Question

PLUSi atemadlate sconsting 15 en Assignment temaamtin 1e 16) lvanhoe Company has two classes of capital stock Preferred Stock, 148,100 shares Common Stock, 1,961,000 shares and $5 par common. At December 31, 2017, the following accounts were included in stockholders" equity. 191,000 27,124,000 4,537,000 Paid-in Capital in Excess of Par-Common Stock y Study The following transactions affected stockholders' equty during 2018 an. 1 28,400 shares of preferred stock issued at $24 per share Feb. 1 53,400 shares of common stock issued at $20 per share. une 1 2-for-1 stock split (par value reduced to $2.50) dy1 31,100 shares of common treasury stock purchased at $10 per share. Ivanhoe uses the cost method. Sept. 15 9,900 shares of treasury stock reissued at $11 per share Dec. 31 The preferred dividend is declared, and a common dividend of 54 per share is declared. Dec. 31 Net income is $2,093,000.

Answer 1

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Ivanhoe Company
Stockholder's Equity
Capital Stock:
Preferred Stock, $20 par, 8%, 176,500 shares issued and outstnading			$ 3,530,000
Common Stock, $2.5 par, 4,028,800 shares issued, 4,007,600 Outstnading			$10,072,000
Total Capital Stock			$13,602,000
Additional paid in capital:
in exces of par- Preferred Stock		$     304,600
in exces of par- Common Stock		$27,925,000
Treasury Stock		$          9,900	$28,239,500
Total paid in Capital			$41,841,500
Retained Earning			$ 4,183,496
Total Paid in captial and Retained Earning			$46,024,996
Less: Treasury Stock
21,200 Common Stock			$    -212,000
Total Stockholder Equity			$45,812,996

Working in the form of T - Account
Preferred Stock					Retained Earning
Debit		Credit			Debit		Credit
		Balance	$ 2,962,000		Dec 31 (3530000*8%)	$      282,400	Balance	$4,537,000
		Jan 1 (28400*20)	$     568,000		Dec 31 (Working below)	$   2,164,104	Dec 31	$2,093,000
		Balance	$ 3,530,000				Balance	$4,183,496
Common Stock					Treasury
Debit		Credit			Debit		Credit
		Balance	$ 9,805,000		Jul 1 (31100*10)	$      311,000	Sep 15 (9900*10)	$     99,000
		Feb 1 (53400*5)	$     267,000
		Balance	$10,072,000		Balance	$      212,000
Paid in Cap-in excess of par, Common					Paid in Cap-in excess of par, Treasury
Debit		Credit			Debit		Credit
		Balance	$27,124,000				Sep 15 (9900*1)	$        9,900
		Feb 1 (53400*15)	$     801,000
		Balance	$27,925,000				Balance	$        9,900
Paid in Cap-in excess of par, Preferred					Working for Common Stock Dividend:
Debit		Credit
		Balance	$     191,000		Beginning No of Common Share	1,961,000
		Jan 1 (28400*4)	$     113,600		Add: New Issue on Feb 1	53,400
					No of Share before Split	2,014,400
		Balance	$     304,600		No of Share after Split	4,028,800
					(2014400*2)
					Less: Treasury Stock	-31,100
					Add: Reissue	9,900
					Final no of Shares	4,007,600
					Dividen 0.54*4007600	$   2,164,104

Ivanhoe Company
Stockholder's Equity
Capital Stock:
Preferred Stock, $20 par, 8%, 176,500 shares issued and outstnading			$ 3,530,000
Common Stock, $2.5 par, 4,028,800 shares issued, 4,007,600 Outstnading			$10,072,000
Total Capital Stock			$13,602,000
Additional paid in capital:
in exces of par- Preferred Stock		$     304,600
in exces of par- Common Stock		$27,925,000
Treasury Stock		$          9,900	$28,239,500
Total paid in Capital			$41,841,500
Retained Earning			$ 4,183,496
Total Paid in capital and Retained Earning			$46,024,996
Less: Treasury Stock
21,200 Common Stock			$    -212,000
Total Stockholder Equity			$45,812,996