e. 2. Adolfo Inc., an auto parts manufacturer, has two classes of common shares. Class A...

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e. 2. Adolfo Inc., an auto parts manufacturer, has two classes of common shares. Class A shares are entitled to one vote, whereas Class B shares are entitled to 100 votes. The two classes rank equally for dividends. The following is extracted from a recent annual report: Shareholders' Equity Share capital Class A common shares, no stated value (authorized and issued 1,280 shares).......... $ 1,280 11,000 12,200 Class B common shares, no stated value (authorized and issued 872,403 48,200 shares).. 5884,883 Retained earnings Requirements a. Record the issuance of the Class A common shares. Use the Adolfo Inc. account titles. b. Record the issuance of the Class B common shares. Use the Adolfo Inc. account titles. c. How much of Adolfo Inc.'s shareholders' equity was contributed by the shareholders? How much was provided by profitable operations? Does this division of equity suggest that the company has been successful? Why or why not? d. Write a sentence to describe what Adolfo Inc.'s shareholders' equity balance means. e. 2. Adolfo Inc., an auto parts manufacturer, has two classes of common shares. Class A shares are entitled to one vote, whereas Class B shares are entitled to 100 votes. The two classes rank equally for dividends. The following is extracted from a recent annual report: Shareholders' Equity Share capital Class A common shares, no stated value (authorized and issued 1,280 shares).......... $ 1,280 11,000 12,200 Class B common shares, no stated value (authorized and issued 872,403 48,200 shares).. 5884,883 Retained earnings Requirements a. Record the issuance of the Class A common shares. Use the Adolfo Inc. account titles. b. Record the issuance of the Class B common shares. Use the Adolfo Inc. account titles. c. How much of Adolfo Inc.'s shareholders' equity was contributed by the shareholders? How much was provided by profitable operations? Does this division of equity suggest that the company has been successful? Why or why not? d. Write a sentence to describe what Adolfo Inc.'s shareholders' equity balance means.

Answer rating: 100% (QA)

a Record the issuance of the Class A common shares Use the Adolfo Inc account titles Adolfo Inc Clas... View the full answer