Item 2: The December 31, 2024 balance sheet of Entity M showed the following: Treasury stock...

Transcribed Image Text:

Item 2: The December 31, 2024 balance sheet of Entity M showed the following: Treasury stock (3 ,000 shares common) $ 43,000 Paid-in capital in excess of stated value - common stock. 9% preferred stock, $100 par value, cumulative, 30,000 shares authorized; 11,000 shares issued, ? outstanding...... Common stock, $10 stated value, 600,000 shares authorized; 200,000 shares issued,. ? shares outstanding. Paid-in capital in excess of par value - preferred stock. Retained earnings 1,700,000 ..$ 1,100,000 2,000,000 410,000 1,960,000 Instructions: What is total stockholders' equity? Prepare the stockholders' equity section of the balance sheet. You should look at Illus. 11.18 to get a sense of what yours should look like. Use good form, indicating the number of authorized, issued, and outstanding shares for each class of stock. Item 1: On January 1, 2024, Entity L had 25,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 June 1 June 30 Dec. 1 Issued 36,000 shares of common stock at $12 per share. Declared a cash dividend of $1.70 per share to stockholders of record on June 15 Paid the $1.70 cash dividend Purchased 1,500 shares of common stock for the treasury for $20 per share Instructions: Prepare journal entries to record the above transactions. Show your calculations. I Item 2: The December 31, 2024 balance sheet of Entity M showed the following: Treasury stock (3 ,000 shares common) $ 43,000 Paid-in capital in excess of stated value-common stock. 9% preferred stock, $100 par value, cumulative, 30,000 shares authorized; 11,000 shares issued, ? outstanding. Common stock, $10 stated value, 600,000 shares authorized; 200,000 shares issued, ? shares outstanding.. Paid-in capital in excess of par value-preferred stock. Retained earnings ..... 1,700,000 $1,100,000 2,000,000 410,000 1,960,000 Instructions: What is total stockholders' equity? Prepare the stockholders' equity section of the balance sheet. You should look at illus. 11.18 to get a sense of what yours should look like. Use good form, indicating the number of authorized, issued, and outstanding shares for each class of stock. Item 1: On January 1, 2024, Entity L had 25,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 Issued 36,000 shares of common stock at $12 per share. June 1 June 30 Declared a cash dividend of $1.70 per share to stockholders of record on June 15 Paid the $1.70 cash dividend Dec. 1 Purchased 1,500 shares of common stock for the treasury for $20 per share Instructions: Prepare journal entries to record the above transactions. Show your calculations. 1. Issuance of Common Stock (March 1): Entity L issues 36,000 shares of common stock at $12 per share. The per value of the stock is $1, so the additional amount over parr value will be credited to Additional Paid In Capital. Debit Cash [(36,000 shares x 12/ share)]= $432,000 Credit Common Stock [(36,000 shares x $1 par value)]= $36,000 Credit Additional Paid-In Capital [(36,000 shares x ($12-$1))]= $396,000 This entity reflects the cash received and the increase in common stock and additional paid in capital due to the issuance of new shares. 2. Declaration of Cash Dividend (June 1): A cash dividend Item 2: The December 31, 2024 balance sheet of Entity M showed the following: Treasury stock (3 ,000 shares common) $ 43,000 Paid-in capital in excess of stated value - common stock. 9% preferred stock, $100 par value, cumulative, 30,000 shares authorized; 11,000 shares issued, ? outstanding...... Common stock, $10 stated value, 600,000 shares authorized; 200,000 shares issued,. ? shares outstanding. Paid-in capital in excess of par value - preferred stock. Retained earnings 1,700,000 ..$ 1,100,000 2,000,000 410,000 1,960,000 Instructions: What is total stockholders' equity? Prepare the stockholders' equity section of the balance sheet. You should look at Illus. 11.18 to get a sense of what yours should look like. Use good form, indicating the number of authorized, issued, and outstanding shares for each class of stock. Item 1: On January 1, 2024, Entity L had 25,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 June 1 June 30 Dec. 1 Issued 36,000 shares of common stock at $12 per share. Declared a cash dividend of $1.70 per share to stockholders of record on June 15 Paid the $1.70 cash dividend Purchased 1,500 shares of common stock for the treasury for $20 per share Instructions: Prepare journal entries to record the above transactions. Show your calculations. I Item 2: The December 31, 2024 balance sheet of Entity M showed the following: Treasury stock (3 ,000 shares common) $ 43,000 Paid-in capital in excess of stated value-common stock. 9% preferred stock, $100 par value, cumulative, 30,000 shares authorized; 11,000 shares issued, ? outstanding. Common stock, $10 stated value, 600,000 shares authorized; 200,000 shares issued, ? shares outstanding.. Paid-in capital in excess of par value-preferred stock. Retained earnings ..... 1,700,000 $1,100,000 2,000,000 410,000 1,960,000 Instructions: What is total stockholders' equity? Prepare the stockholders' equity section of the balance sheet. You should look at illus. 11.18 to get a sense of what yours should look like. Use good form, indicating the number of authorized, issued, and outstanding shares for each class of stock. Item 1: On January 1, 2024, Entity L had 25,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 Issued 36,000 shares of common stock at $12 per share. June 1 June 30 Declared a cash dividend of $1.70 per share to stockholders of record on June 15 Paid the $1.70 cash dividend Dec. 1 Purchased 1,500 shares of common stock for the treasury for $20 per share Instructions: Prepare journal entries to record the above transactions. Show your calculations. 1. Issuance of Common Stock (March 1): Entity L issues 36,000 shares of common stock at $12 per share. The per value of the stock is $1, so the additional amount over parr value will be credited to Additional Paid In Capital. Debit Cash [(36,000 shares x 12/ share)]= $432,000 Credit Common Stock [(36,000 shares x $1 par value)]= $36,000 Credit Additional Paid-In Capital [(36,000 shares x ($12-$1))]= $396,000 This entity reflects the cash received and the increase in common stock and additional paid in capital due to the issuance of new shares. 2. Declaration of Cash Dividend (June 1): A cash dividend