P13-2

Required: pare journal entries for each for each of the the m 1.800 .-1 P13-1 12501 At December 31, 200 Common stock, $10 na During 2005, the follow April 1 Issue May 1 te was $42.sued a 10% 2004. Volleyballs'R' Us Corp. reported the followingin ck, $10 par value, 200.000 shares wed and 5. the following equity transactions occue Issued 200000 shares of common oc h Declared and issued a 10% stock dividend price on the issue was $42 per share. Santember 1 Declared and issued a 4-forstock Purchased 50,000 shares at 545 per share of commen them in the treasury. e 1.2000 hon stock October 1 00 for are of c e Required: a. Prepare journal entries where re h Complete the following table. Indicate the ima * $28 urpal entries where required for all 2005 transactions following table. Indicate the impact of each of the transactions on the pany's assets, liabilities, and equity. Use I for Increase, D for Decrease in NE for No effect. Assets Liabilities Equity 'Transaction April 1 May 1 September 1 October 1 + S Determine the number of shares that will be outstanding on December 31, 2005 P13-2 The following was extracted from the balance of Bledsoe Corp. at December 31, 2004: Stockholders' Equity (amounts in thousands, except share amounts) 8% Cumulative preferred stock, $100 par, 500,000 shares authorized, 300,000 shares issued $ 30,000 Common stock, $10 par value, 2,000,000 15,000 shares authorized, 1,500,000 shares issued 40,000 Additional paid-in capital 58,000 Retained earnings $143,000 (1,500 $141,500 Less common treasury shares, 300,000 shares at cost Total stockholders' equity EXERCISES, PROBLEMS, AND CASES TO ACCOMPANY FINANCIAL ACCOUNTING winning of 2004 and of a total dividend be os to be able to payt if Bledsoe declares me when the stock is Required: Assume Bledsoe issued the cumulative preferred at the begi clared total dividends of $2,000,000 in 2004. How much of a preferred and common) would Bledsoe need to declare in 2005 common shareholders a $2 per share dividend? heffect on the following balance sheet items if Bledsoe 25% common stock dividend on the outstanding shares at a time w selling at $60 per share? Common stock Additional paid-in capital Retained earnings Total stockholders' equity c. What would be the effect on the following balance sheet items if Bledsoe de 2-for-1 stock split at a time when the stock is selling at $60 per share? Common stock Common stock - ELS Additional paid-in capital Retained earnings Treasury stock Total stockholders' equity ms if Bledsoe declares a P13-3 Lyons, Inc., had 1,000,000 authorized shares of $10 par value common stock, of which 400,000 shares were issued and outstanding. The stockholders' equity accounts at Decem ber 31, 2004, had the following credit balances: Common stock $4,000,000 Additional paid in capital-common 840,000 Retained earnings 3,800,000 Accumulated other comprehensive income 120,000 Transactions during 2005 and other information relating to the stockholders' equity ad counts were as follows: a. On January 8, 2005, Lyons issued 30,000 shares of $100 par, 7% cumulative preferre stock at $105 per share. Lyons had 30,000 authorized shares of preferred stock. b. On March 1, 2005, Lyons reacquired 10,000 shares of its common stock at a price $12 per share. Lyons uses the cost method of accounting for treasury stock. c. On April 8, 2005, Lyons issued 50,000 shares of previously unissued common ste for $600,000. d. On November 10, 2005, Lyons sold 4,000 shares of treasury stoel e. Net income for thos