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Here are seven more accounting problems. Thanks!...

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Here are seven more accounting problems. Thanks! 85. Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2010: Common stock, par value $20; authorized 75,000 shares; issued and outstanding 45,000 shares $ 900,000 Paid-in capital in excess of par value 250,000 Retained earnings 500,000 $1,650,000 During 2011, the following transactions occurred relating to stockholders' equity: 3,000 shares were reacquired at $28 per share. 3,000 shares were reacquired at $35 per share. 1,800 shares of treasury stock were sold at $30 per share. For the year ended December 31, 2011, Oaks reported net income of $450,000. Assuming Oaks accounts for treasury stock under the cost method, what should it report as total stockholders' equity on its December 31, 2011, balance sheet? a. $1,965,000. b. $1,961,400. c. $1,957,800. d. $1,515,000. Answer is A 102. Masterson Company has 420,000 shares of $10 par value common stock outstanding. During the year Masterson declared a 5% stock dividend when the market price of the stock was $36 per share. Three months later Masterson declared a $.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by a. $1,020,600 b. $756,000 c. $264,600 d. $252,000 Answer is A 105. At the beginning of 2011, Hamilton Company had retained earnings of $150,000. During the year Hamilton reported net income of $75,000, sold treasury stock at a ?gain? of $27,000, declared a cash dividend of $45,000, and declared and issued a small stock dividend of 1,500 shares ($10 par value) when the market value of the stock was $30 per share. The amount of retained earnings available for dividends at the end of 2011 was: a. $184,500. b. $162,000. c. $157,500. d. $135,000. Answer is D *117. Assuming that $183,000 will be distributed, and the preferred stock is also participating, how much will the common stockholders receive? a. $111,000. b. $90,000. c. $93,000. d. $48,000. Answer is B *118. Yoder, Inc. has 50,000 shares of $10 par value common stock and 25,000 shares of $10 par value, 6%, cumulative, participating preferred stock outstanding. Dividends on the preferred stock are one year in arrears. Assuming that Yoder wishes to distribute $135,000 as dividends, the common stockholders will receive a. $30,000. b. $55,000. c. $80,000. d. $105,000. Answer is C 121. On July 1, 2010, Nall Co. issued 2,500 shares of its $10 par common stock and 5,000 shares of its $10 par convertible preferred stock for a lump sum of $125,000. At this date Nall's common stock was selling for $24 per share and the convertible preferred stock for $18 per share. The amount of the proceeds allocated to Nall's preferred stock should be a. $62,500. b. $75,000. c. $90,000. d. $68,750. Answer is B 122. Horton Co. was organized on January 2, 2010, with 500,000 authorized shares of $10 par value common stock. During 2010, Horton had the following capital transactions: January 5?issued 375,000 shares at $14 per share. July 27?purchased 25,000 shares at $11 per share. November 25?sold 15,000 shares of treasury stock at $13 per share. Horton used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2010? a. $0. b. $15,000. c. $30,000. d. $45,000. Answer is C,Hi Michael. I have some more questions. You've done a great job helping me with my other questions. Thanks! Denise,Michael. Yes. I have the answers but I need to see how to solve each problem. Thanks! Denise,Michael, This is all the information I have on 117: *117. Assuming that $183,000 will be distributed, and the preferred stock is also participating, how much will the common stockholders receive? a. $111,000. b. $90,000. c. $93,000. d. $48,000. Answer is B If more information is needed to solve this one, I guess skip it. But that is how the problem is presented. Thanks. Denise

 

Paper#1922 | Written in 18-Jul-2015

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