Tracy Regis incorporated Northstar Corp. on May 1, 2014. They are authorized to issue an unlimited...

 

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Tracy Regis incorporated Northstar Corp. on May 1, 2014. They are authorized to issue an unlimited number of common shares and 10,000, $4.00 non-cumulative preferred shares. During May, the following equity transactions occurred: a. Issued 8,000 common shares at $3.90 per share for cash. b. Issued 5,000 preferred shares at $13.30 per share for cash. C. Northstar Corp. reported net income for the month of $63,000, and declared total cash dividends of $28,000 to shareholders of May 31, 2014 payable June 15. 2014. a) Using the information provided above and the following May 31, 2014 selected adjusted account balances prepare the statement of changes in equity for the month ended May 31, 2014 along with the May 31, 2014 classified balance sheet. The list of accounts is incomplete; you will have to add several accounts based on the information provided above. Balance 44,000 (select one) Statement of Changes in Equity Account Accounts Receivable Accumulated Depreciation, Furniture Accumulated Depreciation, Machinery 3,500 (select one) Common Preferred Retained Total Shares Shares Eamings Equity 1,500 Bonds Payable (due September, 2023). Cash Furniture 33,000 68.000 97.000 Interest Payable 21,000 Interest Receivable 9,000 Land Long-Term Notes Payable, Machinery Property Taxes Payable, Supplies 38,000 (select one) 45,000 Balance Sheet 44,000 (select one) 49,000 13,700 b) Use your above answer to answer each of the following questions: What percentage of the total assets are equity financed? What percentage of Northstar Corp. is financed by debt? The common shareholders own what percentage of the total assets? What percentage of the assets are financed by the preferred shareholders? Tracy Regis incorporated Northstar Corp. on May 1, 2014. They are authorized to issue an unlimited number of common shares and 10,000, $4.00 non-cumulative preferred shares. During May, the following equity transactions occurred: a. Issued 8,000 common shares at $3.90 per share for cash. b. Issued 5,000 preferred shares at $13.30 per share for cash. C. Northstar Corp. reported net income for the month of $63,000, and declared total cash dividends of $28,000 to shareholders of May 31, 2014 payable June 15. 2014. a) Using the information provided above and the following May 31, 2014 selected adjusted account balances prepare the statement of changes in equity for the month ended May 31, 2014 along with the May 31, 2014 classified balance sheet. The list of accounts is incomplete; you will have to add several accounts based on the information provided above. Balance 44,000 (select one) Statement of Changes in Equity Account Accounts Receivable Accumulated Depreciation, Furniture Accumulated Depreciation, Machinery 3,500 (select one) Common Preferred Retained Total Shares Shares Eamings Equity 1,500 Bonds Payable (due September, 2023). Cash Furniture 33,000 68.000 97.000 Interest Payable 21,000 Interest Receivable 9,000 Land Long-Term Notes Payable, Machinery Property Taxes Payable, Supplies 38,000 (select one) 45,000 Balance Sheet 44,000 (select one) 49,000 13,700 b) Use your above answer to answer each of the following questions: What percentage of the total assets are equity financed? What percentage of Northstar Corp. is financed by debt? The common shareholders own what percentage of the total assets? What percentage of the assets are financed by the preferred shareholders?

Answer rating: 100% (QA)

a Statement of changes in equity It shows any changes which will take place in equity of the company It includes share capital retained earnings divid... View the full answer