TR, Inc., has two classes of stock authorized: $100.00 par preferred and $0.01 par value common....

  

 

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TR, Inc., has two classes of stock authorized: $100.00 par preferred and $0.01 par value common. As of the beginning of 20XD, 5,000 shares of preferred stock and 1,000,000 shares of common stock have been issued. Analyze the following transactions as it relates to the Stockholders' Equity accounts (PS, CS, APIC, RE, TS) and then complete the Statement of Stockholders' Equity before answering the questions on the next page. Affect on Stockholders' Equity Accounts Issue 1,000 additional shares of preferred 1-Mar stock for $115 per share 1-Apr Issue 50,000 additional shares of common stock for $20.00 per share Declare a cash dividend on both common and 1-Jun preferred stock of $0.30 per share to all stockholders of record on June 15. 30-Jun Pay the cash dividend declared on June 1. Repurchase 5,000 shares of common treasury 1-Aug stock for $16 per share Sell 3,000 shares of treasury stock purchased 1-Oct on August 1 for $19 per share 31-Dec Net income for the year was $325,000. The beginning balances are shown below. Additional Total Common Paid-in Capital Retained Stock (CS) Preferred Treasury Earnings (RE) Stock (TS) Stockholders Stock (PS) (APIC) Equity Beginning balance 20XD Issuance of stock Net income for the year Dividends Purchase of Treasury Sale of Treasury Ending balance 20XD S500,000 S10,000 $12,580,000 S642,500 so S13,732,500 On June 1st when the dividend was declared, how much did retained earning decrease? 10. $ $ on December 31st. 11. Compute ending retained earnings $ equity on December 31st. 12. Compute ending stockholders' TR, Inc., has two classes of stock authorized: $100.00 par preferred and $0.01 par value common. As of the beginning of 20XD, 5,000 shares of preferred stock and 1,000,000 shares of common stock have been issued. Analyze the following transactions as it relates to the Stockholders' Equity accounts (PS, CS, APIC, RE, TS) and then complete the Statement of Stockholders' Equity before answering the questions on the next page. Affect on Stockholders' Equity Accounts Issue 1,000 additional shares of preferred 1-Mar stock for $115 per share 1-Apr Issue 50,000 additional shares of common stock for $20.00 per share Declare a cash dividend on both common and 1-Jun preferred stock of $0.30 per share to all stockholders of record on June 15. 30-Jun Pay the cash dividend declared on June 1. Repurchase 5,000 shares of common treasury 1-Aug stock for $16 per share Sell 3,000 shares of treasury stock purchased 1-Oct on August 1 for $19 per share 31-Dec Net income for the year was $325,000. The beginning balances are shown below. Additional Total Common Paid-in Capital Retained Stock (CS) Preferred Treasury Earnings (RE) Stock (TS) Stockholders Stock (PS) (APIC) Equity Beginning balance 20XD Issuance of stock Net income for the year Dividends Purchase of Treasury Sale of Treasury Ending balance 20XD S500,000 S10,000 $12,580,000 S642,500 so S13,732,500 On June 1st when the dividend was declared, how much did retained earning decrease? 10. $ $ on December 31st. 11. Compute ending retained earnings $ equity on December 31st. 12. Compute ending stockholders'

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Statement of changes in Equity Preferred Common Additional Paid in Retained Trea... View the full answer