Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 1, 2017, Svenberg Inc.'s Stockholders' Equity category appeared as follows: Preferred stock, $80 par value, 8 %, 1,000 shares issued and outstanding Common stock, $10 par value, 10,000 shares issued and outstanding Additional paid-in capital-Preferred Additional paid-in capital-Common Total contributed capital Retained earnings $80,000 Total stockholders' equity The preferred stock is noncumulative and nonparticipating. During 2017, the following transactions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1. b. On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26. The stock was issued on July 1. c. On September 1, declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1. d. On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share. Required: 1. Explain each transaction's effect on the stockholders' equity accounts and the total stockholders' equity. Stockholders' equity 100,000 60,000 225,000 Transaction On March 1, declared a cash dividend of $6,400 on preferred stock Paid the dividend on April 1 On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26 The stock was issued on July 1 On September 1, declared a cash dividend of $0.70 per share on the common stock Paid the dividend on October 1 On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share Total contributed capital $465,000 1,980,000 $2,445,000 Total stockholders' equity 2. Develop the Stockholders' Equity category of the balance sheet. Assume that the net income for the year was $720,000. Do not round interim par value calculations. Svenberg Inc. Partial Balance Sheet December 31, 2017 Effect on total stockholders' equity

On January 1, 2017, Svenberg Inc.'s Stockholders' Equity category appeared as follows: Preferred stock, $80 par value, 8 %, 1,000 shares issued and outstanding Common stock, $10 par value, 10,000 shares issued and outstanding Additional paid-in capital-Preferred Additional paid-in capital-Common Total contributed capital Retained earnings $80,000 Total stockholders' equity The preferred stock is noncumulative and nonparticipating. During 2017, the following transactions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1. b. On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26. The stock was issued on July 1. c. On September 1, declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1. d. On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share. Required: 1. Explain each transaction's effect on the stockholders' equity accounts and the total stockholders' equity. Stockholders' equity 100,000 60,000 225,000 Transaction On March 1, declared a cash dividend of $6,400 on preferred stock Paid the dividend on April 1 On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26 The stock was issued on July 1 On September 1, declared a cash dividend of $0.70 per share on the common stock Paid the dividend on October 1 On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share Total contributed capital $465,000 1,980,000 $2,445,000 Total stockholders' equity 2. Develop the Stockholders' Equity category of the balance sheet. Assume that the net income for the year was $720,000. Do not round interim par value calculations. Svenberg Inc. Partial Balance Sheet December 31, 2017 Effect on total stockholders' equity

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.12MCP
See similar textbooks
icon
Related questions
Question

Can you help me fill this out?

On January 1, 2017, Svenberg Inc.'s Stockholders' Equity category appeared as follows: Preferred stock, $80 par value, 8 %, 1,000 shares issued and outstanding Common stock, $10 par value, 10,000 shares issued and outstanding Additional paid-in capital-Preferred Additional paid-in capital-Common Total contributed capital Retained earnings $80,000 Total stockholders' equity The preferred stock is noncumulative and nonparticipating. During 2017, the following transactions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1. b. On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26. The stock was issued on July 1. c. On September 1, declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1. d. On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share. Required: 1. Explain each transaction's effect on the stockholders' equity accounts and the total stockholders' equity. 100,000 60,000 225,000 Transaction On March 1, declared a cash dividend of $6,400 on preferred stock Paid the dividend on April 1 $465,000 1,980,000 $2,445,000 On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26 The stock was issued on July 1 Stockholders' equity On September 1, declared a cash dividend of $0.70 per share on the common stock Paid the dividend on October 1 On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share Total contributed capital Total stockholders' equity 2. Develop the Stockholders' Equity category of the balance sheet. Assume that the net income for the year was $720,000. Do not round interim par value calculations. Svenberg Inc. Partial Balance Sheet December 31, 2017 Effect on total stockholders' equity
Transcribed Image Text:On January 1, 2017, Svenberg Inc.'s Stockholders' Equity category appeared as follows: Preferred stock, $80 par value, 8 %, 1,000 shares issued and outstanding Common stock, $10 par value, 10,000 shares issued and outstanding Additional paid-in capital-Preferred Additional paid-in capital-Common Total contributed capital Retained earnings $80,000 Total stockholders' equity The preferred stock is noncumulative and nonparticipating. During 2017, the following transactions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1. b. On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26. The stock was issued on July 1. c. On September 1, declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1. d. On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share. Required: 1. Explain each transaction's effect on the stockholders' equity accounts and the total stockholders' equity. 100,000 60,000 225,000 Transaction On March 1, declared a cash dividend of $6,400 on preferred stock Paid the dividend on April 1 $465,000 1,980,000 $2,445,000 On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26 The stock was issued on July 1 Stockholders' equity On September 1, declared a cash dividend of $0.70 per share on the common stock Paid the dividend on October 1 On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share Total contributed capital Total stockholders' equity 2. Develop the Stockholders' Equity category of the balance sheet. Assume that the net income for the year was $720,000. Do not round interim par value calculations. Svenberg Inc. Partial Balance Sheet December 31, 2017 Effect on total stockholders' equity
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS