Moscow Jewelry Company reported the following summarized balance sheet at December 31, 2010: Assets Current assets.....................................................................$33,600 Property
Question:
Moscow Jewelry Company reported the following summarized balance sheet at December 31, 2010:
Assets
Current assets.....................................................................$33,600
Property and equipment, net.............................................. 74,000
Total assets......................................................................... $107,600
Liabilities and Equity
Liabilities ................................................................................. $ 37,300
Stockholders equity:
$0.70 cumulative preferred stock, $5 par, 300 shares issued.... 1,500
Common stock, $4 par, 6,500 shares issued.............................. 26,000
Paid-in capital in excess of par.................................................. 17,800
Retained earnings...................................................................... 25,000
Total liabilities and equity.........................................................$107,600
During 2011, Moscow completed these transactions that affected stockholders equity:
Feb 13 Issued 5,400 shares of common stock for $5 per share.
Jun 7 Declared the regular cash dividend on the preferred stock.
24 Paid the cash dividend.
Aug 9 Distributed a 10% stock dividend on the common stock. Market price of the common stock was $6 per share.
Oct 26 Reacquired 500 shares of common stock as treasury stock, paying $7 per share.
Nov 20 Sold 200 shares of the treasury stock for $11 per share.
Requirements
1. Journalize Moscow’s transactions. Explanations are not required.
2. Report Moscow’s stockholders equity at December 31, 2011. Net income for 2011 was $28,000.
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... Balance Sheet
Balance 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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas