Assignment two (ch.13) (15%) - with 4 marks bonus > Question one - The equity sections...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assignment two (ch.13) (15%) - with 4 marks bonus > Question one - The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. - 13 marks Stockholders' Equity (January 1) Retained earnings Total stockholders' equity Common stock-$4 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 160,000 Paid-in capital in excess of par value, common stock 120,000 320,000 600,000 Stockholders' Equity (December 31) Common stock-$4 par value, 100,000 shares authorized, 47,400 shares issued, 3,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($30,000 restricted by treasury stock) Less cost of treasury stock S 189,600 179,200 400,000 768,800 (30,000) $ 738,800 Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $0.50 per share cash dividend, date of record January 10. Declared a $0.50 per share cash dividend, date of record April 10. March 20 Purchased treasury stock for cash. April 5 July 5 Declared a $0.50 per share cash dividend, date of record July 10. July 31 Declared a 20% stock dividend when the stock's market value was $12 per share. August 14 Issued the stock dividend that was declared on July 31. October 5 Declared a $0.50 per share cash dividend, date of record October 10. Requirements: Provide a detailed answer showing all the computation. (13 marks) 1. How many common shares are outstanding on each cash dividend date? 3 marks 2. What is the total dollar amount for each of the four cash dividends? 2 3. What is the amount of retained earnings transferred to paid- in capital accounts (capitalized) for the stock dividend? 3 4. What is the per share cost of the treasury stock purchased? 2 5. How much net income did the company earn this year? 3 > Question two - Raphael Corporation's balance sheet shows the following stockholders' equity section. - 6 marks Preferred stock-5% cumulative, S par value, 1,000 shares authorized, issued, and outstanding $ 50,000 Common stock-$ par value, 4,000 shares authorized, issued, and outstanding Retained earnings 80,000 150,000 $ Total stockholders' equity 280,000 Required: 1. Determine the par values of the corporation's preferred stock and its common stock. 2 marks 2. If two years' preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $11,500, compute the total amount paid to (a) preferred shareholders and (b) common shareholders. 4 marks bonus Assignment two (ch.13) (15%) - with 4 marks bonus > Question one - The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. - 13 marks Stockholders' Equity (January 1) Retained earnings Total stockholders' equity Common stock-$4 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 160,000 Paid-in capital in excess of par value, common stock 120,000 320,000 600,000 Stockholders' Equity (December 31) Common stock-$4 par value, 100,000 shares authorized, 47,400 shares issued, 3,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($30,000 restricted by treasury stock) Less cost of treasury stock S 189,600 179,200 400,000 768,800 (30,000) $ 738,800 Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $0.50 per share cash dividend, date of record January 10. Declared a $0.50 per share cash dividend, date of record April 10. March 20 Purchased treasury stock for cash. April 5 July 5 Declared a $0.50 per share cash dividend, date of record July 10. July 31 Declared a 20% stock dividend when the stock's market value was $12 per share. August 14 Issued the stock dividend that was declared on July 31. October 5 Declared a $0.50 per share cash dividend, date of record October 10. Requirements: Provide a detailed answer showing all the computation. (13 marks) 1. How many common shares are outstanding on each cash dividend date? 3 marks 2. What is the total dollar amount for each of the four cash dividends? 2 3. What is the amount of retained earnings transferred to paid- in capital accounts (capitalized) for the stock dividend? 3 4. What is the per share cost of the treasury stock purchased? 2 5. How much net income did the company earn this year? 3 > Question two - Raphael Corporation's balance sheet shows the following stockholders' equity section. - 6 marks Preferred stock-5% cumulative, S par value, 1,000 shares authorized, issued, and outstanding $ 50,000 Common stock-$ par value, 4,000 shares authorized, issued, and outstanding Retained earnings 80,000 150,000 $ Total stockholders' equity 280,000 Required: 1. Determine the par values of the corporation's preferred stock and its common stock. 2 marks 2. If two years' preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $11,500, compute the total amount paid to (a) preferred shareholders and (b) common shareholders. 4 marks bonus
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Case Study 2 - Moren Corporation Moren Corporation was building three additional generation stations to serve its rapidly expanding energy market. To link these stations with a total area grid, a new...
-
Dragons Den The Dragons Den television series features a number of potential entrepreneurs pitching their innovative business ideas to a panel of venture capitalists. The venture capitalists then...
-
In the article "Violence and Sex Impair Memory for Television Ads" (Journal of Applied Psychology, Vol. 87, No. 3, pp. 557-564), B. Bushman and A. Bonacci studied whether the type of television...
-
1.1. Define a want and a need, and give an example of each. Then, explain how the relationship between wants and needs affects the way people spend money. (4 points) 2.. Identify and describe an...
-
Firm Z, a corporation with a 35 percent tax rate, has $100,000 to invest in year 0 and two investment choices. Investment 1 will generate $12,000 taxable cash flow annually for years 1 through 5. In...
-
An airplane with weight W and total wing span b flies horizontally at a constant speed v. Use the airplane as a reference frame; that is, consider the airplane to be motionless and the air to flow...
-
What is a liability? Identify its crucial characteristics.
-
The disclosure rules for business combinations complicate financial analysis. Trend analysis becomes difficult because comparative financial statements are not retroactively adjusted to include data...
-
please make it short "Choose a religion and construct a response to a NRM based on your initial choice." Based on your understanding of the religions covered in class, construct a response to a New...
-
=> Exercise 3. Consider an exponentially distributed random variable f(X;X) = A exp(-Ar). (a) Show that the expected value of X is 1. [5] (b) Verify that the estimator = 1/ is biased, with bias equal...
-
It is currently winter in California, but the southern hemisphere is experiencing summer. Draw a sketch to explain why the seasons are different in the northern and southern hemispheres and state two...
-
Which affiliate marketing strategy do you think is the most effective? Why? Compare and contrast permission marketing, affiliate marketing, and viral marketing. Incorporate relevant examples to...
-
Focusing on Humanistic and Positive Psychology. Based on the reading "Positive Psychology: An Introduction" After reading browse the following Positive Psychology/Humanistic websites: The Journal of...
-
How do environmental globalization processes, such as climate change and transboundary pollution, challenge traditional frameworks for environmental governance and necessitate a more collaborative...
-
Saved 2 Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: 10 points eBook Sales Variable...
-
Midwest Shipping pays employees at the end of each month. Payroll information is listed below for January, the first month of the fiscal year. Assume that none of the employees exceeds the federal...
-
The Cholesterol Level data sets give cholesterol levels of heart attack patients. Cholesterol measures are taken 2, 4, and 14 days aft er a patient has suffered a heart attack. Is there a significant...
-
Give the entry to record abandonment in each of the following cases. a. Gaylene Energy Company abandoned an unproved property that cost $150,000. The property was considered significant and had been...
-
Intercontinental Oil and Gas Company drilled an exploratory well that found reserves, but the reserves could not be classified as proved at that time. No major capital expenditure was required. How...
-
a. Wildcat Oil Corporation drills an exploratory well during 2016 that finds oil, but not in commercially producible quantities at current oil prices. Since proved reserves are not found, Wildcat...
Study smarter with the SolutionInn App