Description of this paper

accounting problems with all solutions




Question;Question 1The common stock of Warner Inc. is currently selling at $121 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $8, book value is $76 per share. 5.96 million shares are issued and outstanding.Prepare the necessary journal entries assuming the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)(a) The board votes a 2-for-1 stock split.(b) The board votes a 100% stock dividend.No.Account Titles and ExplanationDebitCredit(a) (b) (To record the declaration.)(To record the distribution.)Question 2On January 5, 2012, Phelps Corporation received a charter granting the right to issue 5,600 shares of $105 par value, 6% cumulative and nonparticipating preferred stock, and 55,000 shares of $11 par value common stock. It then completed these transactions.Jan. 11 Issued 21,450 shares of common stock at $16 per share.Feb. 1 Issued to Sanchez Corp. 4,700 shares of preferred stock for the following assets: equipment with a fair value of $57,660, a factory building with a fair value of $169,200, and land with an appraised value of $330,000.July 29 Purchased 1,870 shares of common stock at $18 per share. (Use cost method.)Aug. 10 Sold the 1,870 treasury shares at $13 per share.Dec. 31 Declared a $0.45 per share cash dividend on the common stock and declared the preferred dividend.Dec. 31 Closed the Income Summary account. There was a $176,320 net income.(a) Record the journal entries for the transactions listed above. (Round answers to 0 decimal places, e.g. 125. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.)DateAccount Titles and ExplanationDebitCreditJanuary 11February 1July 29August 10December 31December 31(b) Prepare the stockholders? equity section of Phelps Corporation?s balance sheet as of December 31, 2012. (For preferred stock, common stock and treasury stock enter the account name only and do not provide the descriptive information provided in the question.)PHELPS CORPORATIONStockholders? EquityDecember 31, 2012$$$Question 3On January 1, 2012, Bailey Industries had stock outstanding as follows.6% Cumulative preferred stock, $101 par value,issued and outstanding 10,700 shares$1,080,700Common stock, $11 par value, issued andoutstanding 279,600 shares 3,075,600To acquire the net assets of three smaller companies, Bailey authorized the issuance of an additional 194,400 common shares. The acquisitions took place as shown below.Date of AcquisitionShares IssuedCompany A April 1, 2012 66,000Company B July 1, 2012 86,400Company C October 1, 2012 42,000On May 14, 2012, Bailey realized a $109,200 (before taxes) insurance gain on the expropriation of investments originally purchased in 2000.On December 31, 2012, Bailey recorded net income of $358,800 before tax and exclusive of the gain.Assuming a 43% tax rate, compute the earnings per share data that should appear on the financial statements of Bailey Industries as of December 31, 2012. Assume that the expropriation is extraordinary. (Round answer to 2 decimal places, e.g. $2.55.)Bailey IndustriesIncome StatementFor the year ended December 31, 2012$$


Paper#41278 | Written in 18-Jul-2015

Price : $22