Answer the fllewing, based on the infarmatian given on the preceding page Requir
ID: 2430409 • Letter: A
Question
Answer the fllewing, based on the infarmatian given on the preceding page Required: Answer the questions on the following page in this booklet and turn in the entire booklet at the beginning of class on the date specified by your instructor Capital stock, as of December 31, 201B Shown below is the stockholders equity section of Tiny Tot's stockhalders equity section of the balance sheet at December 31, 2017 of common shares issued and outstanding #ofpreterred shares hsued and ottrárg Common stock, $1 par value, 5,000,000 shares authorized, 690,000 shares issued and outstanding Additional paid-in capital Retained earnings $690,000 1,280,000 2.650.000 Amount of cash dvidend to commen stockholders Amount of cash dividend to preferred stockholders Total debit to Stock Dividends account Total stockholders' equity During 2018, the following events occurred Tiny Tors was authorized to sell 120,000 shares of $100 par, 8% preferred stock Tiny Tot's sold 18,000 shares of the preferred stock at its par value A cash dividend of $270,000 was declared and paid Tiny Tot's declared and issued a 10% stock dividendon the co market value of the stock was $14 per share Addieional paid-in capital, at December 31, 2038 Retained earnings, at January 1, 201 Retained earnings, at December 31, 2018 Total Stockholders Equity, at December 31, 2018 - n rtock when the Net income for the year was $1,650,000Explanation / Answer
Capital stock Opening addition Total CS - authorised 5000000 common stock -issued and outstanding 690000 69000*1=69000 690000 preferred shares - issued and outstanding 1800000 1800000 Amount of cash dividend to CS 270000 Amount of cash dividend to PS 0 (not declared) Total debit to Stock Dividends account 270000 Additional paid in capital, at Dec 31 2018 1280000 69000*13=897000 1280000 Retained earnings at Jan 1 2018 2650000 Retained earnings at Dec 31, 2018 2650000-270000-(69000*14)+1650000=3064000 3064000 Total Stockholder's equity at Dec 31 2018 6834000