Kidwell, Inc., is authorized to issue 5,000,000 shares of no- par common stock and 800,000 shares of $ 30 par value preferred stock. During its first year of operation, the company issued 1,200,000 shares of common stock for a total amount of $ 20,400,000 and 250,000 shares of preferred stock for a total of $ 8,750,000. The firm has net income of $ 535,000 for the year, but it declared no dividends. Prepare the shareholders’ equity section of the balance sheet as it would appear after the first year’s operation.
Answer to relevant QuestionsStephenson Products issued 9,000 shares of its $ 1 par value common stock in exchange for some machinery. Prepare the journal entry for each of the following situations: A. The machinery has a fair market value of $ ...Sprague, Inc., has 10,000,000 shares of $ 2 par value common stock authorized and 1,500,000 shares issued and outstanding. The stock had a fair market value of $ 20 per share on November 15, 2010, when the board of directors ...Using the information in E15.15, show how Phillips Corporation’s income statement and balance sheet report the impact of this note for the years ended December 31, 2010, and December 31, 2011. McDougall Corporation is authorized to issue 500,000 shares of $ 40 par value, 10 percent cumulative preferred stock and 2,000,000 shares of $ 0.01 par value common stock. The following transactions summarize the events ...The promotions manager of Waterbed World is interested in running a “36 months, no interest sale.” He wants to offer customers the opportunity to buy waterbeds and to finance the purchase by merely dividing the price of ...
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