The Meredith Co had the following Stockholders Equity Transactions during 2020. Their beginning retained earnings going into
Question:
The Meredith Co had the following Stockholders’ Equity Transactions during 2020.
Their beginning retained earnings going into FY 2020 was $290,000.
• Jan 10, Issued 38,000 par value $1 shares of common stock for $68 cash per share
• Jan 23, Repurchased 12,000 shares of common stock at $62 a share
• Mar 14, Sold 4000 of treasury shares attained on Jan 23 for $71 per share.
• July 31, Declared and paid a $1.30 dividend on all common stock shares outstanding.
1) For each transaction, record it in the corresponding Financial Statement Impact template.
2) Using the new totals in the Financial Statement Impact template, prepare the December 31, 2020 stockholders’ equity section of the balance sheet. Assume the company’s 2020 net income is $521,000.
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen