Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Interpreting The Stockholder's Equity Section of Balance Sheet

Hampton Inc. start operations on January 1, 2007.  On December 31, 2008, it reported following stockholders equity section of its balance sheet.

December 31
2008
2007
Stockholders' equity
 
 
7% cumulative preferred stock, $100 par value
$300,000
$300,000
Common stock, $2 par value
150,000
120,000
Paid-in capital in excess of par value
830,000
620,000
Retained earnings
362,000
157,500
Treasury stock
(16,800)
(25,725)
Total stockholders' equity
$1,625,700
$1,171,775

Company has policy of paying out 10% of its net income as cash dividends. Date of declaration is always 30 days after end of the year, and date of payment occurs 60 days after the end of the year. At year-end 2007, average price of treasury stock was $10.50. At year-end 2008, average price of treasury stock was $12.

Required.

A. Compute the number of preferred shares have been issued as of year-end 2007 and 2008?

B. How many common shares have been issued as of year-end 2007?  As of year-end 2008?

C. How many treasury shares are there at year-end 2007?  At year-end 2008?

D. How many common shares are outstanding at year-end 2007?  At year-end 2008?

E. Compute the average price (at original issuance) of common stock as of year-end 2007?

F. Determine the average selling price of shares during 2008?

G. Determine net income for 2007?  For 2008?

H. What was the dividend per share paid to preferred stock on March 1, 2008?

I. What was the dividend per share paid to common stock on March 1, 2008?

J. What is the dividend per share which is scheduled to be paid to common stock on March 1, 2009?  describe why?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M920895

Have any Question? 


Related Questions in Accounting Basics

Accounting questionfollowing the completion of the

Accounting Question: Following the completion of the investigation of a potential fraud case, you are informed by your manager that the case will be brought to trial. As part of the litigation process you will be asked t ...

Preston auto paint company had the temporary free use of an

Preston Auto Paint Company had the temporary free use of an old building and completed the following transactions in September 2010: Sept. 1 The company was organized and received USD 100,000 cash from the issuance of ca ...

Joint venture accountingquestion joe and faith were partner

Joint venture accounting Question: joe and faith were partner partners in the following scheme, joe to take five ninths, and faith fourth ninths of the profits. They agree to guarantee the subscription at 85000 shares of ...

Consumers choices are prey to subtle discrepancies that

Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in improving your decision making. As the readings fo ...

1 prepare an answer to management application ma 13-31

1. Prepare an answer to Management Application MA 13-31, which can be found on page 13-24 of your text (the question concerns ExxonMobil). 2. Oregon Manufacturing had the following data for the past three months.   Janua ...

Focus of the final paperyouve just been hired onto abc

Focus of the Final Paper You've just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has an ...

Accounting discussiona local movie theater owner explains

Accounting Discussion A local movie theater owner explains to you that ticket sales on weekends and evenings are strong, but attendance during the weekdays, Monday through Thursday, is poor. The owner proposes to offer a ...

Problemmaquoketa services was formed on may 1 2017the

Problem Maquoketa Services was formed on May 1, 2017. The following transactions took place during the first month. Transactions on May 1: 1. Jay BradFord invested $40,000 cash in the company, as its sole owner . 2. Hire ...

1 what is the beta of a firm whose equity has an expected

1. What is the beta of a firm whose equity has an expected return of 21.30%, the risk-free rate is 7%, and the expected return on the stock market is 18%? 2. Two reasons for the agency problem in modern corporations is: ...

Modern furniture company had finally arrived at the point

Modern Furniture Company had finally arrived at the point where it had a sufficient excess cash flow of $4.8 million to consider paying a dividend. It had 3 million shares of stock outstanding and was considering paying ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro