Required:

1. On January 1, 20x5, JV purchased 1,000 of its own common shares for $23 each. Use the cost method.

2. On March 1, 20x5, JV reissued 500 of the shares acquired on January 1 at $33.

3. On June 30, the JV's Board of Directors increased the appropriation for contingencies to $75,000.

4. On October 1, JV received land valued at $100,000 as a gift from the city of Garden Ridge as an incentive to locate a plant in its jurisdiction.

5. On December 15, JV declared the annual 6 percent cash dividend on preferred stock. No dividends were in arrears.  No common stock dividend was declared.

6. On December 31, JV prepared the closing entry for its $100,000 net income and the dividends declared on preferred stock.   

Transcribed Image Text:

JV Company's comparative stockholders' equity accounts at at December 31, 20x4 and 20x5 are shown below. Number your text box from g-l, and enter the descriptions or amounts (showing calculations to the side for each amount for partial credit) for each item. The only transactions that affected stockholders' equity during 20x5 are shown below. Assume that JV uses ONLY ONE additional paid-in capital account, regardless of origin. JV's charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock. The transactions listed below are the only ones that occurred related to stockholders' equity during 20x5: 8% Preferred stock, $100 par, g_ Common stock, $10 Par, 100,000 shares authorized, 50,000 shares issued, and outstanding Additional paid-in capital Unappropriated retained earnings Appropriation for contingencies less Treasury stock Total stockholders' equity 20x4 $ 50,000 500,000 200,000 250,000 50,000 0 20x5 XXXXXXXXXXXXXXXXXXXXXXXXXXX h i j k 1 XXXXX XXXXX XXXXXXXXXXXXXXXXXX XXXXXXXX JV Company's comparative stockholders' equity accounts at at December 31, 20x4 and 20x5 are shown below. Number your text box from g-l, and enter the descriptions or amounts (showing calculations to the side for each amount for partial credit) for each item. The only transactions that affected stockholders' equity during 20x5 are shown below. Assume that JV uses ONLY ONE additional paid-in capital account, regardless of origin. JV's charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock. The transactions listed below are the only ones that occurred related to stockholders' equity during 20x5: 8% Preferred stock, $100 par, g_ Common stock, $10 Par, 100,000 shares authorized, 50,000 shares issued, and outstanding Additional paid-in capital Unappropriated retained earnings Appropriation for contingencies less Treasury stock Total stockholders' equity 20x4 $ 50,000 500,000 200,000 250,000 50,000 0 20x5 XXXXXXXXXXXXXXXXXXXXXXXXXXX h i j k 1 XXXXX XXXXX XXXXXXXXXXXXXXXXXX XXXXXXXX

Answer rating: 100% (QA)

To answer these questions we will address each item one by one and determine the effect on JV Companys stockholders equity accounts We will use the cost method for treasury stock transactions and then ... View the full answer