Problem 15-12 Retained Earnings As of June 30, 2017, Shamrock\'s retained earnin
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Problem 15-12 Retained Earnings As of June 30, 2017, Shamrock's retained earnings account had a balance of $674,000. For the fiscal year ending June 30, 2018, Sharock reported net income of $39.400 Your answer is partially correct. Try again. Shamrock Company was formed on July 1, 2015. It was authorized to issue 289,000 shares of $10 par value common stock and 95,700 shares of 7% S25 par value, cumulative and nonparticipating preferred stock. Shamrock Company has a July 1-June 30 fiscal year. Prepare the stockholders' equity section of the balance sheet, for Shamrock Company as of June 30, 2018, as it should appear in its annual report to the shareholders. Enter account name only do not provide descriptive information.) The following information relates to the stockholders' equity accounts of Shamrock Company. Equity Common Stock Prior to the 2017-2018 fiscal year, Shamrock Company had 105,600 shares of outstanding common stock issued as follows. lune 30 2018 Capital Stock Prefeined Stoc Common Slock 1. 82,700 shares were issued for cash on July 1, 2015, at $31 per share. 2. On July 24, 2015, 5,000 shares were exchanged for a plot of land which cost the seller $67,200 in 2009 and had an estimated fair value of $227.700 on July 24, 2015. 3. 17,900 shares were issued on March 1, 2016, for $39 per share. During the 2017-2018 fiscal year, the following transactions regarding common stock took Totd Coptol Stock Adáional Paid-n Capital Padin Copitd PadinCapid Treasury Stock place. November 30, 2017 December 15, 2017 Shamrock purchased 2,000 shares of its own stock on the open market at $39 per share. Shamrock uses the cost method for treasury stock. Shamrock declared a 5% stock dividend for stockholders of record on January 15, 2018, to be issued on January 31, 2018. Shamrock was having a liquidity problem and could not afford a cash stock was selling at $54 per share on December 15, 2017 Shamrock sold 450 shares of its own common stock that it had purchased on November 30, 2017, for $21,000. at the time. Shamrock's common June 20, 2018 Preferred Stock Shamrock issued 40,600 shares of preferred stock at $40 per share on July 1, 2016 Tota Paid-n Captal and Retained Eanings Cash Dividends Shamrock has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2018, are shown below Retained Eani Stockhclders' Equty Declaration Date Common Preferred Less 12/15 16 615/17 12/15/17 Stock $0.30 per share 50.30 per share $1 per share $1 per share $1 per share Treasury Stock Total Stockholdeis'Equity No cash dividends were declared during June 2018 due to the company's liquidity problems.Explanation / Answer
Workings: Common stock No.of shares Par value at $ 10 APIC Total July 1,2015 82700 827000 1736700 2563700 July 24,2015 5000 50000 177700 227700 Mar 1,2016 17900 179000 519100 698100 TOTAL 105600 1056000 2433500 3489500 Nov.30,2017 -2000 -78000 Treasury stock Shares on record on Jan 15,2018 103600 3411500 Jan 31,2018 5180 51800 227920 279720 Jun 20,2018 450 21000 Treasury stock Preferred stock July 1,2016 40600 1015000 609000 1624000 Retained earnings Jun 30.2017 674000 Add: 2017-2018 Net Income 39400 Less: 6/15/2017 cash dividends Common stock(0.30*105600) -31680 Preferred(40600* $ 1) -40600 12/15/2017 cash dividends Preferred(40600*$1) -40600 Common stock(stock dividend) -279720 Ending balance 320800 SHAMROCK COMPANY Stockholders' Equity June 30,2018 Capital stock Preferred stock 1015000 Common stock 1107800 Total Capital stock 2122800 Additional Paid-in Capital APIC-Preferred stock 609000 APIC-Common stock 2661420 APIC-Treasury stock(21000-(450*39)) 3450 Total Additional Paid-in Capital 3273870 Retained Earnings 320800 Less: Treasury stock(2000-450)*39 -60450 Total stockholders'equity 5657020