Week 1 Assignment

Brief Exercise 15-9

Brief Exercise 15-12

Exercise 15-6

Exercise 15-7

Exercise 15-10

Exercise 15-12

Exercise 15-17

Brief Exercise 15-9 Vaughn Corporation has outstanding 22,000 shares of $5 par value common stock. On August 1, 2017, Vaughn reacquired 180 shares at $80 per share. On November 1, Vaughn reissued the 180 shares at $71 per share. Vaughn had no previous treasury stock transactions. Prepare Vaughn's journal entries to record these transactions using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 8/1/17 11/1/17 Brief Exercise 15-12 Sheffield Mining Company declared, on April 20, a dividend of $521,000 payable on June 1. Of this amount, $123,000 is a return of capital. Prepare the April 20 and June 1 entries for Sheffield. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Apr. 20 June 1 Account Titles and Explanation Debit Credit Exercise 15-6 Larkspur Corporation is authorized to issue 45,000 shares of $5 par value common stock. During 2017, Larkspur took part in the following selected transactions. 1 Issued 4,500 shares of stock at $48 per share, less costs related to the issuance of the stock . totaling $6,300. 2 Issued 1,100 shares of stock for land appraised at $45,000. The stock was actively traded on a . national stock exchange at approximately $49 per share on the date of issuance. 3 Purchased 530 shares of treasury stock at $46 per share. The treasury shares purchased were . issued in 2013 at $43 per share. (a) Prepare the journal entry to record item 1. (b) Prepare the journal entry to record item 2. (c) Prepare the journal entry to record item 3 using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No Account Titles and . Explanation Debit Credit (a) (b) (c) Exercise 15-7 Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then entered into the following transactions. 1 . Purchased 5,000 treasury shares at $45 per share. 2 . Resold 2,000 of the treasury shares at $49 per share. 3 . Resold 500 of the treasury shares at $40 per share. Indicate the effect each of the three transactions has on the financial statement categories listed in the table below, assuming Joe Dumars Company uses the cost method. # Assets Liabilities Stockholders' Equity Paid-in Capital Retained Earnings Net Income 1. 2. 3. Exercise 15-10 For a recent 2-year period, the balance sheet of Splish Company showed the following stockholders' equity data at December 31 (in millions). 2017 Additional paid-in capital $ 900 Common stock 2016 $ 810 663 654 Retained earnings 7,200 5,310 Treasury stock 1,764 896 $6,999 $5,878 Common stock shares issued 221 218 Common stock shares authorized 500 500 36 28 Total stockholders' equity Treasury stock shares (a) Answer the following questions. (1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.) $ Par value of common stock (2) What is the cost per share of treasury stock at December 31, 2017, and at December 31, 2016? December 31, 2017 December 31, 2016 Cost per share of Treasury stock $ $ (b) Prepare the stockholders' equity section at December 31, 2017. (Enter account name only and do not provide descriptive information.) Splish Company Balance Sheet (in millions of dollars) (Partial) $ : $ Exercise 15-12 Headland Corporation has 12.40 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 74 cents per share cash dividend to stockholders of record as of June 14, payable June 30. Prepare the journal entries for each of the dates above assuming the dividend represents a distribution of earnings. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit How would the entries differ if the dividend were a liquidating dividend? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Exercise 15-17 Carla Corporation's post-closing trial balance at December 31, 2017, is shown as follows. CARLA CORPORATION POST-CLOSING TRIAL BALANCE DECEMBER 31, 2017 Dr. Cr. Accounts payable $ 416,000 Accounts receivable $ 497,000 Accumulated depreciationbuildings 178,000 Additional paid-in capital in excess of parcommon 1,267,000 From treasury stock 173,000 Allowance for doubtful accounts 30,000 Bonds payable 274,000 Buildings 1,404,000 Cash 181,000 Common stock ($1 par) 188,000 Dividends payable (preferred stockcash) 4,000 Inventory 612,000 Land 429,000 Preferred stock ($50 par) 500,000 Prepaid expenses 40,000 Retained earnings 315,000 Treasury stock (common at cost) 182,000 Totals $3,345,000 $3,345,000 At December 31, 2017, Carla had the following number of common and preferred shares. Common Preferred Authorized 564,000 60,000 Issued 188,000 10,000 Outstanding 179,000 10,000 The dividends on preferred stock are $4 cumulative. In addition, the preferred stock has a preference in liquidation of $50 per share. Prepare the stockholders' equity section of Carla's balance sheet at December 31, 2017. (Enter account name only and do not provide descriptive information.) CARLA CORPORATION Stockholders' Equity $ : $