On January 1, 2012, Vaness Corporation was granted a charter authorizing the following capital stock: common stock
Question:
On January 1, 2012, Vaness Corporation was granted a charter authorizing the following capital stock: common stock, $5 par, 200,000 shares; preferred stock, $10 par, 7%, 50,000 shares. Record the following 2012 transactions:
a. Issued 95,000 shares of common stock at $22 per share.
b. Issued 18,000 shares of preferred stock at $13 per share.
c. Bought back 10,000 shares of common stock at $30 per share.
d. Reissued 1,000 shares of treasury stock at $27 per share.
e. Declared cash dividends of $27,400 to be allocated between common and preferred stockholders. (The preferred stock, which has a current-dividend preference, is noncumulative.)
f. Paid dividends of $27,400.
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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain