PROBLEM 1 The New Fashions Company started operations on January 1, 2010. The company obtained a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
PROBLEM 1 The New Fashions Company started operations on January 1, 2010. The company obtained a charter and was authorized to issue 3,000,000 shares of common stock with a par value of $2.50 and 500,000 shares of preferred stock 4% par value $8. The preferred stock is current, cumulative. The following transactions and information pertain to the 2013 fiscal year: 1. The company had the following ending balances for 2012: a. Retained Earnings: $450,000. b. Common Stock: $1,250,000 C. APIC: $9,750,000 d. Preferred Stock: $200,000 $175,000 e. Preferred APIC: 2. Issued 50,000 shares of common stock when the stock was trading at $25.00 per share. 3. Issued 10,000 shares of preferred stock when the stock was trading at $32.00 per share. 4. Repurchased 10,000 of commons stock when the stock was trading at $15.00 per share. 5. Issued an additional 25,000 shares of common stock when the stock was trading at $20.00 per share. 6. Resold 5,000 shares of the treasury stock when the stock was trading at $25.00 per share. 7. The company declared a cash dividend of $25,000. 8. The company recorded net income for the year of $125,000. A. At the end of 2013, how many shares of preferred stock were outstanding? B. At the end of 2013, how many shares of common stock were outstanding? C. For the dividends declared in 2013 how much will be paid to preferred stock holders and how much will be paid to common stock holders? No dividends were paid prior to 2013. Amount paid to preferred stock holders:__ Amount paid to common stock holders:_ PROBLEM 1 The New Fashions Company started operations on January 1, 2010. The company obtained a charter and was authorized to issue 3,000,000 shares of common stock with a par value of $2.50 and 500,000 shares of preferred stock 4% par value $8. The preferred stock is current, cumulative. The following transactions and information pertain to the 2013 fiscal year: 1. The company had the following ending balances for 2012: a. Retained Earnings: $450,000. b. Common Stock: $1,250,000 C. APIC: $9,750,000 d. Preferred Stock: $200,000 $175,000 e. Preferred APIC: 2. Issued 50,000 shares of common stock when the stock was trading at $25.00 per share. 3. Issued 10,000 shares of preferred stock when the stock was trading at $32.00 per share. 4. Repurchased 10,000 of commons stock when the stock was trading at $15.00 per share. 5. Issued an additional 25,000 shares of common stock when the stock was trading at $20.00 per share. 6. Resold 5,000 shares of the treasury stock when the stock was trading at $25.00 per share. 7. The company declared a cash dividend of $25,000. 8. The company recorded net income for the year of $125,000. A. At the end of 2013, how many shares of preferred stock were outstanding? B. At the end of 2013, how many shares of common stock were outstanding? C. For the dividends declared in 2013 how much will be paid to preferred stock holders and how much will be paid to common stock holders? No dividends were paid prior to 2013. Amount paid to preferred stock holders:__ Amount paid to common stock holders:_
Expert Answer:
Answer rating: 100% (QA)
A B C D Outstanding Preferred stock 2000008 Add no of preferred stock at the beginning 2... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A company has common stock with $20 par value per share. During 2020, the following transactions occurred: 8,000 shares were reacquired at $26 per share. 8,000 shares were reacquired at $32 per...
-
Assume that 2,000 shares of common stock with a par value of $12 and a market price of $16 per share are issued in exchange for land with a fair market value of $32,000. a. Prepare the journal entry...
-
Which of the following production functions are homethetic? Which are homogeneous? Briefly explain. [Hint: use definitions A.13 and A.14 in Appendix A.] 1. (z) = 21 22 2. 3. 4. 20.10.2 5. 6. (z) =...
-
(1.0.5) (2, 2) (1,0) lim f(x) #-1+ For this part, no explanation is needed. Use the graph to calculate the limits: (2,1) lim f(x) 2-2+ lim f(x) 2-1 For this part, no explanation is needed. Use the...
-
Is anything questionable about the relationship between retained earnings and income for the Anycompany data shown in Exhibit? PRIOR YEAR CURRENT YEAR CHANGE COMMON SIZE ANALYSIS COMMON SIZE ANALYSIS...
-
A Dubosq colorimeter consists of a cell of fixed path length and a cell of variable path length. By adjusting the length of the latter until the transmission through the two cells is the same, the...
-
Confirm that the definition of the streamfunction given in the text satisfies the continuity equation. Use this in the N-S equation and derive the form for the \(E^{4}\) operator in spherical...
-
The wearever Shoe Company is going to open a new branch at a mall, and company manager are attempting to determine how many sales-people to hire Based on an analysis of mall traffic. The company...
-
Horton Manufacturing Incorporated produces blinds and other window treatments for residential homes and offices. The owner is concerned about the maintenance costs for the production machinery...
-
You receive the following letter. Quark Pty Ltd. 500 Mowbray ROAD LANE COVE, NSW 2066 8 Sept 2018 Greetings, Quark Pty Ltd is a trader of machine parts. Its annual turnover in the last five years...
-
What is the matter? Explain the types of matters and their uses in our daily life?
-
Which of the following revenues would typically not be classified as a general revenue on the Statement of Activities? a. Property taxes. b. Sales taxes. c. Unrestricted grant. d. Parking fines. e....
-
Which of the following is not a common characteristic of a VHWO? a. Typically, no fees or only minimal fees are charged for services that a VHWO provides. b. Resource providers are typically the...
-
Virgie Township is retiring Enterprise Fund bonds before their maturity date. How does the difference between the amount paid to retire the debt and the carrying value of the debt affect interest...
-
When a capital asset of a department reported in a proprietary fund is transferred to a general government department, the effect of the transaction is reported as: a. a transfer in both the...
-
When capital assets purchased from General Fund revenues were received, the appropriate journal entry was made in the General Capital Assets accounts. What account, if any, should have been debited...
-
Sloan Inc. is considering the purchase of new equipment. Estimates of the cost of two machines are provided below. Original Cost Estimated Useful Life Salvage Value Estimated Annual Cash Inflows...
-
Explain the regulation of the secretions of the small intestine.
-
Outer Reaches, Inc. is a leading ï¬rm in the aerospace and defense industries. The following selected ï¬nancial data (in millions) are for three years. The companys ï¬scal...
-
Myancor Corp. had the following balances in its Equipment and Accumulated Depreciation-Equipment accounts at the beginning and end of 2009. March 9 Purchased new equipment for $120,000. July 16 Sold...
-
Sandford, Inc. makes three types of products: ties, blouses, and shirts. The following selling prices and variable costs are expected for 2009. In addition, ï¬xed costs are as follows: Fixed...
-
Match the terms in the first column with an appropriate definition from the second column. Terms (a) Breakeven analysis (b) Sensitivity analysis (c) Risk analysis Definitions (1) Determining how the...
-
Cecils Manufacturing is considering producing a new product. The sales price would be \($10.25\) per unit. The cost of the equipment is \($100,000.\) Operating and maintenance (O&M) costs are...
-
The Fence Company is setting up a new production line to create top rails. The relevant data for two alternatives are shown below. a. Based on MARR of 8 percent, determine the annual rate of...
Study smarter with the SolutionInn App