2. The TMI Corporation has been in operation for over 30 years and, at December 31,...

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2. The TMI Corporation has been in operation for over 30 years and, at December 31, 2017, it had: • 10,000 shares of $300 par-value common stock authorized, of which 4,000 shares had been issued, and . 10,000 shares authorized, issued, and outstanding of $20 stated-value preferred stock, that pays a dividend of 4%. On January 2, 2018, TMI's Board of Directors declared and issued a 3-for-1 common stock split. Then, on September 1, 2018, TMI's Board declared (i) a 20% (small) common stock dividend to holders of record on October 1, to be distributed on November 1, and (ii) the preferred stock dividend. The company's accounts also showed the following balances on August 31, 2018, before the declaration of the dividends: Additional contributed capital.... Retained earnings (includes all net income earned through August 31) $ 90,000 ******* 600,000 When distributed in November, the stock dividend included 6,000 fractional share rights, representing 600 potential shares. On December 15, 90% of the rights were exercised; the remaining rights will not be exercised until 2019. On December 20, 2018, TMI acquired 2,000 shares of its own common stock at the current market value. On December 30, 2018, TMI established a $206,000 sinking fund, with an equivalent reserve in stockholders' equity. The company had additional net income of $114,000 for the period September 1 through December 31, 2018. After the stock split, the market value of TMI's common stock throughout 2018 was $96 per share. Using the information above, prepare a statement of stockholders' equity of The TMI Corporation at December 31, 2018, providing full disclosure. 2. The TMI Corporation has been in operation for over 30 years and, at December 31, 2017, it had: • 10,000 shares of $300 par-value common stock authorized, of which 4,000 shares had been issued, and . 10,000 shares authorized, issued, and outstanding of $20 stated-value preferred stock, that pays a dividend of 4%. On January 2, 2018, TMI's Board of Directors declared and issued a 3-for-1 common stock split. Then, on September 1, 2018, TMI's Board declared (i) a 20% (small) common stock dividend to holders of record on October 1, to be distributed on November 1, and (ii) the preferred stock dividend. The company's accounts also showed the following balances on August 31, 2018, before the declaration of the dividends: Additional contributed capital.... Retained earnings (includes all net income earned through August 31) $ 90,000 ******* 600,000 When distributed in November, the stock dividend included 6,000 fractional share rights, representing 600 potential shares. On December 15, 90% of the rights were exercised; the remaining rights will not be exercised until 2019. On December 20, 2018, TMI acquired 2,000 shares of its own common stock at the current market value. On December 30, 2018, TMI established a $206,000 sinking fund, with an equivalent reserve in stockholders' equity. The company had additional net income of $114,000 for the period September 1 through December 31, 2018. After the stock split, the market value of TMI's common stock throughout 2018 was $96 per share. Using the information above, prepare a statement of stockholders' equity of The TMI Corporation at December 31, 2018, providing full disclosure.

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Statement of Stockholders Equity of TMI Corporation date Dec 31 2018 Com... View the full answer