Question

Comprehensive Oakwood Inc. is a public enterprise whose shares are traded in the over-the-counter market. At December 31, 2015, Oakwood had 6,000,000 authorized shares of $10 par value common stock, of which 2,000,000 shares were issued and outstanding. The shareholders' equity accounts at December 31, 2015, had the following balances: Common stock Additional paid-in capital on common stock Retained earnings $20,000,000 7,500,000 6,470,000 Transactions during 2016 and other information relating to the shareholders' equity accounts were as follows: 1. On January 5, 2016, Oakwood issued at $54 per share, 100,000 shares of $50 par value, 9%, cumulative convertible preferred stock. Each share of preferred stock is convertible, at the option of the holder, into 2 shares of common stock. Oakwood had 600,000 authorized shares of preferred stock. 2. On February 2, 2016, Oakwood reacquired 20,000 shares of its common stock for $16 per . On April 27, 2016, Oakwood sold 500,000 shares (previously unissued) of $10 par value 4. On June 18, 2016, Oakwood declared a cash dividend of $1 per share of common stock, 5. On November 9, 2016, Oakwood sold 10,000 shares of treasury stock for $21 per share. share. Oakwood uses the cost method to account for treasury stock. common stock to the public at $17 per share. payable on July 13, 2016, to shareholders of record on July 2, 2016.

Answer 1

Answer 2