Problem 2: stockholders equity:
Sisko corporation’s december 31, 2012 balance sheet included the
following stockholders equity section:
Paid in Capital
Prefered stock ($50 par, 10%, 5,000 shares authorized, 1,000
shares issued and outstanding. $50,000
Common stock ($15 par, 100,000 shares authorized, 5,500 shares
Paid in Capital in excess of par – preferred $6,000
Paid in capital excess of par – common $24,750
Total Paid in Capital $163,850
Total paid in capital and retained earnings
Less treasury stock (300 share of common) ($6,000)
Total Stockholders equity
1. If Siskos December 31, 2012 Balance sheet
reports total assets of $670,000, what amount should the balance
sheet show for total liabilities?
2. Identify the different ways Sisko’s
stockholders have invested in the corporation?
3. At what Average Amount Per Share was the
common stock originally issued?
4. How many shares of common stock are
5. Prior to 2013, how much of Sisko’s net
income was reinvested in the corporation?
6. What is the Average Amount per Share Sisko
paid to purchase the 300 shares of treasury stock now held?
7. Assume the preferred stock is cummulative,
and no dividends were paid in 2011 or 2012. If Sisko wants to pay
$40,000 total dividends in 2013, how much of the $40,000 would be
paid to common stockholders?
8. In 2013, Sisko issues 400 shares of
preferred stock fr $54 per share. Prepare Sisko’s journal entry to
record the issuance of the preffered stock.