+1-415-670-9189
info@expertsmind.com
The stockholders equity accounts of hashmi company
Course:- Accounting Basics
Reference No.:- EM131134559




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

The stockholders' equity accounts of Hashmi Company at January 1, 2010, are as follows.

Preferred Stock, 6%, $50 par ............ $600,000
Common Stock, $5 par ............... 800,000
Paid-in Capital in Excess of Par Value-Preferred Stock ... 200,000
Paid-in Capital in Excess of Par Value-Common Stock ... 300,000
Retained Earnings .................. 800,000

There were no dividends in arrears on preferred stock. During 2010, the company had the following transactions and events.

July 1 Declared a $0.50 cash dividend on common stock.
Aug. 1 Discovered $25,000 understatement of 2009 depreciation. Ignore income taxes.
Sept. 1 Paid the cash dividend declared on July 1.
Dec. 1 Declared a 10% stock dividend on common stock when the market value of the stock was $18 per share.
15 Declared a 6% cash dividend on preferred stock payable January 15, 2011.
31 Determined that net income for the year was $355,000.
31 Recognized a $200,000 restriction of retained earnings for plant expansion.

Instructions

(a) Journalize the transactions, events, and closing entry.

(b) Enter the beginning balances in the accounts, and post to the stockholders' equity accounts.

(c) Prepare a retained earnings statement for the year.

(d) Prepare a stockholders' equity section at December 31, 2010.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
How the case compares and contrasts with the organization's stance/response in the textbook case study, as well as how the LexisNexis case furthers your understanding of iss
Regis Philman, a long-time client of mine. Regis inherited a large investment portfolio from his grandfather. The securities are held in street name by his brokerage firm,
Lynn transfers land having a $50,000 adjusted basis, an $80,000 FMV and $10,000 cash to Allied Corporation in exchange for 100% of Allied's stock. The corporation assumes th
The last dividend paid by XYZ Company was $1.00. XYZs growth rate is expected to be a constant 5 percent. XYZ's required rate of return on equity (ks) is 10 percent. What is
Suppose both Company A and B entered into the 3-year swaps with the swap bank. One year after the inception of the 3-year swaps, the swap bank quotes 2-year interest rate sw
Discuss the issues and complications that may arise when multinational corporations conduct performance measurement and comparisons among divisions located in different coun
Grand Products is a price-setter, and they use cost-plus pricing methodology for pricing their products which are unique, artistically designed architectural decorations.
Prepare a 700- to 1,050-word paper comparing and contrasting current and noncurrent assets. In your paper be sure that you address the following: