ShannonZehr_ACG2021_Week11-TeamD

ShannonZehr_ACG2021_Week11-TeamD - 10,900-10,900(100,000...

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The following transactions occurred at Horton Inc. during its first year of operation: 1. Issued 100,000 shares of common stock at $5 each; 1,000,000 shares are authorized at $1 par value. Assets = Liabilites + Owners’ Equity +500,000 +100,000 +400,000 2. Issued 10,000 shares of common stock for building and land. The building was appraised for $20,000, but the value of the land is undeterminable. The stock is selling for $10 on the open market. Assets = Liabilites + Owners’ Equity +20,000 +10,000 +80,000 +90,000 3. Purchased 1,000 shares of its own common stock on the open market for $16 per share. Assets = Liabilites + Owners’ Equity -16,000 -16,000 4. Declared a dividend of $0.10 per share on outstanding common stock. The dividend is to be paid after the end of the first year of operations. Market value of the stock is $26. Assets = Liabilites + Owners’ Equity
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Unformatted text preview: +10,900-10,900 (100,000+10,000-1,000)(.10) 5. Declared a 2-for-1 stock split. The market value of the stock was $37 before the stock split. No entry 6. Reported $180,000 of income for the year. Assets = Liabilites + Owners’ Equity +180,000 +180,000 Common stock, 2,000,000 authorized, 220,000 issued, 218,000 outstanding, $.50 par value $110,000 Additional Paid-in capital (400,000+90,000) 490,000 Retained Earnings (180,000-10,900) 169,100 Treasury stock (16,000) Total Stockholders’ Equity $753,100 Horton Inc. is allowed 2,000,000 shares of common stock to issue at $0.50 par value. On December 31, 220,000 were issued, leaving 218,000 outstanding since the company bought 2,000 of their own shares. The numbers shown are the results of a 2 for 1 stock split during the year....
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