Question

Problem 15-03 Cheyenne Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders' equity. Preferred Stock, 152,800 shares Common Stock, 1998,000 shares Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings $3,056,000 9,990,000 200,000 26,724,000 4,571,000 The following transactions affected stockholders' equity during 2021. 2 Jan. 1 Feb. 1 June 1 July 1 Sept 15 Dec 31 Dec 31 27.600 shares of preferred stock issued at $24 per share. 5 1,100 shares of common stock issued at $20 per share. -for-1 stock split (par value reduced to $2.50). 27,400 shares of common treasury stock purchased at $10 per share. Cheyenne uses the cost method 9.400 shares of treasury stock reissued at $11 per share. The preferred dividend is declared, and a common dividend of 55t per share is declared Net income is $2,076,000 Prepare the stockholders' equity section for Cheyenne Company at December 31, 2021. (Enter account name only and do not provide descriptive information.) CHEYENNE COMPANY Stockholders' Equity For the Year Ended December 31, 2021 Capital Stock Preferred Stock Common Stock Total Capital Stock Additional Paid in Capital Paid-in Capital in Excess of Pa Paid-in Capital in Excess of Pa Paid-in Capital from Treasury: Stockholders' Equity Retained Earnings Total Paid-in Capital and Retained Earnings Less Treasury Stock Total Stockholders' Equity SHOW LIST OF ACCOUNTS

Problem 15-03 Cheyenne Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders' equity. Preferred Stock, 152,800 shares Common Stock, 1998,000 shares Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings $3,056,000 9,990,000 200,000 26,724,000 4,571,000 The following transactions affected stockholders' equity during 2021. 2 Jan. 1 Feb. 1 June 1 July 1 Sept 15 Dec 31 Dec 31 27.600 shares of preferred stock issued at $24 per share. 5 1,100 shares of common stock issued at $20 per share. -for-1 stock split (par value reduced to $2.50). 27,400 shares of common treasury stock purchased at $10 per share. Cheyenne uses the cost method 9.400 shares of treasury stock reissued at $11 per share. The preferred dividend is declared, and a common dividend of 55t per share is declared Net income is $2,076,000 Prepare the stockholders' equity section for Cheyenne Company at December 31, 2021. (Enter account name only and do not provide descriptive information.) CHEYENNE COMPANY Stockholders' Equity For the Year Ended December 31, 2021 Capital Stock Preferred Stock Common Stock Total Capital Stock Additional Paid in Capital Paid-in Capital in Excess of Pa Paid-in Capital in Excess of Pa Paid-in Capital from Treasury: Stockholders' Equity Retained Earnings Total Paid-in Capital and Retained Earnings Less Treasury Stock Total Stockholders' Equity SHOW LIST OF ACCOUNTS

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Answer 1

The excel sheet for the answer along with its derivation formulas have been given.

3 3608000 10245500 13853500 Capital Stock Preferred Stock Common Stock Total Capital Stock Additional Paid-in Capital Paid-in Capital in Excess of Par - Common Stock Paid-in Capital in Excess of Par - Preferred Stock Paid-in Capital from Treasury Stock 27490500 310400 9400 9 10 11 12 13 27810300 41663800 4114250 45778050 14 Total Paid-in Capital Retained Earnings Total Paid-in Capital and Retained Earnings Less: Treasury Stock Total Stockholders' Equity 15 16 180000 45598050 17

+ =3056000+(27600*20) =9990000+(51100*5) =C4+C5 6 Capital Stock Preferred Stock Common Stock Total Capital Stock Additional Paid-in Capital Paid-in Capital in Excess of Par - Common Stock =26724000+(51100*15) Paid-in Capital in Excess of Par - Preferred Stock = 200000+(27600*4) Paid-in Capital from Treasury Stock =9400*1 7 10 12 =sum(B8:B10) =C6+C11 4114250 =C12+C13 14 Total Paid-in Capital Retained Earnings Total Paid-in Capital and Retained Earnings Less: Treasury Stock Total Stockholders' Equity 15 = (27400-9400)*10 =C14-C16 17

Calculation of retained earnings:

Beginning retained earnings	4571000
Add: Net income	2076000
Less: Preferred dividend	288640
Less: Common dividend	2244110
Ending retained earning	4114250

Common dividend:

Total shares : 1998000 + 51100 = 2049100

Shares after stock split = 2049100 * 2 = 4098200

Ending shares = 4098200 -27400 + 9400 = 4080200

Common dividend = 0.55 * 4080200 = 2244110

3 3608000 10245500 13853500 Capital Stock Preferred Stock Common Stock Total Capital Stock Additional Paid-in Capital Paid-in Capital in Excess of Par - Common Stock Paid-in Capital in Excess of Par - Preferred Stock Paid-in Capital from Treasury Stock 27490500 310400 9400 9 10 11 12 13 27810300 41663800 4114250 45778050 14 Total Paid-in Capital Retained Earnings Total Paid-in Capital and Retained Earnings Less: Treasury Stock Total Stockholders' Equity 15 16 180000 45598050 17

+ =3056000+(27600*20) =9990000+(51100*5) =C4+C5 6 Capital Stock Preferred Stock Common Stock Total Capital Stock Additional Paid-in Capital Paid-in Capital in Excess of Par - Common Stock =26724000+(51100*15) Paid-in Capital in Excess of Par - Preferred Stock = 200000+(27600*4) Paid-in Capital from Treasury Stock =9400*1 7 10 12 =sum(B8:B10) =C6+C11 4114250 =C12+C13 14 Total Paid-in Capital Retained Earnings Total Paid-in Capital and Retained Earnings Less: Treasury Stock Total Stockholders' Equity 15 = (27400-9400)*10 =C14-C16 17