Description of this paper

ACC - Pr. 15-143, 15-145, 15-147, 17-114 Problems




Question;Pr. 15-143?Treasury stock transactions.The original sale of the $50 par value common shares of Gray Company was recorded as follows:Cash 290,000Common Stock 250,000Paid-in Capital in Excess of Par 40,000;InstructionsRecord the treasury stock transactions (given below) under the cost method;Transactions:(a) Bought 300 shares of common stock as treasury shares at $62.(b) Sold 80 shares of treasury stock at $60.(c) Sold 40 treasury shares at $68.;Solution 15-143;Date Account Name Ref Debit Credita;b;c;Pr. 15-145?Equity transactions.Foley Corporation has the following capital structure at the beginning of the year;6% Preferred stock, $50 par value, 20,000 shares authorized, 6,000 shares issued and outstanding $ 300,000Common stock, $10 par value, 60,000 shares authorized, 40,000 shares issued and outstanding 400,000Paid-in capital in excess of par 110,000Total paid-in capital 810,000Retained earnings 440,000Total stockholders' equity $1,250,000;Instructions;(a) Record the following transactions which occurred consecutively (show all calculations).1. A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.2. A 10% common stock dividend was declared. The average market value of the common stock is $18 a share.3. Assume that net income for the year was $150,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion.;(b) Construct the stockholders' equity section incorporating all the above information.;Solution 15-145(a)Date Account Name Ref Debit Credit1;Show Computation for Transaction #2;Solution 15-145 (cont.);Show computation for Retained Earnings ? Unappropriated:*Pr. 15-146?Dividends on preferred and common stock.Rensing, Inc., has $800,000 of 8% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during 2009 and 2010. As of December 31, 2011, it is desired to distribute $488,000 in dividends.;InstructionsHow much will the preferred and common stockholders receive under each of the following assumptions:(a) The preferred is noncumulative and nonparticipating.(b) The preferred is cumulative and nonparticipating.(c) The preferred is cumulative and fully participating.(d) The preferred is cumulative and participating to 12% total.;Solution 15-146(a) Preferred Common Total(b) Preferred Common Total(c) Preferred Common Total(d) Preferred Common Total;Pr. 15-147?Basic EPS.Assume that the following data relative to Kane Company for 2010 is available:Net Income $2,100,000;Transactions in Common Shares Change CumulativeJan. 1, 2010, Beginning number 700,000Mar. 1, 2010, Purchase of treasury shares (60,000) 640,000June 1, 2010, Stock split 2-1 640,000 1,280,000Nov. 1, 2010, Issuance of shares 120,000 1,400,000;8% Cumulative Convertible Preferred StockSold at par, convertible into 200,000 shares of common (adjusted for split). $1,000,000;Instructions(a) Compute the basic earnings per share for 2010. (Round to the nearest penny.);Solution 15-147Computation of weighted average shares outstanding during the year:Date Activity Description Number of SharesJanuary 1 Outstanding Shares;(a) Basic Earnings per share;CAPITULO 15 INVESTMENTSPROBLEMS;Pr. 17-114?Trading equity securities.Gordon Company has the following securities in its portfolio of trading equity securities on December 31, 2007:Cost Fair Value5,000 shares of Milner Corp., Common $155,000 $139,00010,000 shares of Eddy, Common 182,000 190,000$337,000 $329,000All of the securities had been purchased in 2007. In 2008, Gordon completed the following securities transactions:March 1 Sold 5,000 shares of Milner Corp., Common @ $31 less fees of $1,500.April 1 Bought 600 shares of Yount Stores, Common @ $45 plus fees of $550.The Gordon Company portfolio of trading equity securities appeared as follows on December 31, 2008:Cost Fair Value10,000 shares of Eddy, Common $182,000 $195,500600 shares of Yount Stores, Common 27,550 25,500$209,550 $221,000;Instructions: Prepare the general journal entries for Gordon Company for:(a) the 2007 adjusting entry. (c) the purchase of the Yount Stores' stock.(b) the sale of the Milner Corp. stock. (d) the 2008 adjusting entry;Solution 17-114Date Account Name Ref Debit Credit(a);Show Computation for Transaction (a);(b) Account Name Ref Debit Credit;Show Computation for Transaction (b);(c) Account Name Ref Debit Credit;Show Computation for Transaction (c);(d) Account Name Ref Debit Credit;Show Computation for Transaction (d)


Paper#43206 | Written in 18-Jul-2015

Price : $29