Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 4-3 stockholders equity in transworld inc

Exercise 4-3 Stockholders equity in TransWorld Inc. on December 31, 2010, is shown below: ...

50.1K

Verified Solution

Question

Accounting

Exercise 4-3 Stockholders equity in TransWorld Inc. on December 31, 2010, is shown below:

Common stock: 60,000 authorized shares, par value of $15, 25,000 shares issued and outstanding $375,000
Paid-in capital in excess of par value, common stock 90,000
Retained earnings 430,000
Total Equity 895,000

Stockholder equity accounts were affected by the following transactions in 2011: Jan 1 TransWorld purchased 2,000 treasury shares at $24/share. Jan 7 Declared a $3/share dividend, payable on Feb 15 to the Feb 28 stockholders of record. Feb 15 Paid the dividend (Jan 7 declaration). May 7 Sold 800 of treasury shares for cash at $27/share. Aug 15 Sold 1200 of treasury shares for cash at $21/share. Sep 20 Declared a $3/share dividend, payable on Oct 15 to the Sep 30 stockholders of record. Oct 15 Paid the dividend (Sep 20 declaration). Dec 31 Closed the credit balance of $188,000 (from net income) in the Retained Earnings Income Summary account. 1. Use the information provided to prepare the following: a. Journal entries for the 2011 transactions. b. December 31, 2011, retained earnings statement. c. For distinguished performance, prepare the investors equity section of TransWorlds December 31, 2011, balance sheet.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Bensen Company began operations when it acquired $26,700 cash from the issue of common stock on...

Accounting
Q

Earlier, we discussed “The List”---the list of services and products that are provided to all people...

General Management
Q

In the circuit shown the switch S is closed at t 0 Then the current...

Physics
Q

In January, Blossom Company requisitions raw materials for production as follows: Job 1$720,...

Accounting
Q

Q10/An favorable production-volume variance occurs when: Group of...

Accounting
Q

Subject is Law . 1. Jason Bovell, doing business as Bovell &...

Accounting
Q

collins company is preparing its master budget for april. use the given estimates to determine...

Accounting
Q

Task 2: Wonder Worlds produces two types of watches: digital and analog. The company manufactures...

Accounting
Q

Thermal Rising. Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has...

Accounting
Q

For the year ended December 31, Lopez Company implements an employee bonus program based on...

Accounting
Q

break even? The variable cost per doeen of corventond eoas is 1 (Hound to the...

Accounting
Q

eBook Problem Walk-Through Warrants \\( \\$ \\)

Finance