Reference no: EM13937681
Analyze and record stock transactions and prepare equity section of balance sheet.
The following information pertains to the equity accounts of Fragrant Soap Company Inc.
1. Contributed capital on January 1, 2007, consisted of 70,000 issued and outstanding shares of common stock with par value of $0.50; additional paid-in capital in excess of par of $350,000; and retained earnings of $500,000.
2. During the first quarter of 2007, Fragrant Soap Company issued an additional 10,000 shares of common stock for $6 per share.
3. On June 15, the company declared a 2-for-1 stock split.
4. On September 30, the company distributed a 10% stock dividend. The market price of the stock on that date was $5 per share.
5. On October 1, the company declared a dividend of $0.25 per share to be paid on October 31.
6. Near the end of the year, the company's CEO decided the company should buy 1,000 shares of its own stock. At that time, the stock was trading for $6 per share in the stock market.
7. Net income for 2007 was $49,500.
Required
a. Show how each of the transactions would affect the accounting equation.
b. Prepare the shareholders' equity section of the balance sheet at December 31, 2007.
|
Why was freuds work so influential
: Write a 1,050- to 1,400-word paper discussing Freud, Erikson, and two other psychoanalytic or neo-psychoanalytic theorists. Answer the following questions in your paper: Why was Freud's work so influential? How did the analysts that followed Freud di..
|
|
Why did walmart fail to achieve similar success in europe
: What did Walmart do to enable the company to achieve success in Canada and Latin America? Why did Walmart fail to achieve similar success in Europe?
|
|
Number of high-profile retail businesses
: In past few years, a number of high-profile retail businesses (e.g., Target, Home Depot) have been subject to personal information hacking. Explain the application of e-commerce risk on these companies and how they can manage the risk. What level of ..
|
|
Dividends is expected to continue into foreseeable future
: Wombat+Wombat is a well-established creative design agency located on the East Coast. It has experienced very stable growth in both earnings and dividends over the past 10 years, averaging 7% per annum. If this growth in dividends is expected to cont..
|
|
Compute the shareholders equity section of the balance sheet
: Show how each of the transactions would affect the accounting equation. Prepare the shareholders' equity section of the balance sheet at December 31, 2007.
|
|
Differences between achievement and intelligence
: What are the similarities and differences between achievement and intelligence? How are the two assessed? Which assessment method do you prefer? Why
|
|
Competing design agency as part of growth strategy
: Wombat+Wombat is a well-established creative design agency located on the East Coast. It has experienced very stable growth in both earnings and dividends over the past 10 years, averaging 7% per annum. Wombat+Wombat is considering the acquisition of..
|
|
Write a c++ program to read from a file and sort it
: Using this information the program should request a user entered account number and display the corresponding name and account balance.
|
|
Bowlby theory of attachment and impairment of attachment
: First become familiar with Bowlby's theory of attachment and impairment of attachment. Then share what you think your parental attachment was when you were young
|