Bonds Payable Buildings Cash Common Stock Common Stock Dividend Distributable De
ID: 2526370 • Letter: B
Question
Bonds PayableBuildings
Cash
Common Stock
Common Stock Dividend Distributable
Debt Investments
Dividends Payable
Discount on Bonds Payable
Equipment
Equity
Equity Investments
Income Summary
Land
Legal Fees Expense
No Entry
Organization Expense
Paid-in Capital from Treasury Stock
Paid-in Capital in Excess of Par - Common Stock
Paid-in Capital in Excess of Par - Preferred Stock
Paid-in Capital in Excess of Stated Value - Common Stock
Preferred Stock
Property Dividends Payable
Retained Earnings
Treasury Stock
Unamortized Bond Issue Costs
Unrealized Holding Gain or Loss - Income Problem 15-9 The following is a summary of all relevant transactions of Waterway Corporation since it was organized in 2017. In 2017, 15,500 shares were authorized and 6,300 shares of common stock ($60 par value) were issued at a price of $67. In 2018, 1,000 shares were issued as a stock dividend when the stock was selling for $70. 330 shares of common stock were bought in 2019 at a cost of $74 per share. These 330 shares are still in the company treasury, In 2018, 10,300 preferred shares were authorized and the company issued 4,900 of them ($100 par value) at $111. Some of the preferred stock was reacquired by the company and later reissued for $4,580 more than it cost the company. The corporation has earned a total of $625,600 in net income after income taxes and paid out a total of $291,800 in cash dividends since incorporation Prepare the stockholders' equity section of the balance sheet in proper form for Waterway Corporation as of December 31, 2019. Account for treasury stock using the cost method (Enter account name only. Do not provide descriptive information.) WATERWAY CORPORATION Stockholders Equity
Explanation / Answer
no of units
per unit value
total
common stock issued
6300
60
378000
stock issued as dividend
1000
60
60000
total common stock issued
438000
additional paid in capital- common stock
common stock Issued
6300
7
44100
stock issued as dividend
1000
10
10000
additional paid in capital- common stock
54100
treasury stock
330
74
24420
preferred stock issued
preferred stock issued
4900
100
490000
additional paid in capital - preferred stock
4900
11
53900
additional paid in capital-treasury stock preferred stock
4580
net income
625600
dividend paid as cash
291800
dividend paid as common stock
60000
retained earnings
273800
Statement of shareholders equity
common stock
438000
preferred stock
490000
less treasury stock-common stock
24420
additional paid in capital-common stock
54100
additional paid in capital - preferred stock
53900
additional paid in capital-treasury stock preferred stock
4580
retained earnings
273800
total shareholders equity
1289960
no of units
per unit value
total
common stock issued
6300
60
378000
stock issued as dividend
1000
60
60000
total common stock issued
438000
additional paid in capital- common stock
common stock Issued
6300
7
44100
stock issued as dividend
1000
10
10000
additional paid in capital- common stock
54100
treasury stock
330
74
24420
preferred stock issued
preferred stock issued
4900
100
490000
additional paid in capital - preferred stock
4900
11
53900
additional paid in capital-treasury stock preferred stock
4580
net income
625600
dividend paid as cash
291800
dividend paid as common stock
60000
retained earnings
273800
Statement of shareholders equity
common stock
438000
preferred stock
490000
less treasury stock-common stock
24420
additional paid in capital-common stock
54100
additional paid in capital - preferred stock
53900
additional paid in capital-treasury stock preferred stock
4580
retained earnings
273800
total shareholders equity
1289960