Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.96CEP
(Learning Objectives 2, 3, 4, 6: Analyze information from stockholders’ equity) The stockholders' equity of Bowling Green Uniforms as of December 31, 2018 and 2017, follows:
| 2018 | 2017 | ||
| Common stock, 1,700,000 shares authorized, 850,000 and 650,000 shares issued, respectively | $ 340,000 | $ 260,000 | |
| Paid-in capital in excess of par | 34,170,000 | 26,470,000 | |
| Paid-in capital- |
57,000 | 56,000 | |
| Retained earnings | 71,087,500 | 60,000,000 | |
| Treasury stock, at cost, 50,000 and 55,000 shares, respectively | (2,293,000) | 2,519,000) | |
| Total stockholders’ equity | $103,364,500 | $84,267,000 | |
Requirements
- 1. What is the par value of the common stock?
- 2. How many shares of common stock were outstanding at the end of 2018?
- 3. As of December 31, 2018, what was the average price that stockholders paid for all common stock when issued?
- 4. Prepare a summary
journal entry to record the change in common stock during the year. - 5. What was the average price that stockholders paid for the common stock issued in 2018?
- 6. What was the average price paid by Bowling Green Uniforms for the treasury stock at December 31, 2018?
- 7. Prepare a summary journal entry to record the change in treasury stock during the year.
- 8. Assuming net income for 2018 was $13,000,000, prepare a summary journal entry to record the dividends declared during 2018.
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Following is the stockholders' equity section of the 2018 Merck & Co. Inc. balance sheet.
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Chapter 10 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
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