Question

Project 3: Stockholders' Equity (10 points) Required: Answer the questions on the following page in this booklet and turn entire booklet at the beginning of class on the date specified by your instructor Shown below is the stockholders' equity section of Holiday Travels balance sheet at December 31, 2019: Common stock, $2 par value, 5,000,000 shares authorized 390,000 shares issued and outstanding Additional paid-in capital Retained earnings Total stockholders' equity $780,000 1,060,000 2,330,000 $ 4.170.000 During 2020, the following events occurred: Holiday Travels was authorized to sell 120,000 shares of $100 par, 8% preferred stock ► Holiday sold 18,500 shares of the preferred stock at its par value A cash dividend of $290,000 was declared and paid > Holiday Travels declared and issued a 10% stock dividend on the common stock when the market value of the stock was $17 per share ► Net income for the year was $1,350,000

Answer 1

Capital stock, as of December 31, 2020 #common shares authorized is 5000000 Sherls. common shares issued and outstanding09) 429000. shares [390000 + 39000] to aprusog borista 39.000 - 10% (390000) costo, MD Preferred shares issued and as 18500 shares Cocket out standing - 0909pS - GOOISES Amount of cash divielende $142000. to common stock holders ublad dota botol (290000 - Preferred dividend) (240000 – 84.(1850000) @DJI XOOOPCJ) Amount of cash Dividend OGUESES $ 148000 ) E to preferred stock Potal debit to stock at dividend account $663000, ( 39000 x17)

Additional paid in Capital at December 31, 2020 to $1645000. (1060000 + (34000 X 17-2)] Retained earnings at $2330000 Jan 1st, 2020.ooops) on Dec 31, 2020 $2727000 [2330000 - 290000 – 663000 + 1350000) tawib den ha trwania -OOOS!! - greblad suota nommes of I Total stockholder's equity at Dec 31, 2020 $ 7080000 [(u29000x214 1645000 in me to become + (18500 X 100)+2727000) Pljak bergery tota at Hidab luat Ogos 20