The transactions affecting the owners equity accounts of DeZurik Corp. for the year ended June 30, 2011,

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The transactions affecting the owners’ equity accounts of DeZurik Corp. for the year ended June 30, 2011, are summarized here:
1. 320,000 shares of common stock were issued at $14.25 per share.
2. 80,000 shares of treasury (common) stock were sold for $18 per share.
3. Net income for the year was $1,280 (in thousands).
4. The fiscal 2011 preferred dividends were paid in full. Assume that all 96,000 shares were outstanding throughout the year ended June 30, 2011.
5. A cash dividend of $.20 per share was declared and paid to common stockholders. Assume that transactions (1) and (2) occurred before the dividend was declared.
6. The preferred stock was split 2 for 1 on June 30, 2011.

Required:
a. Calculate the dollar amounts that DeZurik Corp. would report for each owners’ equity caption on its June 30, 2011, balance sheet after recording the effects of transactions 1–6. Note that total owners’ equity at June 30, 2011, is provided as a check figure.
b. Indicate how the owners’ equity caption details for DeZurik Corp. would change for the June 30, 2011, balance sheet, as compared to the disclosures shown in Case 8.29 for the 2010 balance sheet.
c.
What was the average issue price of common stock shown on the June 30, 2011, balance sheet?

Common Stock
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...
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Accounting What the Numbers Mean

ISBN: 978-0073527062

9th Edition

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

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