The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $5...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $5 par value, 300,000 shares authorized, 60,000 shares $300,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value $480,000 From treasury stock 30,000 510,000 Retained earnings 348,000 1,158,000 Less: Treasury stock (6,000 shares) at cost 138,000 Total Stockholders' Equity $1,020,000 The following transactions affecting stockholders' equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $21 cash per share. Mar. 12 Sold all of the treasury shares for $28 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $25 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $26 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders' equity. Net income for the year is $341,000. General Journal Date Description Debit Credit Jan.8 $ Paid-in-Capital in Excess of Par Value Issued shares of common stock. Mar.12 Paid-in-Capital from Treasury Stock Sold shares of treasury stock. Jun.30 Paid-in-Capital in Excess of Par Value Declared stock dividend. Jul.10 Issued shares of common stock declared as dividend. Oct.7 Purchased shares of common stock for treasury. Dec.18 Declared cash dividend. Dec.31 To close the income summary account. Dec.31 Stock dividends To close the dividend accounts. Journal Entries Statement of Stockholders' Equity Note: Use negative signs with your answers when appropriate (reduction to retained earnings, acquired treasury stock and treasury stock balances). Night Corporation Statement of Stockholders' Equity For Year Ended December 31 Paid-in-Capital Common Paid-in-Capital from Retained Treasury Stock in Excess of Par Treasury Stock Earnings Stock Total Balance, January 1 $ $4 2$ $ 2$ 2$ Common shares issued Treasury shares sold Stock Dividends Issued Treasury shares acquired Cash Dividends Declared Net Income Balance, December 31 2$ $4 $ %24 The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $5 par value, 300,000 shares authorized, 60,000 shares $300,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value $480,000 From treasury stock 30,000 510,000 Retained earnings 348,000 1,158,000 Less: Treasury stock (6,000 shares) at cost 138,000 Total Stockholders' Equity $1,020,000 The following transactions affecting stockholders' equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $21 cash per share. Mar. 12 Sold all of the treasury shares for $28 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $25 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $26 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders' equity. Net income for the year is $341,000. General Journal Date Description Debit Credit Jan.8 $ Paid-in-Capital in Excess of Par Value Issued shares of common stock. Mar.12 Paid-in-Capital from Treasury Stock Sold shares of treasury stock. Jun.30 Paid-in-Capital in Excess of Par Value Declared stock dividend. Jul.10 Issued shares of common stock declared as dividend. Oct.7 Purchased shares of common stock for treasury. Dec.18 Declared cash dividend. Dec.31 To close the income summary account. Dec.31 Stock dividends To close the dividend accounts. Journal Entries Statement of Stockholders' Equity Note: Use negative signs with your answers when appropriate (reduction to retained earnings, acquired treasury stock and treasury stock balances). Night Corporation Statement of Stockholders' Equity For Year Ended December 31 Paid-in-Capital Common Paid-in-Capital from Retained Treasury Stock in Excess of Par Treasury Stock Earnings Stock Total Balance, January 1 $ $4 2$ $ 2$ 2$ Common shares issued Treasury shares sold Stock Dividends Issued Treasury shares acquired Cash Dividends Declared Net Income Balance, December 31 2$ $4 $ %24
Expert Answer:
Answer rating: 100% (QA)
Statement of Shareholders equity in thousands Night Corporation Journal entries PIC in excess PIC fr... View the full answer
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
The stockholders equity section of Tootsie Roll Industries balance sheet is shown in the Consolidated Statement of Financial Position in Appendix A. You will also find data relative to this problem...
-
On January 1, 2012, the stockholders equity section of Joshua Corporation shows: Common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,200,000....
-
On January 1, 2011, the stockholders equity section of Rowen Corporation shows: common stock ($5 par value) $1,500,000; paid-in capital in excess of par value $1,000,000; and retained earnings...
-
In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method...
-
Equipment costing $76,000 was purchased by Spence, Inc., at the beginning of the current year. The company will depreciate the equipment by the declining-balance method, but it has not determined...
-
What happens upon default when a floating charge has been used to secure a debt? What is the main advantage of using floating charges?
-
The 2015 annual report of Bristol-Myers Squibb (BMS) reveals that the company maintains a large investment in available-for-sale securities: Did the companys available-for-sale securities experience...
-
Transfer Pricing Case AMP Industries is a multi-national firm built around batteries and the use of batteries in the automotive industry. AMP Industries is made up of two divisions, a Battery...
-
Manufacturing cost data for Cullumber Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is...
-
Champion Inc. purchased a call option as a speculative investment on January 1 for $125, allowing Champion Inc. to purchase 200 of Rising Star Co. common shares at $100 per share through January 1 of...
-
Solve. |x|-25>-11 If all real numbers are solutions, click on "Al reals".
-
In your opinion, what six sigma tool(s) provides for the best visual in determining a root cause for a defect, and why?
-
A payment on a loan is $650 a month for 6 years. The principle was $25,000. What was the simple interest rate? Write as a percent with one decimal place.
-
John Professional has prepared Sue Smith's FTB Form 540 for the current tax year. In compliance with California requirements, the tax return will be e-filed, but Sue does not want to use the ERO PIN...
-
How do advanced systems thinking approaches illuminate the interconnectedness of organizational subsystems and stakeholders, and how can holistic system redesign methodologies foster sustainable,...
-
5) Write a Fortran program to compute geometric information for a kite. The program should read the a, cand p lengths and compute the q length. The program should display an appropriate prompt, read...
-
Provide a spreadsheet for the following question: On page 128 of your text, the authors describe the rollout of the Tesla Model 3 starting in quarter 3 of 2017. The context for the problem was...
-
Coastal Refining Company operates a refinery with a distillation capacity of 12,000 barrels per day. As a new member of Coastal's management team, you have been given the task of developing a...
-
Ned Douglas owns Ned's Blankets. Ned asks you to explain how he should treat the following reconciling items when reconciling the company's bank account. 1. Outstanding checks. 2. A deposit in...
-
A friend of yours, Saira Ortiz, recently completed an undergraduate degree in science and has just started working with a biotechnology company. Saira tells you that the owners of the business are...
-
On November 1, 2017, IKonk, Inc. had the following account balances. The company uses the perpetual inventory method. During November, the following summary transactions were completed. Nov. 8 Paid...
-
On whom is the FICA tax levied? What does the FICA tax finance?
-
What are two examples of voluntary deductions from an employee's gross pay?
-
What is the difference between accounting for product warranties on (a) failed units repaired in the month of sale and (b) failed units repaired in a subsequent month but that are still covered by...
Study smarter with the SolutionInn App