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  • The Following Shareholders Equity Accounts Are Reported by Talty Inc

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    Bube Kachevska
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    Talty Inc. reported shareholders' equity accounts on January 1 including common shares of $4,000,000, preferred shares of $600,000, and contributed surplus and retained earnings of $1,960,000. During the year, Talty conducted several transactions involving issuing and reacquiring common and preferred shares, splitting common shares, and declaring a common stock dividend.

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    The Following Shareholders Equity Accounts Are Reported by Talty Inc

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    Talty Inc. reported shareholders' equity accounts on January 1 including common shares of $4,000,000, preferred shares of $600,000, and contributed surplus and retained earnings of $1,960,000. During the year, Talty conducted several transactions involving issuing and reacquiring common and preferred shares, splitting common shares, and declaring a common stock dividend.

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    36 views2 pages

    The Following Shareholders Equity Accounts Are Reported by Talty Inc

    Uploaded by

    Bube Kachevska
    Talty Inc. reported shareholders' equity accounts on January 1 including common shares of $4,000,000, preferred shares of $600,000, and contributed surplus and retained earnings of $1,960,000. During the year, Talty conducted several transactions involving issuing and reacquiring common and preferred shares, splitting common shares, and declaring a common stock dividend.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    The following shareholders equity accounts are reported

    by Talty Inc #8663

    The following shareholders' equity accounts are reported by Talty Inc. on January 1:

    Common shares (unlimited authorized, 500,000 issued).....................................$4,000,000

    Preferred shares ($9 noncumulative, convertible, 100,000 authorized, 4,000


    issued).......600,000

    Contributed surplus-reacquisition of common shares.............................................2,000

    Retained earning....................................................................................1,958,000

    The following selected transactions occurred during the year:

    Jan. 17 Issued 50,000 common shares at $10 per share.

    Feb. 27 Reacquired 20,000 common shares at $12 per share.

    Apr. 14 Split the common shares 2 for 1 when the common shares were trading at $20 per
    share.

    June 25 Reacquired 500 preferred shares at $145 per share.

    Aug. 16 Reacquired 100,000 common shares for $11 per share.

    Oct. 17 Declared a 5% common stock dividend distributable on December 3 to shareholders of


    record on November 14. On October 17, the fair value of the common shares was $10.

    Dec. 3 Distributed the stock dividend declared on October 17. On December 3, the fair value of
    the common shares was $12.50.

    Instructions

    (a) Prepare journal entries for the transactions.

    (b) Show how each class of shares will be presented in the shareholders' equity section of the
    balance sheet at December 31.

    TAKING IT FURTHER

    Provide possible reasons why Talty split the common shares and issued a stock dividend

    1/2
    The following shareholders equity accounts are reported by Talty Inc

    ANSWER
    http://paperinstant.com/downloads/the-following-shareholders-equity-accounts-are-reported-by-
    talty-inc/

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