Monty Company reported the following amounts in the stockholders’ equity section of its December 31, 2016,...

80.2K

Verified Solution

Question

Accounting

Monty Company reported the following amounts in thestockholders’ equity section of its December 31, 2016, balancesheet.
Preferred stock, 9%, $100 par (10,000 shares authorized, 1,800shares issued) $180,000
Common stock, $5 par (101,500 shares authorized, 20,300 sharesissued) 101,500
Additional paid-in capital 130,000
Retained earnings 486,000
Total $897,500

During 2017, Monty took part in the following transactionsconcerning stockholders’ equity.
1. Paid the annual 2016 $9 per share dividend on preferred stockand a $2 per share dividend on common stock. These dividends hadbeen declared on December 31, 2016.
2. Purchased 1,800 shares of its own outstanding common stock for$41 per share. Monty uses the cost method.
3. Reissued 700 treasury shares for land valued at $31,400.
4. Issued 510 shares of preferred stock at $104 per share.
5. Declared a 10% stock dividend on the outstanding common stockwhen the stock is selling for $45 per share.
6. Issued the stock dividend.
7. Declared the annual 2017 $9 per share dividend on preferredstock and the $2 per share dividend on common stock. Thesedividends are payable in 2018.
please explain detail

Answer & Explanation Solved by verified expert

4.0 Ratings (804 Votes)

Solution Journal Entries Monty Company Event Particulars Debit Credit 1 Dividend payable Dr 18009 203002 5680000 To Cash 5680000 To record dividend payment 2 Treasury Stock Dr See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!

Become a Member

Monty Company reported the following amounts in the stockholders’ equity section of its December 31, 2016,...

80.2K

Verified Solution

Question

Accounting

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Other questions asked by students

Briefly explain the difference between point source and nonpoint source water pollution? Provide one example each

I'm running a single cylinder engine simulation using ADAMS/View to determine the torque output based off...

Three times a number x increased by 8 is 14. Which one of the following...

Problem 6-4A (Algo) Report inventory...

Rooney Manufacturing Company established the following standard price and cost data: \table[[Sales price,$8.30...

Non-current liabilities 10% Loan - 2,000 Deferred tax 1,700 800 Environmental provision 3,300 - T...

Due to the sluggish economy, the Constellation Company has experienced some difficulty in selling its...

Compute the cost of a single preschool class and a single birthday party using the...

orp. issues 1,060 shares of $5 par common stock at $18 per share. When the...

Exercise 6-16 Working with a Segmented Income Statement: Break-Even Analysis (LO6-4, LO6-5) /The following information...

ACC100-50-2011) HOUSE Question 4P10-2Aa.. Homework: Assignment 108 www.no HW Bare 43., 1904 6.6310 Seve mowy,...

The inventory records for Radford Company reflected the following Beginning inventory on May 1 First...

Preferred stock, 9%, $100 par (10,000 shares authorized, 1,800shares issued)		$180,000
Common stock, $5 par (101,500 shares authorized, 20,300 sharesissued)		101,500
Additional paid-in capital		130,000
Retained earnings		486,000
Total		$897,500

1.		Paid the annual 2016 $9 per share dividend on preferred stockand a $2 per share dividend on common stock. These dividends hadbeen declared on December 31, 2016.
2.		Purchased 1,800 shares of its own outstanding common stock for$41 per share. Monty uses the cost method.
3.		Reissued 700 treasury shares for land valued at $31,400.
4.		Issued 510 shares of preferred stock at $104 per share.
5.		Declared a 10% stock dividend on the outstanding common stockwhen the stock is selling for $45 per share.
6.		Issued the stock dividend.
7.		Declared the annual 2017 $9 per share dividend on preferredstock and the $2 per share dividend on common stock. Thesedividends are payable in 2018.