60.1K

Verified Solution

Link Copied!

Holiday Corporation had the following stockholders' equity amounts on their balance sheet on December 31, 2020 (the end of their 8th year of business): Common Stock, $10 par. 1,000,000 shares authorized, Issued, shares outstanding Paid in Capital in Excess of Par - Common Paid in Capital from Treasury Stock Accumulated Other Comprehensive Income Retained Earnings Total Stockholders' Equity shares $2.300.000 8,400,000 10,000 160.000 5.321.000 $16,191.000 During 2021, Holiday completed the following transactions: March 1 Sold 24,000 shares of common stock for $52 per share in cash. June 1 Purchased 12,000 shares of our own company stock for cash when the price dropped to $47 per share. Holiday plans to resell the shares when the price goes back up November 1 Resold 3,000 of the shares from June 1 at $53 per share December 1 Declared a $0.50 per share cash dividend December 31 Reported $600,000 of net income Answer the following questions. Please show and label your work. a. How many shares should be in the blanks beside Common Stock on December 31, 2020? b. How many shares should be in the blanks beside Common Stock on December 31, 2021? c. Calculate Earnings Per Share in 2021. Show your calculations d. How can Holiday have Paid in Capital from Treasury Stock on December 31, 2020 without having any Treasury Stock? e. In which section(s) of the cash flow statement should the June 1 transaction be reported and for what amount(s)? f. What is the balance of Retained Earnings on December 31, 2021? g. Give two possible reasons Holiday might have "Accumulated Other Comprehensive Income" on their balance sheet

Answer & Explanation Solved by verified expert

See Answer