Question

Use the following to answer questions 6-12 JR, Inc., has two classes of stock authorized: $100.00 par preferred and $0.10 par value common. As of the beginning of 20XC, 10,000 shares of preferred stock and 500,000 shares of common stock have been issued. Record the following transactions to complete the Statement of Stockholders' Equity: Effect on Stockholders' Equity Issue 3,000 additional shares of preferred stock for $101.00 per share Issue 200,000 additional shares of common stock for $18.50 per share 1-Mar 1-Apr Declare a cash dividend on both common and preferred stock of $0.60 per share to 1-Jun all stockholders of record on June 15. Pay the cash dividend declared on June 1 30-Jun Repurchase 20,000 shares of common treasury stock for $20.00 per share Reissue 15,000 shares of treasury stock purchased on August 1 for $21.45 per share Net income for the year was $582,600 1-Aug 1-Oct 31-Dec The beginning balances are shown below. Complete the Statement of Stockholders' Equity using the above information: Total Stockholders Additional Retained Treasury Paid-in Preferred Common Stock Capital Earnings $987,500 Stock Equity $6,787,500 Stock Beginning balance 20XC Issuance of stock $4,750,000 $0 $1,000,000 $50,000 Net income for the year Less: Dividends Purchase of Treasury Sale of Treasury Ending balance 20XC