equipment
Question:
During 2014, Young Company had the following transactions:
a. Cash dividends of $10,000 were paid.
b. Equipment was sold for $4,800. It had an original cost of $18,000 and a book value of $9,000. The loss is included in operating expenses.
c. Land with a fair market value of $25,000 was acquired by issuing common stock with a par value of $6,000.
d. One thousand shares of preferred stock (no par) were sold for $7 per share. Young provided the following income statement (for 2012) and comparative balance sheets:
Sales ................................. $246,000
Less: Cost of goods sold ......... (150,000)
Gross margin ........................ $96,000
Less: Operating expenses ......... (66,000)
Net income ........................... $30,000
Required:
Prepare a worksheet for Young Company.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Step by Step Answer:
Cornerstones of managerial accounting
ISBN: 978-1133943983
5th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger