Reference no: EM131132501
The stockholders' equity accounts of Neer Corporation on January 1, 2010, were as follows.
Preferred Stock (8%, $50 par, cumulative, 10,000 shares authorized) $ 400,000
Common Stock ($1 stated value, 2,000,000 shares authorized) 1,000,000
Paid-in Capital in Excess of Par Value-Preferred Stock 100,000
Paid-in Capital in Excess of Stated Value-Common Stock 1,450,000
Retained Earnings 1,816,000
Treasury Stock-Common (10,000 shares) 50,000
During 2010, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb. 1 Issued 25,000 shares of common stock for $120,000.
Apr. 14 Sold 6,000 shares of treasury stock-common for $33,000.
Sept. 3 Issued 5,000 shares of common stock for a patent valued at $35,000.
Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $6,000.
Dec. 31 Determined that net income for the year was $452,000.
No dividends were declared during the year.
Instructions
(a) Journalize the transactions and the closing entry for net income.
(b) Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J5 for the posting reference.)
(c) Prepare a stockholders' equity section at December 31, 2010, including the disclosure of the preferred dividends in arrears.
How much cash was collected from making sales and collecting
: Beginning and ending accounts receivable are $76,000 and $42,000, respectively. Sales for the period total $384,000, of which $40,000 was directly for cash. How much cash was collected from making sales and collecting accounts receivable?
|
What is the cost of equity from retained earnings based
: Assume that you are a consultant to Morton Inc. and you have been provided with the following data: D1 = $1.00; P0 = $25.00; and g = 6% (constant). What is the cost of equity from retained earnings based on the DCF approach?
|
What is the cost of equity from retained earnings
: Heino Inc. hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: rRF = 5.0%; MRP = 5.0%; and b = 1.1. Based on the CAPM approach, what is the cost of equity from retained earnings?
|
What is security expected return
: Based on the following probability distribution what is security expected return?
|
Journalize the transactions and the closing entry
: Prepare a stockholders' equity section at December 31, 2010, including the disclosure of the preferred dividends in arrears.
|
What is the expected return of the following investment
: What is the expected return of the following investment?
|
Jacobsen corporation uses the cost method of accounting
: Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2010, for net income.
|
What is the appropriate required rate of return for a stock
: Suppose rpr 5% rm 12% what is the appropriate required rate of return for a stock that’s equal 1.5?
|
What should be the stock required of return
: The current risk free of return rap is 4 and the market risk premium is 5 percent if the date conifficient associated with firms stock is 2.0 what should be the stock required of return?
|