1 SP 2007 fil aoye/Downloads/HW4Spring2016BUS201 pdf Problem #2: Equity Amounts
ID: 2414924 • Letter: 1
Question
1 SP 2007 fil aoye/Downloads/HW4Spring2016BUS201 pdf Problem #2: Equity Amounts (24 points) Presented below is information extracted from the accounting records and GAAP financial statements of Dump Truck Pool Party Supplies Corp. Required: Analyze the facts provided below. Complete the statement of equity for Dump Truck Pool Party Supplies Corp. for 2016 using the form provided. a. In its balance sheet at December 31, 2015, Dump Truck Pool Party Supplies Corp. reported: Dump Truck Pool Party Supplies Corp. Stockholders' Equity December 31, 2015 Stockholders' equity Common stock, $1.50 par value, issued and outstanding 2,150,000 shares Additional paid-in capital Retained earnings s 3,225,000 7,525,000 2,750,000 450.000 $13.950.000 other comprehensive income Total stockholders' equity Enter the relevant amounts into the appropriate line of the statement of equity. (4 points) On January 1, 2016, issued 600,000 shares of common stock at $8.00 per share. Determine the effects of issuance of stock on the following accounts. b.Explanation / Answer
b) common stock par value recorded on jan 1st 2016 is 600,000 shares at par value $1.5 each = $900,000
Additional paid up capital received on jan 1st 2016 on 600,000 shares is (8-1.5)= $6.5 per share multipy with 600,000 shares = $3,900,000
C) Total common shares outstanding after issuung shares on 1st jan 2016 are (2,150,000 shares + 600,000 shares) = 2,750,000
d) cash dividend paid on dec 1st 2016 are,
Total outstanding share = 2,750,000 * $2.5 per share = 6,875,000
2)
Share holders equity: Amount in $ Common stock $1.5 par value, issued and outstanding 2,750,000 shares 4,125,000 Additional paid up capital (7,525,000 opening bal + issued 3,900,000) 11,425,000 Retained earnings ( opening bal 2,750,000 - dividend paid 6,875,000) = unadjusted dividend = 4,125,000 nil Accumulated other comprehensive income ( open bal 450,000 + current year profit- bal unadjusted dividend) = 450,000 + 9,530,000 - 4,125,000 5,855,000 Total share holders equity 21,405,000Related Questions
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