13-2 Rodriguez Corporation issued 18,000 shares of its common stock for $160,000. 1. The stock has a $2 par value, 2. The stock has neither par nor stated value. 3. The stock has a $5 stated value.

13-3 Prepare journal entries for each of the following four issuances of stock. 1. A corporation issued 4,000 shares of $5 par value common stock for $40,000. 2. A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $50,000. The stock has a $1 per share stated value. 3. A corporation issued 3,000 shares of n0-par common stock to its promoters, in exchange for their efforts, estimated to be worth $50,000. The stock has no stated value. 4. A corporation issued 1,500 shares of $50 par value preferred stock for $100,000 cash.

13-4 Sudoku Company issues 9,000 shares of $9 par value common stock in exchange for land and building. The land is valued at $65,000 and the building at $100,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

13-5 On June 30, 2017, Sharper Corporations common stock is is priced at $65 per share before any stock dividend or split, and its stockholders equity section of the balance sheet appears as follows:

Com. stock - $10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding $500,000

Paid-in capital in excess of par value, common stock 200,000

Retained earnings 660,000

Total stockholders equity $1,360,000

1. Assume the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stocks par value. Answer these questions about stockholders equity as it exists after issuing the new shares.

a. What is the retained earnings balance?

b. What is the amount of total stockholders equity?

c. How many shares are outstanding?

2. Assume the company implements a 2 for 1 split instead of the stock dividend in part 1. Answer these questions about stockholders equity as it exists after issuing the new shares.

a. What is the retained earnings balance?

b. What is the amount of total stockholders equity?

c. How many shares are outstanding?

13-6 The stockholders equity of TVX at the beginning of the day on February 5 follows:

Com. stock - $10 par value, 150,000 shares authorized, 60,000 shares issued and outstanding $600,000

Paid-in capital in excess of par value, common stock 425,000

Retained earnings 550,000

Total stockholders equity $1,575,000

On February 4, the directors declare a 15% dividend distributable on February 28 to the February 15 stockholders of record. The stocks market value is $40 per share on February 5 before the stock dividend. The stocks market value is $32.50 per share on February 28. 1. Prepare entries to record both the dividend declaration and its distribution. 2. One stockholder owned 800 shares on February 5 before the dividend. Compute the book value per share and total book value of this shareholders shares immediately before and after the stock dividend of February 5. 3. Compute the total market value of the investors shares in part 2 as of February 5 and February 28.

13-8 Yorks outstanding stock consists of 80,000 shares of noncumulative 7 % preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operations the corporation declared and paid the following total cash dividends

2015total cash dividend$15,000

2016total cash dividend$28,000

2017total cash dividend $200,000

2018total cash dividend $100,000

Determine the amount of dividends paid each year to each of the two classes of stockholders preferred and common. Also compute the total dividends paid to each class for the four years combined.

13-9 Use the data in Exercise 13-8 to determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also compute the total dividends paid to each class for the four years combined.

13-10 On October 10, the stockholders equity section of Sherman Systems appears as follows:

Com. stock - $10 par value, 72,000 shares authorized, issued and outstanding $720,000

Paid-in capital in excess of par value, common stock 216,000

Retained earnings 864,000

Total stockholders equity $1,800,000

1.Prepare journal entries to record the following transactions for Sherman Systems: a. Purchased 6,000 shares of its own companys stock at $25 per share on October 11. b. Sold 2,000 treasury shares on November 1 for $31 cash per share. c. Sold all remaining treasury shares on November 25th for $19 cash per share.

13-11 The following information is available for Amos Company for the year ended December 31, 2017. a. Balance of retained earnings, December 31, 2016, prior to discover of error, $1,475,000. b. Cash dividends, declared and paid during 2017, $50,000. c. The company forgot to record 2015 depreciation expense of $45,000, which is net of $4,000 in tax benefits. c. The company earned $220,000 in 2017 net income. Prepare a 2017 statement of retained earnings for Amos Company.

13-12 Ecker Company reports $2,500,000 of net income for 2017 and declares $399,400 on its preferred stock for 2017. At the end of 2017 the company had 652,000 weighted average shares of common stock. 1. What amount of net income is available to common stockholders for 2017? 2. What is the companys basic EPS for 2017?

13-13 Kelley Company reports $840,000 in net income for 2017 and declares $100,000 of cash dividends on its preferred stock. At the end of 2017 the company has 350,000 weighted-average shares of common stock. 1. What amount of net income is available to common stockholders for 2017? 2. What is the companys basic EPS for 2017.]

13-14 Compute price earnings ratio (P/E Ratio) for each company listed below:

Company

Earnings Per Share

Market Value Per Share

Price/Earnings Ratio (P/E Ratio)

1

$11.00

$176.40

2

$23.00

$96.00

3

$4.50

$93.75

4

$25.00

13-15 Compute Dividend Yield for each company listed below:

Company

Annual Cash Dividend Per Share

Market Value Per Share

Dividend Yield

1

$0.48

$120.00

2

$3.96

$15200

3

$13.86

$82.00

4

$16.06

$80.00

13-16

This years dividend on preferred stock has been paid. Determine the book value per share of common stock under two assumptions. 1. No preferred dividends are in arrears. 2. Four years of preferred dividends are in arrears.

Preferred stock 4% $25 PV

10,000 Iss & Out

$250,000

Common stock $8 pv

100,000 Iss & Out

$800,000

Retained earnings

$535,000

Total S/E

$1,585,000

13-18 Prepare journal entries, a statement of retained earnings, and a statement of stockholders equity for Alexander Company:

Jan 2 Purchased 3,000 shares of its own stock at $30 cash per share.

Jan 7 Declared a $2.00 per share cash dividend.

Feb 28 Paid the dividend declared on January 7.

July 9 Sold 1,000 of its treasury shares at $28 cash per share.

Aug 27 Sold 1,300 of its treasury shares at $18 cash per share.

Sept 9 Declared a $3 per share cash dividend.

Oct 22 Paid the dividend declared on Sept 9

Dec. 31 Closed the $72,000 credit balance (from net income) in the Income Summary account to Retained Earnings.