1.During 2004 through 2007, Best Corporation had the following issuances of stock outstanding for the entire period:

5,000 shares of 10%, $50 par, preferred stock

50,000 shares of $10 par common stock

Cash dividends declared by the board of directors during 2004 to 2007 were as follows:

2004$-0-

2005$40,000

2006$50,000

2007$75,000

Compute the amount of total dividends payable to each class of stock during 2004 to 2007 by treating the preferred stock as:

a)cumulative

b)non-cumulative

Use the charts below for your answer and be sure to show all of your calculations to receive full credit.

a)cumulative

Year

Total PreferredDividend

Total CommonDividend

Total

2004

2005

2006

2007

b)non-cumulative

Year

Total PreferredDividend

Total CommonDividend

Total

2004

2005

2006

2007

Financial Accounting

Final Exam

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2.Daniels Corporation reports the following transactions for 2012:

Jan. 10Sold 5,000 shares of 9% non-cumulative $50 par, preferred stock for $85 per share.

Feb. 19Sold 3,000 shares of $10 par common stock for $12 per share.

Oct. 12Declared a 15% stock dividend on the common stock.The current market price of the common stock is $15 per share.Daniels "Corporation has 100,000 shares of common stock outstanding on October 12.

Nov.15Distributed the stock dividend declared on October 12.

Dec. 15Declared the annual dividend required on the preferred stock and a $.50 per share dividend on the common stock.Daniels Corporation currently has 20,000 shares of preferred stock outstanding.

Prepare journal entries for the above transactions.Use the explanation portion of each journal entry to show your work.

Date

Accounts

Debit

Credit

Financial Accounting

Final Exam

Page3

3.Anderson Corporation reports the following Stockholders' Equity on its Balance Sheet as of December 31, 2012:

Stockholders' Equity

Preferred 5% Stock, $50 par (100,000 shares authorized,

25,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . $1,250,000

Paid-In Capital in Excess of Par - Preferred Stock . . . . . .250,000$1,500,000

Common Stock, $1 par (1,000,000 shares authorized,

150,000 shares issued). . . . . . . . . . . . . . . . . . . . . .150,000

Paid-In Capital in Excess of Par - Common Stock . . . . . .100,000250,000$1,750,000

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,550,000

Total Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . . .$4,300,000

The Board of Directors for Anderson Corporation declared a 3-for-1 common stock split. Below you are to correctly rewrite the Stockholders' Equity portion of Anderson Corporation's Balance Sheet after the stock split.

Stockholders' Equity