Blossom Corporation, a publicly traded company, was incorporated on May 1, 2024. It is authorized to issue an unlimited number of $2 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: May 5 Issued 749,000 common shares for $4 per share. July 1 Issued 34,000 preferred shares for $40 per share. Sept. 1 Issued 44,000 common shares for $264,000. Oct. 1 Issued 249,000 common shares for $5 per share. Nov. 16 Repurchased and retired 24,000 common shares at $4 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Jan. 5 Issued 14,000 common shares for $7 per share. Mar. 1 Repurchased and retired 9,000 common shares at $6 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. 25 Issued 5,000 preferred shares for $60 per share. Apr. 15 30 30 Declared a $78,000 cash dividend to the preferred shareholders, to shareholders of record on April 30, payable on May 15. Reported net income of $6 million for the year.

Blossom Corporation, a publicly traded company, was incorporated on May 1, 2024. It is authorized to issue an unlimited number of $2 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: May 5 Issued 749,000 common shares for $4 per share. July 1 Issued 34,000 preferred shares for $40 per share. Sept. 1 Issued 44,000 common shares for $264,000. Oct. 1 Issued 249,000 common shares for $5 per share. Nov. 16 Repurchased and retired 24,000 common shares at $4 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Jan. 5 Issued 14,000 common shares for $7 per share. Mar. 1 Repurchased and retired 9,000 common shares at $6 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. 25 Issued 5,000 preferred shares for $60 per share. Apr. 15 30 30 Declared a $78,000 cash dividend to the preferred shareholders, to shareholders of record on April 30, payable on May 15. Reported net income of $6 million for the year.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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