Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Donnie Hilfiger has two classes of stock authorized $1 par preferred and $0 01 par value c...

Donnie Hilfiger has two classes of stock authorized $1 par preferred and $0 01 par value common As of the beginning of 2015 490 shares of preferred stock and 5900 shares of common stock have been

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2015, 490 shares of preferred stock and 5,900 shares of common stock have been issued. The following transactions affect stockholdersAc€?c equity during 2015:

  

March 1    Issues 3,000 shares of common stock for $61 per share.
May 15    Repurchases 590 shares of treasury stock for $54 per share.
July 10    Reissues 390 shares of treasury stock purchased on May 15 for $59 per share.
October 15    Issues 390 shares of preferred stock for $64 per share.
December 1   

Declares a cash dividend on both common and preferred stock of $2.40 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.)

December 31    Pays the cash dividends declared on December 1.

   

Donnie Hilfiger has the following beginning balances in its stockholdersAc€?c equity accounts on January 1, 2015: Preferred Stock, $490; Common Stock, $59; Additional Paid-in Capital, $85,500; and Retained Earnings, $34,300. Net income for the year ended December 31, 2015, is $14,600.

Required:
1.

Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.

Select whether each of these transactions would increase (+), decrease (?), on total assets, total liabilities, and total stockholdersAc€?c equity by completing the following table. (If none of the categories apply for a particular item, leave the cell blank.)

May 14 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions