Question

On December 31, 2021, Sheridan Company had 1,310,000 shares of $7 par common stock issued and outstanding. At December 31, 2021, stockholders' equity had the amounts listed here. Common Stock Additional Paid-in Capital Retained Earnings $9,170,000 1,860,000 1,120,000 Transactions during 2022 and other information related to stockholders' equity accounts were as follows. 1. On January 10, issued at $109 per share 114,000 shares of $100 par value, 9% cumulative preferred stock. 2. On February 8, reacquired 16,900 shares of its common stock for $11 per share. 3. On May 9, declared the yearly cash dividend on preferred stock, payable June 10, to stockholders of record on May 31. 4. On June 8, declared a cash dividend of $1.20 per share on the common stock outstanding, payable on July 10, to stockholders of record on July 1. 5. Net income for 2022 was $3,687,000.

Answer 1

9170000/7-16900 $ 1,26,93,100 Date Account Title Jan-10 Cash Preferred Stock Paid in excess of Capital - Preferred Stock Feb-08 Treasury stock Cash May-09 Cash dividend Dividend Payable Jun-08 Cash dividend Dividend Payable Dec-31 Income summary Retained Earnings Dec-31 Retained Earnings Cash dividend Partial Balance Sheet Debit Credit Stockholder's Equity $ 1,24,26,000 114000*109 Paid in capital: $1,14,00,000 114000*100 Capital Stock $ 10,26,000 114000*9 Common stock $ 12,93,100 $ 1,85,900 16900*11 Preferred Stock $ 1,14,00.000 $ 1,85,900 Total Capital Stock $ 10,26,000 114000*100*9% Additional paid in capital: $ 10,26,000 Paid in capital: $ 15,51,720 |(9170000/7-16900)*1.2 Paid in excess of Capital - Common Stock $ 18,60,000 $ 15,51,720 Paid in excess of Capital - Preferred Stock $ 10.26,000 $ 36,87,000 Total Paid in excess of capital | $ 36,87,000 Retained Earnings $ 25,77,720 Total Paid in capital and retained earnings $ 25,77,720 Less: Treasury stock Total Stockholder's Equity $ $ 28.86.000 22.29,280 1120000+3687000-1026000-1551720 51,15,280 -1,85,900 49,29,380 $