Prepare the stockholders' equity section of the balance sheet at December 31, 2017. BRIDGEPORT CORP. The stockholders
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Prepare the stockholders' equity section of the balance sheet at December 31, 2017. BRIDGEPORT CORP.
The stockholders’ equity accounts of Bridgeport Corp. on January 1, 2017, were as follows.
Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) | $300,000 | |
Common Stock ($4 stated value, 300,000 shares authorized) | 1,000,000 | |
Paid-in Capital in Excess of Par Value—Preferred Stock | 15,000 | |
Paid-in Capital in Excess of Stated Value—Common Stock | 480,000 | |
Retained Earnings | 699,500 | |
Treasury Stock (5,000 common shares) | 40,000 |
During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity.
Feb. | 1 | Issued 5,000 shares of common stock for $35,000. | |
Mar. | 20 | Purchased 1,000 additional shares of common treasury stock at $8 per share. | |
Oct. | 1 | Declared a 7% cash dividend on preferred stock, payable November 1. | |
Nov. | 1 | Paid the dividend declared on October 1. | |
Dec. | 1 | Declared a $0.75 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. | |
Dec. | 31 | Determined that net income for the year was $280,500. Paid the dividend declared on December 1. |
Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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