Greenfield Incorporated had an initial public offering (IPO) in 2020. The results of the IPO, as well
Question:
Greenfield Incorporated had an initial public offering (IPO) in 2020. The results of the IPO, as well as the balance in retained earnings for the organization, is as follows as of December 31, 2020:
Greenfield Incorporated Equity Accounts:
Common stock: $ 500,000
APIC - Common Stock: $1,750,000
Retained Earnings: $2,400,000
In 2021, the following events occurred:
- The corporation needed legal advice and issued an additional 2,500 shares of $2 par common stock as payment for legal services. The value of the legal services is $80,000.
- The corporation needed cash to help expand the distribution channel and issued 4,500 shares out of 10,000 shares authorized as 6% cumulative preferred stock, $100 par value, for $106 per share.
- The board of directors wanted to make sure the stockholders knew they were valued and declared a dividend of $1.25 per share on the outstanding common stock.
- Greenfield Incorporated had a successful year during 2021 and reported net income of $675,000.
Complete the stockholders' equity section of a balance sheet as of December 31, 2021 including the impact of the events that happened during the year.
Greenfield Incorporated Equity Section of the Balance Sheet | |
Preferred stock | $ |
Total equity | $ |
The company generally issues stock to raise additional capital, but an IPO does not come without risk. What legal disclosures are required when a company has an IPO? In addition, what ethical issues could the organization face with repurchasing its stock to prevent a takeover?
Copy and paste the table above from Part 1 into a word document to complete the stockholder's equity section of the Greenfield Balance Sheet. The remaining 4 pages should address the legal disclosures, ethical issues, and considerations of repurchasing stock. Be sure to incorporate any risk considerations. Please use APA formatting requirements to complete the assignment.
Submitting your assignment in APA format means, at a minimum, you will need the following:
- Title page: Remember the running head. The title should be in all capitals.
- Length: 5 pages minimum
- Body: This begins on the page following the title page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 5 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
- Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.
Auditing Cases An Interactive Learning Approach
ISBN: 978-0132423502
4th Edition
Authors: Steven M Glover, Douglas F Prawitt