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 company's 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 25 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, 550,000. 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 company's 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 company's basic EPS for 2017.) 13-14 Compute price earnings ratio (P/E Ratio) company listed below: Company Price/Earnings Ratio (P/E Ratio) Earnings Per Share $11.00 $23.00 $4.50 $25.00 Market Value Per Share $176.40 $96.00 $93.75 13-9 Common 80,000 sh $5 par 71/2% preferred, (80,000@$5=$400,000 .075-$30,000) 200,000 sh $1 par common Cumulative Preferred 2015 Divide $20,000 $20,000 2016 Divide $28,000 Due 2015 $10,000 Bal 2016 $18.000 2017 Divier $200.000 Due 2016 $12.000 Due 2017 $30,000 2018 Divide $350,000 $30,000 Total $120,000 Total Combined 13-10 11-Oct Treasury Stock(5000@$25) Cash $158.000 $320,000 $478.000 $598,000 $125,000 $125,000 $31,000 1-Nov Cash (1000 @ $31) T/S (1000@$25) PIC-T/S (1000@$6) $25,000 $6,000 25-Nov Cash (4000 $20) PIC-T/S Retained Eamings Treasury Stock $80,000 $6,000 $14,000 $100,000 2) Sherman System Revised Statement of Stockholders' Equity October 11 Common Stock $10 Par 72,00 $720,000 authorized and issued 65,000 outstanding PICEP-CS $216,000 Retained Earnings $864,000 Total $1,800,000 Treasury stock $125.000 Total Stockholders' Equity $1,675,000 ANSWER Amos Company Statement of Retained Earnings For Year Ended Retained earnings 1/1/17 Prior period adjustment Retained earnings as adj Net Income Cash dividends Retained earnings 12/31/17 $1,375.000 $60,000 $1,315,000 $126,000 S43,000 $1,398,000 Net Income Pret. Dividend Avail.to Com. No of Com Sh Earnings p/s $2.700,000 $388,020 $2.311.980 678000 $3.41 ANSWER ANSWER 13-13 Net Income $960,000 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 company's 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 25 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, 550,000. 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 company's 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 company's basic EPS for 2017.) 13-14 Compute price earnings ratio (P/E Ratio) company listed below: Company Price/Earnings Ratio (P/E Ratio) Earnings Per Share $11.00 $23.00 $4.50 $25.00 Market Value Per Share $176.40 $96.00 $93.75 13-9 Common 80,000 sh $5 par 71/2% preferred, (80,000@$5=$400,000 .075-$30,000) 200,000 sh $1 par common Cumulative Preferred 2015 Divide $20,000 $20,000 2016 Divide $28,000 Due 2015 $10,000 Bal 2016 $18.000 2017 Divier $200.000 Due 2016 $12.000 Due 2017 $30,000 2018 Divide $350,000 $30,000 Total $120,000 Total Combined 13-10 11-Oct Treasury Stock(5000@$25) Cash $158.000 $320,000 $478.000 $598,000 $125,000 $125,000 $31,000 1-Nov Cash (1000 @ $31) T/S (1000@$25) PIC-T/S (1000@$6) $25,000 $6,000 25-Nov Cash (4000 $20) PIC-T/S Retained Eamings Treasury Stock $80,000 $6,000 $14,000 $100,000 2) Sherman System Revised Statement of Stockholders' Equity October 11 Common Stock $10 Par 72,00 $720,000 authorized and issued 65,000 outstanding PICEP-CS $216,000 Retained Earnings $864,000 Total $1,800,000 Treasury stock $125.000 Total Stockholders' Equity $1,675,000 ANSWER Amos Company Statement of Retained Earnings For Year Ended Retained earnings 1/1/17 Prior period adjustment Retained earnings as adj Net Income Cash dividends Retained earnings 12/31/17 $1,375.000 $60,000 $1,315,000 $126,000 S43,000 $1,398,000 Net Income Pret. Dividend Avail.to Com. No of Com Sh Earnings p/s $2.700,000 $388,020 $2.311.980 678000 $3.41 ANSWER ANSWER 13-13 Net Income $960,000