$18.00 ACC 557 Homework Chapter 12 (99,9 % Scored)Found in Business: General-Business
Chapter 1, # 0
Question 12 E- 4
Grossman Corporation issued 1,000 shares of stock.
Prepare the entry for the issuance under the following assumptions.
The stock had a par value of $5 per share and was issued for a total of $52,000
Garza Co. had the following transactions during the current period.
Mar. 2 Issued 5,000 shares of $1 par value common stock to attorneys in payment of a bill for $30,000 for services provided in helping the company to incorporate.
June 12 Issued 60,000 shares of $1 par value common stock for cash of $375,000.
July 11 Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share.
Nov. 28 Purchased 2,000 shares of treasury stock for $80,000.
Journalize the transactions.
Question E 12-15
On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.
Complete the tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and book value per share.
On January 1, 2008, Castle Corporation had retained earnings of $550,000. During the year, Castle had the following selected transactions.
1. Declared cash dividends $120,000.
2. Corrected overstatement of 2007 net income because of depreciation error $30,000.
3. Earned net income $350,000.
4. Declared stock dividends $80,000.
Complete the retained earnings statement for the year.
The stockholders' equity accounts of Jajoo Corporation on January 1, 2008, were as follows.
Preferred Stock (10%, $100 par, noncumulative, 5,000 shares authorized) $ 300,000
Common Stock ($5 stated value, 300,000 shares authorized) 1,000,000
Paid-in Capital in Excess of Par Value-Preferred Stock 20,000
Paid-in Capital in Excess of Stated Value-Common Stock 425,000
Retained Earnings 488,000
Treasury Stock-Common (5,000 shares) 40,000
During 2008, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb. 1 Issued 3,000 shares of common stock for $25,000.
Mar. 20 Purchased 1,500 additional shares of common treasury stock at $8 per share.
June 14 Sold 4,000 shares of treasury stock-common for $36,000.
Sept. 3 Issued 2,000 shares of common stock for a patent valued at $17,000.
Dec. 31 Determined that net income for the year was $340,000.
On January 1, 2008, Snider Corporation had the following stockholders' equity accounts.
Common Stock ($10 par value, 90,000 shares issued and outstanding) $900,000
Paid-in Capital in Excess of Par Value 200,000
Retained Earnings 540,000
During the year, the following transactions occurred.
Jan. 15 Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15.
Feb. 15 Paid the dividend declared in January.
Apr. 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $15 per share.
May 15 Issued the shares for the stock dividend.
July 1 Announced a 2-for-1 stock split. The market price per share prior to the announcement was $17. (The new par value is $5.)
Dec. 1 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 10, 2009.
Dec. 31 Determined that net income for the year was $250,000.
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- Posted on Apr. 23, 2012 at 07:56:00AM