Windsor Company was formed on July 1, 2023. It was authorized to issue 314,000 shares of $10 par value common stock and 96,400 shares of 8%, $25 par value, cumulative and nonparticipating preferred stock. Windsor Company has a July 1-June 30 fiscal year. The following information relates to the stockholders' equity accounts of Windsor Company. Common Stock Prior to the 2025-2026 fiscal year, Windsor Company had 106,300 shares of outstanding common stock issued as follows. 1. 86,800 shares were issued for cash on July 1, 2023, at $33 per share. 2. 3. On July 24, 2023, 5,000 shares were exchanged for a plot of land which cost the seller $69,100 in 2017 and had a fair value (based on recent land sales) of $219,900 on July 24, 2023. 14,500 shares were issued on March 1, 2024, for $44 per share. During the 2025-2026 fiscal year, the following transactions regarding common stock took place. November 30, 2025 December 15, 2025 Windsor purchased 2,100 shares of its own stock on the open market at $38 per share. Windsor uses the cost method for treasury stock. Windsor declared a 5% stock dividend for stockholders of record on January 15, 2026, to be issued on January 31, 2026. Windsor was having a liquidity problem and could not afford a cash dividend at the time. Windsor's common stock was selling at $56 per share on December 15, 2025. June 20, 2026 Windsor sold 550 shares of its own common stock that it had purchased on November 30, 2025, for $22,700. Preferred Stock Windsor issued 41,900 shares of preferred stock at $44 per share on July 1, 2024. Cash Dividends Windsor has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2026, are shown below. Declaration Date Common Stock Preferred Stock 12/15/24 $0.30 per share $1 per share 6/15/25 $0.30 per share $1 per share 12/15/25 $1 per share No cash dividends were declared during June 2026 due to the company's liquidity problems. Retained Earnings As of June 30, 2025, Windsor's retained earnings account had a balance of $658,000. For the fiscal year ending June 30, 2026, Windsor reported net income of $40,200. Prepare the stockholders' equity section of the balance sheet, for Windsor Company as of June 30, 2026, as it should appear in its annual report to the shareholders. (Enter account name only and do not provide descriptive information.) WINDSOR COMPANY Stockholders' Equity LA LA $
Windsor Company was formed on July 1, 2023. It was authorized to issue 314,000 shares of $10 par value common stock and 96,400 shares of 8%, $25 par value, cumulative and nonparticipating preferred stock. Windsor Company has a July 1-June 30 fiscal year. The following information relates to the stockholders' equity accounts of Windsor Company. Common Stock Prior to the 2025-2026 fiscal year, Windsor Company had 106,300 shares of outstanding common stock issued as follows. 1. 86,800 shares were issued for cash on July 1, 2023, at $33 per share. 2. 3. On July 24, 2023, 5,000 shares were exchanged for a plot of land which cost the seller $69,100 in 2017 and had a fair value (based on recent land sales) of $219,900 on July 24, 2023. 14,500 shares were issued on March 1, 2024, for $44 per share. During the 2025-2026 fiscal year, the following transactions regarding common stock took place. November 30, 2025 December 15, 2025 Windsor purchased 2,100 shares of its own stock on the open market at $38 per share. Windsor uses the cost method for treasury stock. Windsor declared a 5% stock dividend for stockholders of record on January 15, 2026, to be issued on January 31, 2026. Windsor was having a liquidity problem and could not afford a cash dividend at the time. Windsor's common stock was selling at $56 per share on December 15, 2025. June 20, 2026 Windsor sold 550 shares of its own common stock that it had purchased on November 30, 2025, for $22,700. Preferred Stock Windsor issued 41,900 shares of preferred stock at $44 per share on July 1, 2024. Cash Dividends Windsor has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2026, are shown below. Declaration Date Common Stock Preferred Stock 12/15/24 $0.30 per share $1 per share 6/15/25 $0.30 per share $1 per share 12/15/25 $1 per share No cash dividends were declared during June 2026 due to the company's liquidity problems. Retained Earnings As of June 30, 2025, Windsor's retained earnings account had a balance of $658,000. For the fiscal year ending June 30, 2026, Windsor reported net income of $40,200. Prepare the stockholders' equity section of the balance sheet, for Windsor Company as of June 30, 2026, as it should appear in its annual report to the shareholders. (Enter account name only and do not provide descriptive information.) WINDSOR COMPANY Stockholders' Equity LA LA $
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 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...
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