Reference no: EM131293664
Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing Inc. on July 31, the end of the current year: (1) Common Stock, $32par - $8,755,200. (2) Paid in Capital from Sale of Treasury Stock-Common $342,000. (3) Paid in Excess of Par-Common Stock $2,736,000. (4) Paid in Excess of Par-Preferred Stock $481,500. (5) Preferred 1% Stock, $150 par $7,222,500. (6) Retained Earnings $74,660,900. (7) Treasury Stock-Common $1,020,800.
Fifty thousand shares of preferred and 300,000 shares of common stock are authorized. There are 23,200 shares of common stock held as treasury stock
Accounts and Amount Descriptions
Common stock, $32 par; 300,000 shares authorized, 273,600 issued; Common stock dividends; Excess of issue price over par; From sale of treasury stock; Increase in retained earnings; Preferred 1% stock, $150 par; 50,000 shares authorized, 48,150 shares issued; Preferred stock dividends; Retained earnings; Total; Total contributed capital; Total paid-in capital; Total stockholders’ equity; Treasury common stock; 23,200 shares at cost.
Prepare the Stockholders’ Equity section of the balance sheet as of July 31, the end of the current year using Method 1 of Exhibit 7. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Deduct” will automatically appear if required.
Speciality Auto Racing Inc / Stockholder's Equity / July 31
1. Paid in Capital
2.
3.
4.
5.
6.
7.
8.
9.
10.
11
|
Discuss how federal taxation system is driven by economic
: Consider Adam Smith's canons of taxation. Identify one of his ideas and post your thought on its applicability to the current income tax system in the United States. In a follow up post, discuss how the federal taxation system is driven by economic a..
|
|
Events represent business transactions
: Do the following events represent business transactions?
|
|
Prepare the journal entry to record the redemption
: The balance sheet for Miley Consulting reports the following information on July 1, 2014. Long-term liabilities Bonds payable $1,040,000 Less: Discount on bonds payable 83,200 $956,800 Miley decides to redeem these bonds at 101 after paying semiannua..
|
|
Record the mortgage loan and first two installment payments
: Jernigan Co. receives $226,800 when it issues a $226,800, 14%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $18,900 on June 30 and December 31. Prepare ..
|
|
Balances appear in the ledger of specialty auto racing
: Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing Inc. on July 31, the end of the current year: Common Stock, $32par - $8,755,2..
|
|
Prepare the journal entries to record each bond transaction
: Frankum Company has issued three different bonds during 2014. Interest is payable semiannually on each of these bonds. 1. On January 1, 2014, 1,110, 8%, 5-year, $1,000 bonds dated January 1, 2014, were issued at face value. 2. On July 1, $877,400, 9%..
|
|
Raw materials budget with cash disbursement
: Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operation: Prepare the following budgets for July and August: Sales budget with cash collections. Production ..
|
|
What tax savings do they receive from investment expense
: Rich and Shauna Nielson file a joint tax return, and they itemize deductions. Assume their marginal tax rate on ordinary income is 25 percent. The Nielsons incur $2,650 in miscellaneous itemized deductions, excluding investment expenses. They also in..
|
|
Prepare the journal entries to record the sale-collections
: On December 1, 2016, Lynch Incorporated sold $18,000 of merchandise with terms 2/10, n/EOM. On December 11, 2016, collections were made on sales originally billed for $12,000, and on December 31, 2016, additional collections on sales originally bille..
|