Preferred Stock Dividens, Stock Dividens, and Compensated Absences

ACC 302 Chapter 13 -Preferred Stock Dividends, Stock Dividends, and Compensated Absences January 17,2019 Each Part is Independent. A A company, which began operations on January 1, 2016, had the following contributed capital accounts at 12/31/18 Contributed capital Preferred stock, $100 par value, 6% cumulative, 200,000 shares $ 5,000,000 authorized, 50,000 shares issued and outstanding Common stock, $5 par value, 800,000 shares authorized, 120,000 shares issued and outstanding Additional paid-in capital in excess of par-preferred stock Additional paid-in capital in excess of par-common stock 600,000 1,550,000 5.880,000 13.030.000 The company has not declared a dividend since it began operations. $ 1) What would be the preferred stock dividends in arrears at December 31, 20187 2) What amount would the company show as Dividends Payable on its preferred stock at 12/31/18? $ B. At December 31, 2017, the Palms Company had the following related to its $2 par common stock: 250,000 shares authorized and 70,000 shares issued and outstanding. The company did not have any changes in its common stock until December 22, 2018, when it declared a 5% common stock dividend. The stock will be distributed on January 18, 2019, to stockholders of record on December 30, 2018. The stock's market value per share at the time of the stock dividend declaration was $56 per share. 1) How many additional shares of common stock will result from the stock dividend?shares 2) What amount would the company show on its 12/31/18 balance sheet as a current liability related to the stock dividend? $ C. 1) Prepare the adjusting journal entry for Brief Exercise 13-7 on page 692 2) Now assume that in 2018 all of the employees used their vacation days from 2017. The employees earned $575 per week in 2018. Prepare the cumulative journal entry in 2018 to record the use of the vacation from 2017