Case A The charter for Rogers, Incorporated, authorized the following stock: Common stock, $10 par value, 122,000 shares authorized Preferred stock (noncumulative), 8 percent, $7 par value, 5,900 shares authorized The company sold 49,500 shares of common stock and 4,900 shares of preferred stock. During the year, the following selected transactions were completed in the order given: Required: 1. Rogers declared and paid dividends in the amount of $29,000. How much was paid to the holders of preferred stock? How much was paid to the common stockholders? 2. Rogers repurchased 6,900 shares of common stock. After this transaction, how many shares of common stock were outstanding? 3. Provide the journal entry if Rogers sold 4,800 shares of treasury stock for $30 per share. The treasury stock was repurchased at $25 per share. Case B Ospry, Inc., has working capital in the amount of $1,050,000. Required: For each of the following transactions, determine whether working capital will increase, decrease, or remain the same. 1. Paid accounts payable in the amount of $28,000. 2. Recorded rent payable in the amount of $31,000. 3. Collected $6,800 in accounts receivable. 4. Purchased $38,000 of new inventory for cash. Case C James Corporation is planning to issue $1,080,000 worth of bonds with a coupon rate of 6 percent. The bonds mature in 10 years and pay interest annually. All of the bonds were sold on January 1 of this year. Required: 1. Assume market (yield) rate, 6 percent. Compute the issue (sale) price on January 1 of this year. 2. Assume market (yield) rate, 5 percent. Compute the issue (sale) price on January 1 of this year.

3. Assume market (yield) rate, 4 percent. Compute the issue (sale) price on January 1 of this year. Case D Miller Bikes is a national chain of upscale bicycle shops. The company has followed a successful strategy of locating near major universities. Miller has the opportunity to expand into several new markets but must raise additional capital. The company has engaged in the following transactions: Issued 45,500 additional shares of common stock. The stock has a $1 par value. The shares sold for $30 per share. Issued bonds. These bonds have a face value of $1,050,000 and a coupon rate of 15 percent. The bonds mature in 10 years and pay interest semiannually. When the bonds were issued, the annual market rate of interest was 7 percent. Required: 1. Record the sale of the bonds. 2. Record the issuance of the stock.