Acc Final

Reported on stockholders equity of balance sheet

treasury stock, common stock, retained earnings

reasons why a corporation would prefer issue stock instead of bonds

risk of going bankrupt is less

smallest to largest number of shares

outstanding, issued, and authorized

company issues 1,000 shares of $1 par value common stock for $20 per share, which would be credited

additional paid per capital

issues 5,000 shares of 8%, $100 par value preferred stock beginning of 2017, all remaining are common stock. Not able to pay dividends in 2017, plan to pay $100,000 in 2018. Assuming preferred stock is cumulative, how much of 1,000 divided will be paid to preferred stockholders & common stockholders in 2018?

preferred dividends from 2017 (5,000*8%*100)=40,000

preferred dividends for 2018 (5,000×8%8*100)=40,000

remaining dividends to common stockholders (100,000-40,000=60,000-40,000)

total dividends= 100,000

80,000= preferred stockholders & 20,000 in common stock

treasury stock reported as

reduction of total stockholders equity

100,000 outstanding shares of common stock, June 16, 2018 repearchased 20,000 own stock at $30 per share. July 30, 2018 resold 10,000 shares for $28 per share. What net effect did reperchase & resell have on accounting equation

decrease assets & decrease stockholders equity

RE reprsetnes

net income less dividends since the company first began operations

RE balance of $12,000 dec 31, 2018. Avg income $7,500 over 3 years & ending RE of $15,000 at dec 31, 2021. Whats total amount of dividend paid over three years?

12,000+22,500-dividends=15,000

dividends= 19,500