Stockholders' equity problem - TAMU uses the cost method to...

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Stockholders’ equity problem At December 31, 2001 TAMU Company had 5,000,000 authorized shares of $10 par common stock, of which 1,800,000 shares were issued and outstanding. The stockholders’ equity accounts at December 31, 2001 had the following balances: Common stock $18,000,000 Additional paid-in capital 9,000,000 Retained earnings 7,700,000 Transactions during 2002 and other information relating to stockholders’ equity accounts were as follows: On January 5, TAMU issued at $20 per share 100,000 shares of $6 preferred stock, $10 par, cumulative. On February 1 TAMU reacquired 20,000 shares of its common stock for $28 per share.
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Unformatted text preview: TAMU uses the cost method to account for treasury stock. On April 30 TAMU sold 700,000 shares of previously unissued common stock at $36 per share. On November 10 TAMU sold 10,000 shares of treasury stock for $39 per share. On December 14 TAMU declared the yearly cash dividend on preferred stock payable on January 14, 2003 to stockholders of record on December 30, 2002. On December 18 TAMU declared a cash dividend of $5 per share of common stock payable on January 16 to stockholders of record on December 31, 2002. Net income was $8,500,000....
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This note was uploaded on 02/05/2012 for the course MATH 112 taught by Professor Taylor during the Spring '06 term at Texas A&M University, Corpus Christi.

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Stockholders' equity problem - TAMU uses the cost method to...

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