!Required information[The following information applies to the questions displayed below.]National League Gear has two classes of stock authorized: 4%, $20 par preferred, and $5 par value common. Thefollowing transactions affect stockholders' equity during 2024, National League's first year of operations:February 2February 4June 15August 15November 1Issue 1.4 million shares of common stock for $29 per share..Issue 540,000 shares of preferred stock for $23 per share.Purchase 140,000 shares of its own common stock for $24 per share.Resell 105,000 shares of treasury stock for $39 per share.Declare a cash dividend on its common stock of $1.40 per share and a $432,000 (4 of par value)cash dividend on its preferred stock payable to all stockholders of record on November 15. (Hint:Dividends are not paid on treasury stock.)November 30 Pay the dividends declared on November 1.Required:1. Record each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the firstaccount field.)<View transaction listJournal entry worksheet1 2 3 4 5Record the issuance of 1.4 million shares of common stock for $29 per share.Note: Enter debits before credits.Date:February 02, 2024Record entryGeneral JournalClear entryDebitCreditView general Journal*** National League GearBalance Sheet(Stockholders' Equity Section)December 31, 2024Stockholders' Equity:4Total Paid-in CapitalTotal Stockholders' Equity00

Stockholder's Equity includes Common Stock, Preferred Stock, treasury stock, Paid in Capital,…

Answered: Required: 1. Record each of these…

Required: 1. Record each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

See similar textbooks

Similar questions

Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?
Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
! Required information [The following information applies to the questions displayed below] Golf Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 100,000 shares of common stock for $55 per share. February 14 Issue 45,000 shares of preferred stock for $11 per share. May 8 May 31 December 1 Purchase 10,000 shares of its own common stock for $45 per share. Resell 5,000 shares of treasury stock for $50 per share. Declare a cash dividend on its common stock of $0.75 per share and a $22,500 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. Required: account field.) 1. Record each of these transactions. (If no entry is required for a…
Required information [The following information applies to the questions displayed below.] Golf Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 100,000 shares of common stock for $58 per share. Issue 48,000 shares of preferred stock for $11 per share. February 14 May 8 May 31 December 1 Purchase 10,000 shares of its own common stock for $48 per share. Resell 5,000 shares of treasury stock for $53 per share. Declare a cash dividend on its common stock of $0.60 per share and a $24,000 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. Required: 1. Record each of these transactions. (If no entry is required for a…
Required information [The following information applies to the questions displayed below.] Tennis Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 120,000 shares of common stock for $53 per share. Issue 43,000 shares of preferred stock for $13 per share. February 14 May 8 May 31 December 1 Purchase 12,000 shares of its own common stock for $43 per share. Resell 6,000 shares of treasury stock for $48 per share. Declare a cash dividend on its common stock of $0.40 per share and a $17,200 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net…
The equity section of San Antonio Mfg's statement of financial position as of December 31, 2021 is as follows: Ordinary shares, 5-par value; authorized, 2,000,000 shares; issued, 400,000 shares .... 2,000,000 Share premium 850,000 Retained earnings 3,000,000 5,850,000 The following events occurred during 2022: Jan. 5 10,000 shares were sold for 9 - per share 16 Declared a cash dividend of 0.40 per share, payable on Feb. 15 to shareholders of record on Feb. 5 Feb. 10 40,000 shares were sold for 11 per share Mar. 1 A 40% share dividend was declared and issued. Market value per share is currentiv 15 Apr. 1 A 2-for-1 split was carried out. The par value of the share was to be reduced to 2.50 per share. Market value on March 31 was 18 per sh. July 1 A 10% share dividend was declared and issued. Market value is currently 10 per share. Aug. 1 A cash dividend of 0.40 per share was declared, payable Sept. 1 to shareholders of record on Aug. 21.Dec. 31 Profit for 2022 was 1,880,000 Based on…
Required information [The following information applies to the questions displayed below.] Golf Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 100,000 shares of common stock for $58 per share. Issue 48,000 shares of preferred stock for $11 per share. February 14 May 8 May 31 December 1 Purchase 10,000 shares of its own common stock for $48 per share. Resell 5,000 shares of treasury stock for $53 per share. Declare a cash dividend on its common stock of $0.60 per share and a $24,000 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net…
Required Information [The following information applies to the questions displayed below] Donnie Himger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2024, 300 shares of preferred stock and 4,000 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024 March 1 Play 15 July 10 October 15 December 1 Issue 1,100 shares of common stock for $42 per share. Purchase 400 shares of treasury stock for $35 per share. Resell 200 shares of treasury stock purchased on May 15 for $40 per share. Issue 200 shares of preferred stock for $45 per share. Declare a cash dividend on both common and preferred stock of $0.50 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2024:…