The information presented in this case is also used for Case 8.35. For now you can ignore
Question:
The information presented in this case is also used for Case 8.35. For now you can ignore the 2020 column in the balance sheet; all disclosures presented here relate to the June 30, 2019, balance sheet.) DeZurik Corp. had the following stockholders? equity section in its June 30, 2019, balance sheet (in thousands, except share and per share amounts):
Required:
a. Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage.
b. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2019.
c. What was the average issue price of common stock shown on the June 30, 2019, balance sheet?
d. How many shares of treasury stock does DeZurik Corp. own at June 30, 2019?
e. Assume that the treasury shares were purchased for $21 per share. Calculate the amount that should be shown on the balance sheet for treasury stock at June 30, 2019.
f. Calculate the retained earnings balance at June 30, 2019, after you have completed parts a?e. (Hint: Keep in mind that Treasury Stock is a contra account.)
g. Assume that the Retained Earnings balance on July 1, 2018, was $13,400 (in thousands) and that net income for the year ended June 30, 2019, was $908 (in thousands). The 2019 preferred dividends were paid in full, and no other dividend transactions were recorded during the year. Verify that the amount shown in the solution to part f is correct.
Balance SheetBalance 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...
Step by Step Answer:
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele