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The charter of Vista West Corporation specifies that it is authorized to issue 209,000 shares of common stock. Since the company was incorporated, it has sold a total of 149,000 shares (at $16 per share) to the public. It has bought back a total of 18,000. The par value of the stock is $5. When the stock was bought back from the public, the market price was $24.

1.

value: 10.00 points

Required information

Required:

1. Determine the authorized shares.

References

eBook & Resources

WorksheetLearning Objective: 11-01 Explain the role of stock in the capital structure of a corporation.

Difficulty: 1 EasyLearning Objective: 11-03 Describe the characteristics of common stock and report common stock transactions.

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2.

value: 10.00 points

Required information

2. Determine the issued shares.

References

eBook & Resources

WorksheetLearning Objective: 11-01 Explain the role of stock in the capital structure of a corporation.

Difficulty: 1 EasyLearning Objective: 11-03 Describe the characteristics of common stock and report common stock transactions.

Check my work

3.

value: 10.00 points

Required information

3. Determine the outstanding shares.

During the year the following selected transactions affecting stockholders' equity occurred for Orlando Corporation:

a.	Apr.	1		Repurchased 350 shares of the company's own common stock at $23 cash per share.
b.	Jun.	14		Sold 120 shares of the shares purchased on April 1 for $28 cash per share.
c.	Sept.	1		Sold 110 shares of the shares purchased on April 1 for $18 cash per share.

Required:

1. Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at the end of the current year:

Common stock, $12 par value, 32,000 shares outstanding

Preferred stock, 9 percent, $10 par value, 6,000 shares outstanding

Retained earnings, $216,000

On September 1 of the current year, the board of directors was considering the distribution of an $73,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under two independent assumptions (show computations):

a. The preferred stock is noncumulative.

b. The preferred stock is cumulative.

Required:

1. Determine the total and per share amounts that would be paid to the common stockholders and the preferred stockholders under the two independent assumptions. (Round "per share" to 2 decimal places.)

A recent annual report for Malestrom Inc., disclosed that the company declared and paid dividends on common stock in the amount of $1.50 per share. During the year, Malestrom had 1,014,000,000 authorized shares of common stock and 191,340,000 issued shares. There is no treasury stock.

Required:

Assume Malestrom declared the entire dividend ($1.50 per share) on February 20 and subsequently paid the dividend on March 1. Prepare a journal entry to record the declaration and payment of dividends. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).)

On July 1, Davidson Corporation had the following capital structure:

Common stock ( $4 par value)	$	696,000
Additional paid-in capital		1,060,000
Retained earnings		890,000
Treasury stock		0

Required:

Complete the table below for each of the two following independent cases: (Round "Par value per share" answers to 2 decimal places.)

Case 1: The board of directors declared and issued a 50 percent stock dividend when the stock was selling at $6 per share.

Case 2: The board of directors announced a 6-for-5 stock split (i.e., a 20 percent increase in the number of shares). The market price prior to the split was $6 per share.

Chicago Company reported the following information at the end of the current year:

Common stock ( $10 par value; 43,000 shares outstanding)	$	430,000
Preferred stock, 10% ( $10 par value; 8,800 shares outstanding)		88,000
Retained earnings		285,000

The board of directors is considering the distribution of a cash dividend to the two groups of stockholders. No dividends were declared during the previous two years. Three independent cases are assumed:

Case A: The preferred stock is noncumulative; the total amount of dividends is $35,000.

Case B: The preferred stock is cumulative; the total amount of dividends is $26,400.

Case C: The preferred stock is cumulative; the total amount of all dividends is $90,800 .

Required:

1. Compute the amount of dividends, in total and per share, that would be payable to each class of stockholders for each case. (Round "Dividends per Share" to 2 decimal places.)