The following transactions occurred for Villegas Company. 1. Villegas Company was formed on July 1, 2022 by issuing 10,000 shares of its $10 par value common stock for $30 per share. 100,000 shares were authorized by the charter. The company has a fiscal year ending June 30. 2. The company reported a net income of $40,000 during the year ended June 30, 2023. There were no other transactions affecting stockholders' equity for the year ending June 30, 2023. 3. On July 31, 2023, the company purchased on the open market 1,000 of its own shares at a cost of $28 per share. Treasury shares are accounted for under the cost method. 4. A cash dividend of 50 cents per common share was declared on Oct. 15, 2023, and paid on Nov. 15, 2023 to stockholders of record on Nov. 1, 2023. 5. On June 10, 2024, 500 new shares of company common stock were sold at a price of $28 per share. 6. The next day, on June 11, 2024, 600 shares of treasury stock were sold at a price of $29 per share. 7. Net earnings for the two years ended June 30, 2024 totaled $14,000. Instructions: Prepare the stockholders' equity section of the balance sheet for Villegas Company at June 30, 2024 in good form.
The following transactions occurred for Villegas Company. 1. Villegas Company was formed on July 1, 2022 by issuing 10,000 shares of its $10 par value common stock for $30 per share. 100,000 shares were authorized by the charter. The company has a fiscal year ending June 30. 2. The company reported a net income of $40,000 during the year ended June 30, 2023. There were no other transactions affecting stockholders' equity for the year ending June 30, 2023. 3. On July 31, 2023, the company purchased on the open market 1,000 of its own shares at a cost of $28 per share. Treasury shares are accounted for under the cost method. 4. A cash dividend of 50 cents per common share was declared on Oct. 15, 2023, and paid on Nov. 15, 2023 to stockholders of record on Nov. 1, 2023. 5. On June 10, 2024, 500 new shares of company common stock were sold at a price of $28 per share. 6. The next day, on June 11, 2024, 600 shares of treasury stock were sold at a price of $29 per share. 7. Net earnings for the two years ended June 30, 2024 totaled $14,000. Instructions: Prepare the stockholders' equity section of the balance sheet for Villegas Company at June 30, 2024 in good form.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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