Question 12 E- 4        
Grossman Corporation issued 1,000 shares of stock.
Instructions
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

Question 12-7
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.
Instructions
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.
Instructions
Complete the tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and book value per share.
Question E12-17
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.
Instructions
Complete the retained earnings statement for the year.
Question P12-3A
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.

Question 12-7A

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.