8 Accounting problems, simple Accounting 101 problems

5/13/2016 Chapter 11 Exercises Katie Byrd Acct 211: ACCT 211 - Spring D 2016 24 Chapter 11 Exercises 1. instructions | help value: 1.25 points Rodriguez Corporation issues 17,000 shares of its common stock for $201,900 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. 2. 3. The stock has a $10 par value. The stock has neither par nor stated value. The stock has a $5 stated value. view transaction list view general journal Journal Entry Worksheet 1 2 3 Record the issue of 17,000 shares of $10 par value common stock for $201,900 cash. Transactio n 1 General Journal Debit Credit *Enter debits before credits done clear entry record entry rev: 01_22_2014_QC_43873 Hints References eBook & Resources Hint #1 Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx?_=0.2100783343351208_1463171999191 1/1 5/13/2016 Chapter 11 Exercises Katie Byrd Acct 211: ACCT 211 - Spring D 2016 24 Chapter 11 Exercises 2. instructions | help value: 1.25 points Prepare journal entries to record the following four separate issuances of stock. 1. A corporation issued 3,000 shares of $30 par value common stock for $108,000 cash. 2. A corporation issued 1,500 shares of nopar common stock to its promoters in exchange for their efforts, estimated to be worth $59,000. The stock has a $4 per share stated value. 3. A corporation issued 1,500 shares of nopar common stock to its promoters in exchange for their efforts, estimated to be worth $59,000. The stock has no stated value. 4. A corporation issued 750 shares of $50 par value preferred stock for $96,500 cash. view transaction list view general journal Journal Entry Worksheet 1 2 3 4 Record the issue of 3,000 shares of $30 par value common stock for $108,000 cash. Transaction General Journal Debit Credit 1 *Enter debits before credits done clear entry record entry rev: 08_24_2015_QC_CS21218, 10_02_2015_QC_CS28085, 10_13_2015_QC_CS29121 Hints References eBook & Resources Hint #1 Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 1/1 5/13/2016 Chapter 11 Exercises Katie Byrd Acct 211: ACCT 211 - Spring D 2016 24 Chapter 11 Exercises 3. instructions | help value: 1.25 points Sudoku Company issues 33,000 shares of $9 par value common stock in exchange for land and a building. The land is valued at $245,000 and the building at $360,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building. view transaction list view general journal Journal Entry Worksheet 1 Record the issue of 33,000 shares of $9 par value common stock in exchange for land valued at $245,000 and a building valued at $360,000. Transaction General Journal Debit Credit 1 *Enter debits before credits done clear entry record entry rev: 01_23_2014_QC_43873 Hints References eBook & Resources Hint #1 Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 1/1 5/13/2016 Chapter 11 Exercises Acct 211: ACCT 211 - Spring D 2016 24 Chapter 11 Exercises 4. Katie Byrd instructions | help value: 1.25 points On June 30, 2015, Sharper Corporation's common stock is priced at $25.00 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows. Common stock$4 par value, 75,000 shares authorized, 30,000 shares issued and outstanding Paidin capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 120,000 100,000 220,000 $ 440,000 1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock's par value. Answer these questions about stockholders' equity as it exists after issuing the new shares. a.,b.& c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. Impact of Before Stock After Stock Stock Dividend Stock Dividend Dividend Dividend Common stock Paid in capital in excess of par value Total contributed capital Retained Earnings Total Stockholders' Equity Number of common shares outstanding 2. Assume that the company implements a 2for1 stock split instead of the stock dividend in part 1. Answer these questions about stockholders' equity as it exists after issuing the new shares. a.,b.& c. Complete the below table to calculate the retained earnings balance, total stockholders' equity and number of outstanding shares. http://ezto.mheducation.com/hm.tpx 1/2 5/13/2016 Chapter 11 Exercises Before Stock Split Stock Split Impact of Stock Split After Stock Split Common stock Paid in capital in excess of par value Total contributed capital Retained Earnings Total Stockholders' Equity Number of common shares outstanding Hints References eBook & Resources Hint #1 Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 2/2 5/13/2016 Chapter 11 Exercises Katie Byrd Acct 211: ACCT 211 - Spring D 2016 24 Chapter 11 Exercises 5. instructions | help value: 1.25 points York's outstanding stock consists of 30,000 shares of noncumulative 7.40% preferred stock with a $10 par value and also 75,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends: 2015 2016 2017 2018 $ 18,000 19,200 120,000 195,000 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. (Round "Dividend Rate (%)" to 1 decimal place and "Dividend per Preferred Share" to 2 decimal places.) Par Value per Dividend per Number of Preferred Preferred Dividend Rate Preferred Preferred Dividend Share Share Shares Annual Preferred Dividend: Total Cash Dividend Paid 2015 $ Paid to Common Dividends in Arrears at yearend 18,000 2016 19,200 2017 120,000 2018 Paid to Preferred 195,000 $ Total: Hints References 352,200 eBook & Resources Hint #1 Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 1/1 5/13/2016 Chapter 11 Exercises Katie Byrd Acct 211: ACCT 211 - Spring D 2016 24 Chapter 11 Exercises 6. instructions | help value: 1.25 points York's outstanding stock consists of 58,000 shares of cumulative 8.50% preferred stock with a $10 par value and also 145,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends. 2015 2016 2017 2018 $ 39,000 44,050 84,300 119,300 Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 2 decimal places.) Par Value per Dividend per Number of Preferred Preferred Dividend Rate Preferred Preferred Dividend Share Share Shares Annual Preferred Dividend: Total Cash Dividend Paid 2015 $ 2016 Paid to Preferred Paid to Common Dividends in Arrears at yearend 39,000 44,050 2017 84,300 2018 119,300 $ Total Hints References 286,650 eBook & Resources Hint #1 Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 1/1 5/13/2016 Chapter 11 Exercises Katie Byrd Acct 211: ACCT 211 - Spring D 2016 24 Chapter 11 Exercises 7. instructions | help value: 1.25 points On October 10, the stockholders' equity of Sherman Systems appears as follows: Common stock-$10 par value, 80,000 shares authorized, issued, and outstanding Paidin capital in excess of par value, common stock Retained earnings $ 800,000 256,000 928,000 $ 1,984,000 Total stockholders' equity 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,800 shares of its own common stock at $33 per share on October 11. b. Sold 1,200 treasury shares on November 1 for $39 cash per share. c. Sold all remaining treasury shares on November 25 for $28 cash per share. view transaction list view general journal Journal Entry Worksheet 1 2 3 Record the purchase of 5,800 shares of its own common stock for $33 cash per share. Transaction General Journal Debit Credit a. *Enter debits before credits done clear entry record entry 2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase. http://ezto.mheducation.com/hm.tpx 1/2 5/13/2016 Chapter 11 Exercises Revised Equity Section of Balance Sheet After October 11 Total contributed capital Total Total stockholders' equity References Worksheet eBook & Resources Difficulty: 2 Medium Learning Objective: 11P3 Record purchases and sales of treasury stock and the retirement of stock. Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 2/2 5/13/2016 Chapter 11 Exercises Acct 211: ACCT 211 - Spring D 2016 24 Chapter 11 Exercises 8. Katie Byrd instructions | help value: 1.25 points The following information is available for Amos Company for the year ended December 31, 2015. a. Balance of retained earnings, December 31, 2014, prior to discovery of error, $856,000. b. Cash dividends declared and paid during 2015, $29,000. c. It neglected to record 2013 depreciation expense of $53,600, which is net of $7,400 in tax benefits. d. The company earned $222,000 in 2015 net income. Prepare a 2015 statement of retained earnings for Amos Company. (Amounts to be deducted should be indicated with a minus sign.) AMOS COMPANY Statement of Retained Earnings For Year Ended December 31, 2015 Prior period adjustment Hints References eBook & Resources Hint #1 Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 1/1