Problem 11-3A On December 31, 2016, Pharoah Company had 1,395,000 shares of $6 p
ID: 2472311 • Letter: P
Question
Problem 11-3A On December 31, 2016, Pharoah Company had 1,395,000 shares of $6 par common stock issued and outstanding. At December 31, 2016, stockholders' equity had the amounts listed here. Common Stock Additional Paid-in Capital Retained Earnings $8,370,000 1,760,000 1,105,000 Transactions during 2017 and other information related to stockholders' equity accounts were as follows. 1. on January 10, 2017, issued at $109 per share 129,000 shares of $104 par value, 7% cumulative preferred stock. 2. On February 8, 2017, reacquired 18,300 shares of its common stock for $15 per share. 3. On May 9, 2017, declared the yearly cash dividend on preferred stock, payable June 10, 2017, to stockholders of record on May 31, 2017. 4. On June 8, 2017, declared a cash dividend of $1.65 per share on the common stock outstanding, payable on July 10, 2017, to stockholders of record on July 1, 2017 5. Net income for the year was $3,587,000 Prepare the stockholders' equity section of Pharoah balance sheet at December 31, 2017Explanation / Answer
Net Income for the Year $3,587,000.00 Preference dividend paid $913,390.68 Equity Dividend Paid $2,271,555.00 Addition to retained Earning $402,054.32 Common Preference No. of Share 1395000 129000 Face value per share $6.00 $104.00 Reacquired share -18300 No. of Share at end of 2017 1376700 129000 Value $8,260,200.00 $13,416,000.00 Common Stock $8,260,200.00 7% Prefered Stock $13,416,000.00 Additional Paid in Capital $1,760,000.00 Retained Earning $1,507,054.32 Treasury Stock -$207,000.00 Stockholders Equity $24,736,254.32