The stockholders' equity of DiFrancesco Company at March 31, 2019 is shown below. 4% preferred stock,...

 

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The stockholders' equity of DiFrancesco Company at March 31, 2019 is shown below. 4% preferred stock, $1,000 par value, 25,000 shares authorized; 10,000 shares issued and outstanding $10,000,000 Common stock, $1 par value, 3,000,000 shares authorized; 700,000 shares issued and outstanding 700,000 Additional paid-in capital-preferred stock 60,000 Additional paid-in capital-common stock Retained earnings Total stockholders' equity The following transactions, among others, occurred during the fiscal year ended March 31, 2020. April 15, 2019 Declare and pay preferred dividends of $400,000 April 15, 2019 Declare and pay common dividends of $1.30 per share October 1, 2019 Execute a 3-for-1 stock split of the common stock when the stock price was $140 per share. March 1, 2020 Declare and pay common dividends of $0.50 per share (a) Use the financial statement effects template to indicate the effects of these separate transactions. Use negative signs with answers, when appropriate. Balance Sheet Transaction Cash Asset + Apr. 15 Apr. 15 Oct. 1 Mar. 1 Noncash Assets 0 0 0 0 Liabilities 0 0 0 0 Contributed Capital 0 0 0 0 17,150,000 49,005,689 $76,915,689 Earned Capital 0 0 0 0 Revenue Income Statement 0 0 0 0 Expenses - 0 Net Income 0 0 0 0 (b) At March 31, 2020, the company reported net income for the year of $8,900,610. Compute retained earnings as of March 31, 2020. The stockholders' equity of DiFrancesco Company at March 31, 2019 is shown below. 4% preferred stock, $1,000 par value, 25,000 shares authorized; 10,000 shares issued and outstanding $10,000,000 Common stock, $1 par value, 3,000,000 shares authorized; 700,000 shares issued and outstanding 700,000 Additional paid-in capital-preferred stock 60,000 Additional paid-in capital-common stock Retained earnings Total stockholders' equity The following transactions, among others, occurred during the fiscal year ended March 31, 2020. April 15, 2019 Declare and pay preferred dividends of $400,000 April 15, 2019 Declare and pay common dividends of $1.30 per share October 1, 2019 Execute a 3-for-1 stock split of the common stock when the stock price was $140 per share. March 1, 2020 Declare and pay common dividends of $0.50 per share (a) Use the financial statement effects template to indicate the effects of these separate transactions. Use negative signs with answers, when appropriate. Balance Sheet Transaction Cash Asset + Apr. 15 Apr. 15 Oct. 1 Mar. 1 Noncash Assets 0 0 0 0 Liabilities 0 0 0 0 Contributed Capital 0 0 0 0 17,150,000 49,005,689 $76,915,689 Earned Capital 0 0 0 0 Revenue Income Statement 0 0 0 0 Expenses - 0 Net Income 0 0 0 0 (b) At March 31, 2020, the company reported net income for the year of $8,900,610. Compute retained earnings as of March 31, 2020. The stockholders' equity of DiFrancesco Company at March 31, 2019 is shown below. 4% preferred stock, $1,000 par value, 25,000 shares authorized; 10,000 shares issued and outstanding $10,000,000 Common stock, $1 par value, 3,000,000 shares authorized; 700,000 shares issued and outstanding 700,000 Additional paid-in capital-preferred stock 60,000 Additional paid-in capital-common stock Retained earnings Total stockholders' equity The following transactions, among others, occurred during the fiscal year ended March 31, 2020. April 15, 2019 Declare and pay preferred dividends of $400,000 April 15, 2019 Declare and pay common dividends of $1.30 per share October 1, 2019 Execute a 3-for-1 stock split of the common stock when the stock price was $140 per share. March 1, 2020 Declare and pay common dividends of $0.50 per share (a) Use the financial statement effects template to indicate the effects of these separate transactions. Use negative signs with answers, when appropriate. Balance Sheet Transaction Cash Asset + Apr. 15 Apr. 15 Oct. 1 Mar. 1 Noncash Assets 0 0 0 0 Liabilities 0 0 0 0 Contributed Capital 0 0 0 0 17,150,000 49,005,689 $76,915,689 Earned Capital 0 0 0 0 Revenue Income Statement 0 0 0 0 Expenses - 0 Net Income 0 0 0 0 (b) At March 31, 2020, the company reported net income for the year of $8,900,610. Compute retained earnings as of March 31, 2020.

Answer rating: 100% (QA)

The image shows a summary of stockholders equity for DiFrancesco Company as of March 31 2019 along with a list of transactions that occurred during th... View the full answer