Major league apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. the following transactions affect stockholders’ equity during 2012, its first year of operations: jan. 2 issue 118,000 shares of common stock for $65 per share. feb. 14 issue 64,000 shares of preferred stock for $11 per share. may 8 repurchase 11,000 shares of its own common stock for $55 per share. may 31 reissue 7,000 shares of treasury stock for $60 per share. dec. 1 declare a cash dividend on its common stock of $.70 per share and a $32,000 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on december 15. the dividend is payable on december 30. (hint: dividends are not paid on treasury stock.) dec. 30 pay the dividends declared on december 1. given the information above, what are the amount for "retained earning" and "treasury stock" on the balance sheet?

Evelyn would like to open a small business that is categorized as a being in the distribution industry. to do this she could open a establishment.

You have just been hired as a financial analyst for barrington industries. unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. so, your first job will be to recreate the firm's cash flow statement for the year just ended. the firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. it earned $5 million in net income during the year but paid $800,000 in dividends to common shareholders. throughout the year, the firm purchased $5.5 million of machinery that was needed for a new project. you have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 6% interest rate. what was the firm's end- of-year cash balance? recreate the firm's cash flow statement to arrive at your answer

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at december 31. step 1: determine what the current account balance equals. step 2: determine what the current account balance should equal. step 3: record the december 31 adjusting entry to get from step 1 to step 2. assume no other adjusting entries are made during the year. a. prepaid insurance. the prepaid insurance account has a $4,700 debit balance to start the year. a re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. prepaid insurance. the prepaid insurance account has a $5,890 debit balance at the start of the year. a review of insurance policies and payments shows $1,040 of insurance has expired by year-end. c.prepaidrent.onseptember1ofthecurrentyear,thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.