The stockholders equity of ARCOS, Ltd. at January 1 st , 2021 is as follows: ARCOS, Ltd
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Question:
The stockholders equity of ARCOS, Ltd. at January 1st, 2021 is as follows:
ARCOS, Ltd | |||
Stockholders equity | |||
1 January 2021 | |||
Common stock, $10 par value | 3.000.000 | ||
Additional paid in capital common stocks | 6.000.000 | ||
Retained earnings | 1.000.000 | ||
Total stockholders Equity | 10.000.000 |
On 21th of July, the company issued $1,000,000 10% non cumulative preferred stocks for $1,100,000 On 24th of August, the company purchased 100,000 treasury stocks at a price of $25 per share On September 15, the company reissued 90,000 of its treasury stocks for $27 per share The company expects an income before interests and taxes of $2,500,000 at December 31, 2021 Corporation tax is at a 25% rate.
1. Prepare the stockholders equity section of the balance sheet at December 31, 2021
2. Calculate the maximum dividend / share of common stock at December 31, 2021
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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