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  • Johnstone Inc Began Operations in January 2011 and Reported The PDF

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    Johnstone Inc. began operations in January 2011. It reported net losses of $260,000 and $40,000 in 2011 and 2012, respectively, and net income of $700,000 in 2013. As of December 31, 2013, Johnstone had $500,000 in cumulative preferred stock and $750,000 in common stock. It has never paid dividends and state law only permits dividends from retained earnings.

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    Johnstone Inc. began operations in January 2011. It reported net losses of $260,000 and $40,000 in 2011 and 2012, respectively, and net income of $700,000 in 2013. As of December 31, 2013, Johnstone had $500,000 in cumulative preferred stock and $750,000 in common stock. It has never paid dividends and state law only permits dividends from retained earnings.

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    28 views1 page

    Johnstone Inc Began Operations in January 2011 and Reported The PDF

    Uploaded by

    Anbu jaromia
    Johnstone Inc. began operations in January 2011. It reported net losses of $260,000 and $40,000 in 2011 and 2012, respectively, and net income of $700,000 in 2013. As of December 31, 2013, Johnstone had $500,000 in cumulative preferred stock and $750,000 in common stock. It has never paid dividends and state law only permits dividends from retained earnings.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Johnstone Inc began operations in January 2011 and

    reported the
    Johnstone Inc. began operations in January 2011 and reported the following results for each of
    its 3 years of operations.2011 $260,000 net loss 2012 $40,000 net loss 2013 $700,000 net
    incomeAt December 31, 2013, Johnstone Inc. capital accounts were as follows.6% cumulative
    preferred stock, par value $100; authorized, issued,and outstanding 5,000 shares
    ....................$500,000Common stock, par value $1.00; authorized 1,000,000 shares;issued and
    outstanding 750,000 shares .................$750,000Johnstone Inc. has never paid a cash or stock
    dividend. There has been no change in the capital accounts since Johnstone began operations.
    The state law permits dividends only from retained earnings.Instructions(a) Compute the book
    value of the common stock at December 31, 2013.(b) Compute the book value of the common
    stock at December 31, 2013, assuming that the preferred stock has a liquidating value of $106
    per share.View Solution:
    Johnstone Inc began operations in January 2011 and reported the
    SOLUTION-- http://accountinginn.online/downloads/johnstone-inc-began-operations-in-
    january-2011-and-reported-the/

    For Solutions Visit accountinginn.online


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