http://media.pearsoncmg.com/pls/products/coco/accounting_2/1256899836/assignments/pdfs/2009_amazon_financial_statement.pdf The link is for the 2009 Amazon Financial statement for the last questions for 1.2

Accounting 2 Handouts Assignment 1.1 Handout 1. Due to the recent hamburger meat recalls, Bob's Burger House is considering incorporating. Requirement Which advantage of incorporating will help protect Bob's personal assets in the event the restaurant is sued? 2. Stockholders' equity may arise from several sources. Requirements R1. Identify the two primary sources of stockholders' equity. R2. Which source would be considered to be \"internally\" generated? 3. Maine Corporation has two classes of stock: Common, $3 par; Preferred, $30 par. Requirement R1. Journalize Maine's issuance of: a. 1,000 shares of common stock for $9 per share. b. 1,000 shares of preferred stock for a total of $30,000. 4. WESIT issued common stock and received $32,000,000. The par value of the WESIT stock was only $32,000. Requirement Is the excess amount of $31,968,000 a profit to WESIT? Does the excess affect net income? If not, what was it? 5. Rainbowpages.com issued stock during 2010 and reported the following on its balance sheet at December 31, 2010: Requirement Journalize the company's issuance of the stock for cash. Accounting 2 Assignment Handout 2011 Pearson Education Page 1 of1 5 2/9/2016 Accounting 2 Handouts 6. Valleyview Corporation reported the following accounts: Requirement Prepare the stockholders' equity section of the Valleyview's balance sheet. 7. The data for Tamara's Tax Service, Inc., for the year ended December 31, 2010, follows: Requirement Journalize the required closing entries for the year. 8. Greentea Company earned net income of $800,000 during the year ended December 31, 2010. On December 15, Greentea declared the annual cash dividend on its 2% preferred stock (par value, $110,000) and a $1.00 per share cash dividend on its common stock (65,000 shares). Greentea then paid the dividends on January 4, 2011. Requirements R1. Journalize for Greentea: a. Declaring the cash dividends on December 15, 2010. b. Paying the cash dividends on January 4, 2011. Accounting 2 Assignment Handout 2011 Pearson Education Page 2 of2 5 2/9/2016 Accounting 2 Handouts 9. Platinum Trust has the following stockholders' equity: Requirements R1. Is Platinum's preferred stock cumulative or noncumulative? How can you tell? R2. Platinum declares cash dividends of $15,000 for 2010. How much of the dividends goes to preferred? How much goes to common? R3. Platinum passed the preferred dividend in 2011 and 2012. In 2013 the company declares cash dividends of $25,000. How much of the dividend goes to preferred? How much goes to common? 10. Golden Trust has the following stockholders' equity: Golden has not declared preferred dividends for five years (including the current year). Requirement Compute the book value per share of Golden's preferred and common stock. Accounting 2 Assignment Handout 2011 Pearson Education Page 3 of3 5 2/9/2016 Accounting 2 Handouts 11. Boga's 2011 financial statements reported the following itemswith 2010 figures given for comparison (adapted, in millions): Requirement Compute Boga's rate of return on total assets and rate of return on common stockholders' equity for 2011. Do these rates of return look high or low? 12. Foxey Flowers had income before income tax of $85,000 and taxable income of $75,000 for 2010, the company's first year of operations. The income tax rate is 35%. Requirements R1. Make the entry to record Foxey's income taxes for 2010. R2. Show what Foxey Flowers will report on its 2010 income statement, starting with income before income tax. 13. The balance sheet of Matt Taft Wireless, Inc., reported the following: Accounting 2 Assignment Handout 2011 Pearson Education Page 4 of4 5 2/9/2016 Accounting 2 Handouts (no dividends in arrears). Requirement Compute the book value per share of the common stock. 14. The balance sheet of Mitt Trull, Inc., reported the following: Requirement Compute the book value per share of Trull's preferred and common stock if three years' preferred dividends (including dividends for the current year) are in arrears. Accounting 2 Assignment Handout 2011 Pearson Education Page 5 of5 5 2/9/2016 Accounting 2 Handouts Assignment 1.2 Handout 1. Tree Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30, 2011: Requirements R1. Identify the different issues of stock that Tree has outstanding. R2. What is the par value per share of Tree's preferred stock? R3. Make two summary journal entries to record issuance of all the Tree stock for cash. Explanations are not required. R4. No preferred dividends are in arrears. Journalize the declaration of a $400,000 dividend at June 30, 2011. Use separate Dividends payable accounts for Preferred and Common. An explanation is not required. 2. C-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes C-Mobile to issue 60,000 shares of 10%, $150-par preferred stock, and 140,000 shares of no-par common stock. C-Mobile completed the following transactions: Requirements R1. Record the transactions in the general journal. R2. Prepare the stockholders' equity section of the C-Mobile Wireless balance sheet at December 31. The ending balance of Retained Earnings is $90,000. Accounting 2 Assignment Handout 2011 Pearson Education Page 1 of1 3 2/28/2016 Accounting 2 Handouts 3. Hip Skincare has 5,000 shares of 5%, $15 par value preferred stock and 80,000 shares of $2.25 par common stock outstanding. During a three-year period, Hip declared and paid cash dividends as follows: 2010, $2,000; 2011, $15,000; and 2012, $20,000. Requirements R1. Compute the total dividends to preferred and to common for each of the three years if a. preferred is noncumulative. b. preferred is cumulative. R2. For Requirement R1b. journalize the declaration of the 2011 dividends on December 22, 2011, and payment on January 14, 2012. Use separate Dividends payable accounts for Preferred and Common. 4. The following accounts and December 31, 2010, balances of Florida Optical Corporation are arranged in no particular order. Requirements R1. Prepare the company's classified balance sheet in account format at December 31, 2010. R2. Compute Florida Optical's rate of return on total assets and rate of return on common stockholders' equity for the year ended December 31, 2010. R3. Do these rates of return suggest strength or weakness? Give your reasoning. Financial Statement Case Refer to the 2009 Amazon.com Financial Statements handout. Answer the following questions about Amazon's stock. The Accumulated Deficit account is Retained earnings with a negative balance. Requirements Accounting 2 Assignment Handout 2011 Pearson Education Page 2 of2 3 2/28/2016 Accounting 2 Handouts R1. How much of Amazon.com's preferred stock was outstanding at December 31, 2009? How can you tell? R2. Examine Amazon.com's balance sheet. Which stockholders' equity account increased the most during 2009? What caused this increase? The Consolidated Statements of Stockholders' Equity helps to answer this question. R3. Use par value and the number of shares to show how to compute the balances in Amazon.com's Common stock account at the end of both 2009 and 2008, as shown in the balance sheet. R4. Would it be meaningful to compute Amazon.com's return on equity? Explain your answer. Accounting 2 Assignment Handout 2011 Pearson Education Page 3 of3 3 2/28/2016