Penny Worth Corporation, a publicly traded company, was organized on January 1, 2021. It is authorized...
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Penny Worth Corporation, a publicly traded company, was organized on January 1, 2021. It is authorized to issue an unlimited number of $3 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: Jan. 10 Issued 1,000,000 common shares for $2 per share. Issued 18,000 preferred shares for $50 per share. Issued 250,000 common shares for $3 per share. Repurchased and retired 9,000 common shares at $2 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Mar. 1 May 1 June 1 July 24 Issued 33,700 common shares for $108,000 cash and used equipment. The equipment would have cost $28,000 if Remmers had purchased it new and a recent appraisal determined that the equipment had a fair value of $15,000. The common shares were trading for $4 per share on this date. Issued 9,000 common shares for $5 per share. Issued 4,300 preferred shares for $50 per share. Repurchased and retired 14,000 common shares at $4 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Sept. 4 Nov. 1 20 Dec. 14 31 Declared a $75,000 cash dividend to the preferred shareholders, to shareholders of record on December 31, payable on January 10. Reported net income of $1.27 million for the year. Open T accounts and post to the shareholders' equity accounts. (Record entries in the order presented in the problem.. Preferred Shares Common Shares 700⁰0] Contributed Surplus Dividends Declared Retained Earnings Prepare the shareholders' equity section of the statement of financial position at December 31. (Enter account name only and do not provide descriptive information.) PENNYWORTH CORPORATION Statement of Financial Position (Partial) Penny Worth Corporation, a publicly traded company, was organized on January 1, 2021. It is authorized to issue an unlimited number of $3 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: Jan. 10 Issued 1,000,000 common shares for $2 per share. Issued 18,000 preferred shares for $50 per share. Issued 250,000 common shares for $3 per share. Repurchased and retired 9,000 common shares at $2 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Mar. 1 May 1 June 1 July 24 Issued 33,700 common shares for $108,000 cash and used equipment. The equipment would have cost $28,000 if Remmers had purchased it new and a recent appraisal determined that the equipment had a fair value of $15,000. The common shares were trading for $4 per share on this date. Issued 9,000 common shares for $5 per share. Issued 4,300 preferred shares for $50 per share. Repurchased and retired 14,000 common shares at $4 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Sept. 4 Nov. 1 20 Dec. 14 31 Declared a $75,000 cash dividend to the preferred shareholders, to shareholders of record on December 31, payable on January 10. Reported net income of $1.27 million for the year. Open T accounts and post to the shareholders' equity accounts. (Record entries in the order presented in the problem.. Preferred Shares Common Shares 700⁰0] Contributed Surplus Dividends Declared Retained Earnings Prepare the shareholders' equity section of the statement of financial position at December 31. (Enter account name only and do not provide descriptive information.) PENNYWORTH CORPORATION Statement of Financial Position (Partial)
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Date 10Jan 1Mar 1May 1Jun 24Jul 4Sep 1Nov Account titles explanation Cash Ac Common Share Ac 10... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
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