Question & Answer: Identifying and Analyzing Financial Statement Effecets of Stock Transactions The stockholders equity of Verssch…..

Hi, I have done with this questions except B) 1- Paid-in capital in excess of par value-common stock Answer

2- Paid-in capital from treasury stock

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3- Total paid-in capital

4- Total Stockholders’ Equity

Would you please help me with this question because i am really struggling. thanks Identifying and Analyzing Financial Statement Effecets of Stock Transactions The stockholders equity of Versschia Company at December 31. 2016. follows Common stock, $5 par value, 500 000 shares authonized 350 000 shares issued and outstanding Paid-in capital in excess of par value Retained eamings 800,000 634 000 During 2017, the following transactions occurred Jan. S Issued 10,000 shares of common stock for $13 cash per share Jan. 18 Repurchased 4.000 shares of common stock at 816 cash per share Mar, 12 Sold one-fourth of the treasury shares acquired January 18 for $19 cash per share July 17 Sold 500 shares of treasury stock for S14 cash per share Oct. 1 Issued 5,000 shares of 8%, $25 par value preferred stock for $36 cash per share This is the first issuance of preferred shares from the 50,000 authorized preferred shares (a) Use the financial statement effects template to indicate the effects of each transaction e Use begative signs with answers, when Balance Sheet Contributed Earned ansaction sshAnceasl - Liabilikien Assets Capital Capital Answer AnswerAnswerAswerAnswe Answer AnswerAnswerAnswnswer Jan 18 Answer AnowerAnswerAnswer Answer Mar 12 Aniwer AuscAnawerw 1115Question & Answer: Identifying and Analyzing Financial Statement Effecets of Stock Transactions The stockholders equity of Verssch..... 1Question & Answer: Identifying and Analyzing Financial Statement Effecets of Stock Transactions The stockholders equity of Verssch..... 2Question & Answer: Identifying and Analyzing Financial Statement Effecets of Stock Transactions The stockholders equity of Verssch..... 3

Identifying and Analyzing Financial Statement Effecets of Stock Transactions The stockholders equity of Versschia Company at December 31. 2016. follows Common stock, $5 par value, 500 000 shares authonized 350 000 shares issued and outstanding Paid-in capital in excess of par value Retained eamings 800,000 634 000 During 2017, the following transactions occurred Jan. S Issued 10,000 shares of common stock for $13 cash per share Jan. 18 Repurchased 4.000 shares of common stock at 816 cash per share Mar, 12 Sold one-fourth of the treasury shares acquired January 18 for $19 cash per share July 17 Sold 500 shares of treasury stock for S14 cash per share Oct. 1 Issued 5,000 shares of 8%, $25 par value preferred stock for $36 cash per share This is the first issuance of preferred shares from the 50,000 authorized preferred shares (a) Use the financial statement effects template to indicate the effects of each transaction e Use begative signs with answers, when Balance Sheet Contributed Earned ansaction sshAnceasl – Liabilikien Assets Capital Capital Answer AnswerAnswerAswerAnswe Answer AnswerAnswerAnswnswer Jan 18 Answer AnowerAnswerAnswer Answer Mar 12 Aniwer AuscAnawerw 1115

Expert Answer

 

Answer:

Income statement
Trans
action
Cash
Assets+
Non-Cash
Assets =
Leablity+ Contrib.
capital +
Earned
Capital
Revnue- Expanses Net
income
Jan.5 130,000
cash
50,000 common
stock
80,000
Additional Paid in capital
Jan.18 -64,000
cash
,-64,000
Treasury
stock
Mar.12 19,000
cash
16,000 Treasury
stock
3,000
Additional Paid in capital
July.17 7,000
cash
8,000 Treasury
stock
-1,000
Additional Paid in capital
Oct.1 180,000
cash
125,000 Preferred
stock
55,000
Additional Paid in capital
Notes:

1

Cash increases by the proceeds from the stock sale (10,000 shares × $13 = $130,000). Common Stock increases by the par value (10,000 shares × $5) and Additional Paid-In Capital increases by the remainder ($80,000).

2

Cash decreases by the cost of the Treasury Stock (4,000 shares × $16 = $64,000). The Treasury Stock account increases by the same amount. Because Treasury Stock is a contra-equity account, the share repurchase reduces stockholders’ equity (paid-in capital)

3

Cash increases by the proceeds from the sale of the Treasury Stock (1,000 shares × $19 = $19,000). The Treasury Stock account is reduced by the original cost of the shares (1,000 × $16 = $16,000) and Additional Paid-In Capital increases by the remainder ($3,000).

4

Cash is increased by the proceeds from the sale of the Treasury Stock (500 shares × $14 = $700). Treasury Stock is reduced by its original cost (500 shares × $16 = $8000) and Additional Paid-In Capital is reduced by the difference.

5

Cash increases by the proceeds from the sale of the Preferred Stock (5,000 shares × $36 per share = $180,000). Preferred Stock increases by its par value (5,000 shares × $25 = $125,000) and Additional Paid-in Capital increases by the remainder ($55,000)

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2

VERRECCHIA COMPANY
Stockholders’ Equity
Amount $ Amount $
Paid-in capital
8% Preferred stock, $25 par value,
50,000 shares authorized, 5,000
shares issued and outstanding            125,000
Common stock, $5 par value, 500,000
shares authorized; 360,000 shares issued        1,800,000    1,925,000
Additional paid-in capital
Paid-in capital in excess of par
value—preferred stock
             55,000
Paid-in capital in excess of par
value—Common stock
           880,000
Paid-in capital in excess of par
value—Tresury stock
                2,000       937,000
Retained earnings (634000+76900)            710,900
Less: Treasury stock (2,500 shares) at cost            (40,000)
      670,900
Total Stockholders’ Equity    3,532,900

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