Required information [The following information applies to the questions displayed below] National League Gear has two classes of stock authorized: 6%, $20 par preferred, and $5 par value common. The following transactions affect stockholders' equity during 2024, National League's first year of operations: February 4 February 2 Issue 1.0 million shares of common stock for $25 per share. Issue 500,000 shares of preferred stock for $22 per share.. Purchase 100,000 shares of its own common stock for $20 per share. Resell 75,000 shares of treasury stock for $35 per share. Declare a cash dividend on its common stock of $1.00 per share and a $600,000 (6% 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.) June 15 August 15 November 1 November 30 Pay the dividends declared on November 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $4,800,000. (Amounts to be deducted should be indicated by a minus sign.) National League Gear Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Preferred Stock Common Stock Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholdere Fritu $10,000,000 5,000,000 15,000,000 $15.000.000
Required information [The following information applies to the questions displayed below] National League Gear has two classes of stock authorized: 6%, $20 par preferred, and $5 par value common. The following transactions affect stockholders' equity during 2024, National League's first year of operations: February 4 February 2 Issue 1.0 million shares of common stock for $25 per share. Issue 500,000 shares of preferred stock for $22 per share.. Purchase 100,000 shares of its own common stock for $20 per share. Resell 75,000 shares of treasury stock for $35 per share. Declare a cash dividend on its common stock of $1.00 per share and a $600,000 (6% 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.) June 15 August 15 November 1 November 30 Pay the dividends declared on November 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $4,800,000. (Amounts to be deducted should be indicated by a minus sign.) National League Gear Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Preferred Stock Common Stock Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholdere Fritu $10,000,000 5,000,000 15,000,000 $15.000.000
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 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...
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