Fall 2009 ACCO 320 Assignment #2

Fall 2009 ACCO 320 Assignment #2 - Feb. 5, 2007 Issued...

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Page 1 of 1 Fall 2009 ACCO 320 Assignment #2 Section _______ Due Date: Tuesday, October 13, 2009 Student #1: Name _________________________ ID______________ Student #2: Name _________________________ ID______________ Student #3: Name _________________________ ID______________ Student #4: Name _________________________ ID______________ SHAREHOLDERS’ EQUITY The Knights Company is authorized 100,000 shares ($10 dividend), preferred stock to issue: 1,000,000 shares, common stock Knights had a balance in its Contributed Surplus – Common Shares account of $30,000, and a balance in its retained earnings account of $200,000. The following transactions were completed during 2007: No. of Transaction Date Transaction/Event (1) Jan. 10, 2007 Issued 60,000 shares of common stock for cash at $30 per share. (2)
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Unformatted text preview: Feb. 5, 2007 Issued 4,000 shares of preferred stock for cash at $110 per share. (3) Mar. 18, 2007 Issued 6,000 shares of common stock in exchange for land. The fair value of the stock was $95,000. The land was appraised at $100,000. (4) May 10, 2007 A 3-for-1 split was declared on common shares. (5) Nov. 15, 2007 20,000 common shares were purchased and cancelled at $14. (6) Dec. 10, 2007 Declared the cash dividend on the preferred stock and a cash dividend of $0.50 per share on the common stock. (7) Dec. 31, 2007 Reported net income of $375,000. Required: Prepare the Shareholders Equity section for the Knights Company at December 31, 2007. Make sure to show all supporting computations. (Note: When compute the average cost of common shares, please keep two digits after the decimal point .)...
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