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This is the assignment key of chapter 13.
Typology: Assignments
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Year 1 Year 2 Year 3 Amount distributed............................... $ 15,000 $ 5,000 $ 62, Preferred dividend (5,000 shares)....... 8,000 5,000 11,000* Common dividend (10,000 shares)...... $ 7,000 $ 0 $ 51, *(3,000 + 8,000) Dividends per share: Preferred stock.............................. $1.60 $1.00 $2. Common stock.............................. $0.70 None $5.
Year 1 Year 2 Year 3 Amount distributed............................... $ 30,000 $6,000 $80, Preferred dividend (10,000 shares)..... 10,000 6,000 14,000* Common dividend (25,000 shares)...... $ 20,000 $$ 00 $66, *($4,000 + $10,000) Dividends per share: Preferred stock.............................. $1.00 $0.60 $1. Common stock.............................. $0.80 None $2.
July 3 Cash....................................................................... 1,125, Common Stock................................................ 1,125, (450,000 shares × $2.50). Sept. 1 Cash....................................................................... 250, Preferred Stock............................................... 250, (10,000 shares × $25). Oct. 30 Cash....................................................................... 225, Preferred Stock............................................... 187, Paid-In Capital in Excess of Par.................... 37,500* *(7,500 shares × $5)
Feb. 13 Stock Dividends (600,000 × 4% × $90)............... 2,160, Stock Dividends Distributable (24,000 × $75) 1,800, Paid-In Capital in Excess of Par— Common Stock ($2,160,000 – $1,800,000).... 360, Mar. 14 No entry required. Apr. 30 Stock Dividends Distributable............................ 1,800, Common Stock................................................ 1,800,
Oct. 3 Treasury Stock (10,000 × $9)............................... 90, Cash.................................................................. 90, Nov. 15 Cash (6,800 × $12)................................................ 81, Treasury Stock (6,800 × $9)........................... 61, Paid-In Capital from Sale of Treasury Stock [6,800 × ($12 – $9)]............... 20, Dec. 22 Cash (3,200 × $7).................................................. 22, Paid-In Capital from Sale of Treasury Stock [3,200 × ($9 – $7)]...................... 6, Treasury Stock (3,200 × $9)........................... 28,
Feb. 1 Treasury Stock (7,500 × $30)............................... 225, Cash.................................................................. 225, Mar. 15 Cash (4,500 × $34)................................................ 153, Treasury Stock (4,500 × $30)......................... 135, Paid-In Capital from Sale of Treasury Stock [4,500 × ($34 – $30)]............. 18, June 2 Cash (3,000 × $28)................................................ 84, Paid-In Capital from Sale of Treasury Stock [3,000 × ($30 – $28)].................. 6, Treasury Stock (3,000 × $30)......................... 90,
Stockholders’ Equity Paid-in capital: Common stock, $75 par (70,000 shares authorized, 63,000 shares issued).................. $ 4,725, Excess of issue price over par............................. 679,000 $ 5,404, From sale of treasury stock.................................. 25, Total paid-in capital......................................... $ 5,429, Retained earnings....................................................... 2,032, Total........................................................................ $ 7,462, Deduct treasury stock (7,500 shares at cost).......... 588, Total stockholders’ equity......................................... $ 6,874,
Stockholders’ Equity Paid-in capital: Common stock, $80 par (60,000 shares authorized, 50,000 shares issued).................. $ 4,000, Excess of issue price over par............................. 630,000 $ 4,630, From sale of treasury stock.................................. 66, Total paid-in capital......................................... $ 4,696, Retained earnings....................................................... 2,220, Total........................................................................ $ 6,916, Deduct treasury stock (4,000 shares at cost).......... 360, Total stockholders’ equity......................................... $ 6,556,
Retained Earnings Statement For the Year Ended October 31, 2010 Retained earnings, November 1, 2009.............................. $ 1,500, Net income........................................................................... $475, Less dividends declared.................................................... 350, Increase in retained earnings............................................. 125, Retained earnings, October 31, 2010................................ $ 1,625,
1st Year 2nd Year 3rd Year 4th Year a. Total dividend declared.................. $ 30,000 $ 42,000 $ 90,000 $ 120, Preferred dividend (current)........... $ 30,000 $ 27,000 $ 45,000 $ 45, Preferred dividend in arrears......... — 15,000 18,000 — b. Total preferred dividends............... $ 30,000 $ 42,000 $ 63,000 $ 45, Preferred shares outstanding........ ÷ 15,000 ÷ 15,000 ÷ 15,000 ÷ 15, Preferred dividend per share......... $ 2.00 $ 2.80 $ 4.20 $ 3. Dividend for common share (a. – b.)............................................. $ — $ — $ 27,000 $ 75, Common shares outstanding......... ÷ 50,000 ÷ 50, Common dividend per share.......... $ 0.54 $ 1.
1st Year 2nd Year 3rd Year 4th Year a. Total dividend declared.................. $ 3,000 $ 4,000 $ 30,000 $ 80, Preferred dividend (current)........... $ 3,000 $ 2,000 $ 5,000 $ 5, Preferred dividend in arrears......... — 2,000 3,000 — b. Total preferred dividends............... $ 3,000 $ 4,000 $ 8,000 $ 5, Preferred shares outstanding........ ÷ 20,000 ÷ 20,000 ÷ 20,000 ÷ 20, Preferred dividend per share......... $ 0.15 $ 0.20 $ 0.40 $ 0. Dividend for common share (a. – b.)............................................. $ — $ — $ 22,000 $ 75, Common shares outstanding......... ÷ 25,000 ÷ 25, Common dividend per share.......... $ 0.88 $ 3.
a. Feb. 10 Cash................................................................ 1,360, Common Stock......................................... 400, Paid-In Capital in Excess of Par— Common Stock......................................... 960, May 9 Cash................................................................ 700, Preferred Stock......................................... 500, Paid-In Capital in Excess of Par— Preferred Stock......................................... 200, b. $2,060,000 ($1,360,000 + $700,000)
a. June 4 Cash................................................................ 3,000, Common Stock......................................... 750, Paid-In Capital in Excess of Stated Value.............................................. 2,250, Oct. 9 Cash................................................................ 2,000, Preferred Stock......................................... 1,875, Paid-In Capital in Excess of Par— Preferred Stock......................................... 125, b. $5,000,000 ($3,000,000 + $2,000,000)
Jan. 30 Land......................................................................... 270, Common Stock................................................. 180, Paid-In Capital in Excess of Par..................... 90,
a. (1) Stock Dividends......................................................... 250,000* Stock Dividends Distributable (2,000 × $100)... 200, Paid-In Capital in Excess of Par— Common Stock..................................................... 50, *[($10,000,000/$100) × 2%] × $ (2) Stock Dividends Distributable.................................. 200, Common Stock..................................................... 200, b. (1) $12,000,000 ($10,000,000 + $2,000,000) (2) $45,000, (3) $57,000,000 ($12,000,000 + $45,000,000) c. (1) $12,250,000 ($12,000,000 + $250,000) (2) $44,750,000 ($45,000,000 – $250,000) (3) $57,000,000 ($12,250,000 + $44,750,000)
a. Mar. 4 Treasury Stock............................................... 450, Cash........................................................... 450, Aug. 7 Cash................................................................ 350, Treasury Stock (3,500 × $90).................. 315, Paid-In Capital from Sale of Treasury Stock......................................... 35, Nov. 29 Cash................................................................ 132, Paid-In Capital from Sale of Treasury Stock............................................... 3, Treasury Stock (1,500 × $90).................. 135, b. $32,000 credit c. Beaverhead Creek may have purchased the stock to support the market price of the stock, to provide shares for resale to employees, or for reissuance to employees as a bonus according to stock purchase agreements.
Stockholders’ Equity Paid-in capital: Preferred 2% stock, $100 par (20,000 shares authorized, 7,500 shares issued).................. $750, Excess of issue price over par....... 90,000 $ 840, Common stock, no par, $5 stated value (250,000 shares author- ized, 80,000 shares issued)....... $400, Excess of issue price over par....... 960,000 1,360, From sale of treasury stock............ 25, Total paid-in capital.................... $2,225,
Stockholders’ Equity Paid-in capital: Common stock, $75 par (40,000 shares authorized, 18,000 shares issued)................ $1,350, Excess of issue price over par....... 108,000 $1,458, From sale of treasury stock............ 12, Total paid-in capital.................... $1,470, Retained earnings................................. 2,950, Total................................................... $4,420, Deduct treasury stock (875 shares at cost)......................... 70, Total stockholders’ equity.................... $4,350,
Stockholders’ Equity Paid-in capital: Preferred 4% stock, $50 par (50,000 shares authorized, 30,000 shares issued)................ $1,500, Excess of issue price over par....... 90,000 $1,590, Common stock, $10 par (200,000 shares authorized 40,000 shares issued)................ $ 400, Excess of issue price over par....... 120,000 520, From sale of treasury stock............ 30, Total paid-in capital.................... $2,140, Retained earnings................................. 3,900, Total................................................... $6,040, Deduct treasury common stock (5,000 shares at cost)...................... 55, Total stockholders’ equity.................... $5,985,
Retained Earnings Statement For the Year Ended January 31, 2010 Retained earnings, February 1, 2009................................. $ 3,175, Net income........................................................................... $415, Less dividends declared.................................................... 215, Increase in retained earnings............................................. 199, Retained earnings, January 31, 2010................................ $ 3,375,
Statement of Stockholders’ Equity For the Year Ended December 31, 2010 Paid-In Common Capital in Stock Excess Treasury Retained $50 Par of Par Stock Earnings Total Balance, Jan. 1, 2010...... $2,000,000 $320,000 — $3,480,000 $5,800, Issued 18,000 shares of common stock........ 900,000 216,000 1,116, Purchased 3, shares as treasury stock............................ $(144,000) (144,000) Net income...................... 510,000 510, Dividends......................... (100,000) (100,000) Balance, Dec. 31, 2010... $2,900,000 $536,000 $(144,000) $3,890,000 $7,182,
a. 160,000 shares (40,000 × 4) b. $75 per share ($300/4)
Stockholders’ Assets Liabilities Equity (1) Declaring a cash dividend 0 + – (2) Paying the cash dividend declared in (1) – – 0 (3) Authorizing and issuing stock certificates in a stock split 0 0 0 (4) Declaring a stock dividend 0 0 0 (5) Issuing stock certificates for the stock dividend declared in (4) 0 0 0
Feb. 3 No entry required. The stockholders ledger would be revised to record the increased number of shares held by each stockholder. Apr. 10 Cash Dividends...................................................... 47,000* Cash Dividends Payable.................................. 47, [(18,000 shares × $1.50) + (250,000 shares × $0.08)] = $27,000 + $20,000 = $47, June 9 Cash Dividends Payable....................................... 47, Cash................................................................... 47, Oct. 10 Cash Dividends...................................................... 37,000 Cash Dividends Payable.................................. 37, [(18,000 shares × $1.50) + (250,000 shares × $0.04)] = $27,000 + $10,000 = $37, 10 Stock Dividends..................................................... 180,000* Stock Dividends Distributable (5,000 × $20). 100, Paid-In Capital in Excess of Par—Common Stock........................................ 80, **(250,000 shares × 2% × $36) = $180, Dec. 9 Cash Dividends Payable....................................... 37, Cash................................................................... 37, 9 Stock Dividends Distributable.............................. 100, Common Stock................................................. 100,
Earnings per Share = NumberofCommonSharesOutstanding Net Income−Preferred Dividends Earnings per Share = 20,000commonsharesoutstanding $160,000 −($7pershare×2,000 shares) Earnings per Share = $7.30 per share
a. OfficeMax: Earnings per Share = NumberofCommonSharesOutstanding Net Income−Preferred Dividends Earnings per Share = 73,142,000commonsharesoutstanding $91,721,00 0 −($54,735,0 00 × 7.375%) Earnings per Share = $1.20 per share Staples: Earnings per Share = NumberofCommonSharesOutstanding Net Income−Preferred Dividends Earnings per Share = (^) 720,528,00 0 commonsharesoutstanding $973,577,0 00 Earnings per Share = $1.35 per share b. Staples’ net income is over 10 times greater than OfficeMax’s. This is because Staples is a much larger business than OfficeMax. As a result, Staples also has nearly 10 times greater shares outstanding as well. The earnings per share for both firms can be used to compare their relative earnings. Staples has a better earnings per share ($1.35) than does OfficeMax ($1.20).
Total Preferred Dividends Year Dividends Total Per Share Total Per Share 2005 ........................ $ 5,000 $ 5,000 $ 0.50 $ 0 $ 0 2006 ........................ 18,000 18,000 1.80 0 0 2007 ........................ 45,000 37,000* 3.70 8,000 0. 2008 ........................ 45,000 20,000 2.00 25,000 1. 2009 ........................ 60,000 20,000 2.00 40,000 1. 2010 ........................ 67,000 20,000 2.00 47,000 1. $12.00 $4. *$37,000 = (2005 dividends in arrears of $15,000) + (2006 dividends in arrears of $2,000) + (2007 current dividend of $20,000)