ACCT:2100 Introduction to Financial Accounting Fall 2016

Chapter 11 Take-Home Quiz

Following is the shareholders equity section of Webster Corporation balance sheet at December 31, 2014:

Shareholders Equity

6.5% Cumulative preferred stock - $50 par value

Authorized: 2,000

Issued and outstanding: 1,200 $ 60,000

Common stock -$1 par value

Authorized: 200,000

Issued: 50,000 shares $ 50,000

Additional paid-in capital $ 245,800

Retained earnings $ 247,500

Treasury shares (16,800)

Total shareholders equity $ 586,500

The following transactions occurred during 2015:

1/15/15 Issued 4,000 shares of commons stock for $120,000.

5/15/15 Declared a common stock dividend of $.10 per share.

6/03/15 Paid previously declared dividend.

6/15/15 Repurchased 500 treasury shares for $14,500.

9/01/15 Declared and paid $2,000 of preferred stock dividends.

9/17/15 Repurchased 400 treasury shares for $12,400.

10/20/15 Declared and distributed a 5% stock dividend on commons shares outstanding when the market value of the stock was $31 per share.

11/28/15 Sold 700 treasury shares for $30 a share. Webster uses the FIFO method to account for treasury shares.

12/31/15 Earned $22,950 for 2015.

1. Prepare the 2015 statement of shareholders equity for Webster Corporation.

2. Prepare the financing section of Webster Corporations 2015 statement of cash flow.

3. Calculate basic earnings-per-share for 2015.