Question

Bonita Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, $5 par (98,500 shares authorized, 19,700 shares issued) 98,500 Additional paid-in capital 135,000 Retained earnings 479,000 Total $912,500 During 2020, Bonita took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019 2. Purchased 1,600 shares of its own outstanding common stock for $43 per share. Bonita uses the cost method. 3. Reissued 800 treasury shares for land valued at $36,200. 4. Issued 530 shares of preferred stock at $105 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $47 per share. 6. Issued the stock dividend. 7. Declared the annual 2020 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021.

Answer 1

stockholder's Equity Stockholder's Equity consists of part in a cqpity) in the form of pretened stuchy communi stucky excess capital in excess of_pax, sale of trequery stoch, retained earnings deducting treasury stock. It is the capital of stockholders that what they have invested in the business of company

pxl 9450 16 Common Stoch ojullend Ojstributyble Alta - To (org.mon stoch. Ale (Being common sbock diukened issued) 94.50 1 Retained Earnings Al Ovi 1668809 To commag stouh olulisend Bryable (20790 sharex (2) __ To Be femei Shock olullenwayable (259o shaves. X60) _ (being 2013_2004) Juuldend declared) 41580 2500 Total 1 Working Notes ② Stock Dividend @ 10% Stock Dividend is issued on the outstanding shares 903 I on issue of stock Dividend av bitgading_Shares_= Opening - Tregsyag stolet fronvy Stock before stock guldent Shaves Perchauer Issuet - (19.700 – 1600 + 800 18900 shares shares Stoch ojullend New Common Stock : 18500 shares X 100% x 47 $88,830 : 18900 shares t 10% of 18900 = 18900 shares of 1890 shares, - 20750 shares hann

Boolba_company _ Stockholder's Equity ºd on December 31, 2020 Preferred 253000 stock, 10% & 100 pax (10000 shares qythorized - 2530 shares issued) Common stock $5 per Gasoo shares authorized (19700 shares - + (9450 + $5 ] shones ie 21590 shores 107950 Additional fail in Capital (135000 + 18ou +2650 + 1980) 218830 6392go Betyined Eganbags (479600 - 88836-66880 + 3/5000) - Treysmy stock (800 shares X 43) 634400) Total stockholder's Egylty [1184670