1- Dividends Per Share

Fairmount Inc., a developer of radiology equipment, has stock outstanding as follows: 17,000 shares of cumulative preferred 1% stock, $140 par, and 57,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $15,980; second year, $22,100; third year, $65,810; fourth year, $113,860.

Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".

	1st Year	2nd Year	3rd Year	4th Year
Preferred stock (dividend per share)	$	$	$	$
Common stock (dividend per share)	$	$	$	$

2- Entries for Issuing Par Stock

On January 14, Peerless Rocks Inc., a marble contractor, issued for cash 45,000 shares of $12 par common stock at $41, and on March 17, it issued for cash 150,000 shares of $8 par preferred stock at $10.

a. Journalize the entries for January 14 and March 17.

For a compound transaction, if an amount box does not require an entry, leave it blank.

b. What is the total amount invested (total paid-in capital) by all stockholders as of March 17? $ ________

3- Issuing Stock

Newgen Products Inc., a wholesaler of office products, was organized on January 30 of the current year, with an authorization of 100,000 shares of 3% preferred stock, $40 par and 450,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations:

Journalize the transactions.

Jan. 30. Issued 125,000 shares of common stock at par for cash.

Jan. 31 Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

Feb. 21. Issued 22,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $40,000, $219,000, and $49,000, respectively.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Mar. 2. Issued 23,000 shares of preferred stock at $50 for cash.

For a compound transaction, if an amount box does not require an entry, leave it blank.

4-

Entries for Cash Dividends

The declaration, record, and payment dates in connection with a cash dividend of $80,900 on a corporation's common stock are April 1, May 1, and June 3. Journalize the entries required on each date. If no entry is required, type "No entry required" and leave the amount boxes blank.

5-

Treasury Stock Transactions

Beaverhead Creek Inc. bottles and distributes spring water. On April 27 of the current year, Beaverhead Creek reacquired 6,800 shares of its common stock at $85 per share. On July 13, Beaverhead Creek sold 4,800 of the reacquired shares at $92 per share. The remaining 2,000 shares were sold at $82 per share on October 8.

a. Journalize the transactions of April 27, July 13, and October 8. For a compound transaction, if an amount box does not require an entry, leave it blank.

b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? $ ________ (Debit/Credit)

c. For what reasons might Beaverhead Creek have purchased the treasury stock? -To support the market price of the stock.

-To provide shares for resale to employees.

-For reissuance to employees as a bonus according to stock purchase agreements.

-None of these reasons.

-All of these reasons.

6-

Stockholders' Equity Section of Balance Sheet

The following accounts and their balances appear in the ledger of Cline Properties Inc. on April 30 of the current year:

Common Stock, $15 par	$244,500
Paid-In Capital in Excess of Par	19,560
Paid-In Capital from Sale of Treasury Stock	10,600
Retained Earnings	404,000
Treasury Stock	15,200

Prepare the Stockholders' Equity section of the balance sheet as of April 30. Fifty thousand shares of common stock are authorized, and 800 shares have been reacquired.

7- Retained Earnings Statement

Bancroft Corporation, a manufacturer of industrial pumps, reports the following results for the year ending October 31, 2014:

Retained earnings, November 1, 2013	$644,500
Net income	70,900
Cash dividends declared	12,800
Stock dividends declared	24,100

Prepare a retained earnings statement for the fiscal year ended October 31, 2014.

Dividends on Preferred and Common Stock

Love Theatre Inc. owns and operates movie theaters throughout New Mexico and Utah. Love Theatre has declared the following annual dividends over a six-year period: 2009, $24,000; 2010, $72,000; 2011, $120,000; 2012, $132,000; 2013, $180,000; and 2014, $216,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 30,000 shares of cumulative, 2% preferred stock, $100 par, and 100,000 shares of common stock, $15 par.

Required:

1. Calculate the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears on January 1, 2009. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".

						Preferred Dividends								Common Dividends
Year		Total Dividends				Total				Per Share				Total				Per Share
2009		$ 24,000				$				$				$				$
2010		72,000				$				$				$				$
2011		120,000				$				$				$				$
2012		132,000				$				$				$				$
2013		180,000				$				$				$				$
2014		216,000				$				$				$				$
										$								$

2. Calculate the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places.

Average annual dividend for preferred	$ per share
Average annual dividend for common	$ per share

3. Assuming a market price per share of $113 for the preferred stock and $19 for the common stock, calculate the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.

Round your answers to two decimal places.

Preferred stock	%
Common stock	%