Telex Inc. Balance Sheet December 31, 20Y7 Stockholders' Equity Paid-in capital: Preferred 10% stock, $50 par (2,000 shares authorized and issued) $100,000 10,000 Excess of issue price over par. $ 110,000 Paid-in capital, preferred stock. Common stock, $20 par (50,000 shares authorized, 45,000 shares issued). Excess of issue price over par.. Paid-in capital, common stock From sale of treasury stock. Total paid-in capital, $900,000 190,000 1,090,000 2,000 $1,202,000 350,000 $1,552,000 (27,000) $1,525,000 Retained earnings. Total Treasury stock (600 shares at cost). Total stockholders' equity

Telex Inc. Balance Sheet December 31, 20Y7 Stockholders' Equity Paid-in capital: Preferred 10% stock, $50 par (2,000 shares authorized and issued) $100,000 10,000 Excess of issue price over par. $ 110,000 Paid-in capital, preferred stock. Common stock, $20 par (50,000 shares authorized, 45,000 shares issued). Excess of issue price over par.. Paid-in capital, common stock From sale of treasury stock. Total paid-in capital, $900,000 190,000 1,090,000 2,000 $1,202,000 350,000 $1,552,000 (27,000) $1,525,000 Retained earnings. Total Treasury stock (600 shares at cost). Total stockholders' equity

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 15.4CPP: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,...

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Assume the capital structure of XYZ Company: Bonds payable, 10% . . . . . . . 500,000 Preferred stock, 8%, P100 par . . . . . . . . 100,000 Common stock, 100,000 shares. . . . . . . 400,000 Other data shows as follows: Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 Variable costs. . . . . . . . . . . . . . . . . . . . . . 362,500 Fixed Operating costs. . . . .. . . . . . . . . . . 187,500 Income tax rate . . . . . . . . . . . . . . . 30% Dividend growth rate . . . . . . . . . . . . . . . . 2% Current market price: Common stock. . . . . . . . . . . . . P5/share Preferred stock. . . . . . . . . . . . . P160/share Transaction costs: Common stock. . . . . . . . . . . . . . P1/share Preferred stock. . . . . . . . . . . . . . P 10/share What is the cost of issuing preferred securities?
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The year end balance sheet of CP, In., include the following stockholders’ equity section (with certain details omitted). Stockholders’ equity: Capital stock: 7% cumulative preferred stock, $100 par value……………. $15,000,000 Common stock, $5 par value, 5,000,000 shares Authorized, 4,000,000 shares issued and outstanding…… 20,000,000 Additional paid in capital: Common stock……………………………………………………………… 44,000,000 Retained earnings………………………………………………………… 64,450,000 Total stockholders’ equity…………………………………………… $143,450,000 From this information, I must compute the answers to the following question. What is the among of legal capital and the amount of total paid-in capital? What is the book value per share of common stock, assuming no dividends in arrears? Is tit possible to determine the fair market value per share of common stock from the stockholders’ equity section? Please could you explain
The year end balance sheet of CP, In., include the following stockholders’ equity section (with certain details omitted). Stockholders’ equity: Capital stock: 7% cumulative preferred stock, $100 par value……………. $15,000,000 Common stock, $5 par value, 5,000,000 shares Authorized, 4,000,000 shares issued and outstanding…… 20,000,000 Additional paid in capital: Common stock……………………………………………………………… 44,000,000 Retained earnings………………………………………………………… 64,450,000 Total stockholders’ equity…………………………………………… $143,450,000 From this information, I must compute the answers to the following question. How many shares of preferred have been issued? What is the total amount of the annual dividends to which preferred stockholders are entitled? What was the average issuance price per share common stock?
The following information is taken from the balance sheetand related disclosures of Maxwell, Inc.:Total paid-in capital . . . . . . . . . . . . . . . . . $5,400,000Outstanding shares:Common stock, $5 par value . . . . . . . . 100,000 shares6% preferred stock, $100 par value . . . 10,000 sharesPreferred dividends in arrears . . . . . . . . . 2 yearsTotal stockholders’ equity . . . . . . . . . . . . . $4,700,000 Which of the following statements is (are) true? (For this ques-tion, more than one answer may be correct.) a. The preferred dividends in arrears amount to $120,000and should appear as a liability in the corporate balancesheet.b. The book value per share of common stock is $35.c. The stockholders’ equity section of the balance sheetshould indicate a deficit (negative amount in retainedearnings) of $700,000.d. The company has paid no dividend on its common stockduring the past two years.
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On October 10, the stockholders’ equity section of Sherman Systems appears as follows. Common stock—$10 par value, 72,000 shares authorized, issued, and outstanding . . . . . . $ 720,000 Paid-in capital in excess of par value, common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216,000 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 864,000 Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,800,000 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,000 shares of its own common stock at $25 per share on October 11. b. Sold 1,000 treasury shares on November 1 for $31 cash per share. c. Sold all remaining treasury shares on November 25 for $20 cash per share. 2. Prepare the stockholders’ equity section after the October 11 treasury stock…
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