ACCOUNTING 301: CHAPTERS 11 AND 12: PROBLEMS: YOU HAVE FOUR PROBLEMS!!

PROBLEM 1:

Samson Company had the following transactions.

1. Issued 4,000 shares of $100 par preferred stock at $107 for cash.

2. Issued 8,000 share of common stock with a par value of $10 for $110,000.

3. Purchased 500 shares of treasury common stock for $12,000.

Instructions

Prepare the journal entries to record the above stock transactions.

PROBLEM 2:

Lindy Corporation has 1,000,000 authorized shares of $20 par value common stock. As of June 30, 2012, there were 600,000 shares issued and outstanding. On June 30, 2012, the board of directors declared a $0.30 per share cash dividend to be paid on August 1, 2012.

Instructions

Prepare the necessary journal entries to be recorded on (a) the date of declaration, (b) the date of record, and (c) the date of payment.

PROBLEM 3:

Miles Co. had these transactions during the current period.

June 12 Issued 60,000 shares of $3 stated value common stock for cash of $250,000.

July 11 Issued 2,000 shares of $100 par value preferred stock for cash at $106 per share.

Nov. 28 Purchased 2,000 shares of treasury stock for $10,000.

Instructions

Prepare the journal entries for the preceding transactions.

PROBLEM 4:

The following information is available for Colaw Corporation for the year ended December 31, 2012.

Beginning cash balance	$ 35,000
Accounts payable decrease	3,200
Depreciation expense	152,000
Accounts receivable increase	8,200
Inventory increase	13,000
Net income	269,100
Cash received for sale of land at book value	35,000
Sales	747,000
Cash dividends paid	12,000
Income tax payable increase	4,700
Cash used to purchase building	144,000
Cash used to purchase treasury stock	32,000
Cash received from issuing bonds	130,000

Instructions

Prepare a statement of cash flows using the indirect method.