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acct 212 chapter 13 homework 1

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Question;acct 212 homework 1 chapter 13Exercise 13-2 Accounting for par, stated, and no-par stock issuances;L.O. P1;Aloha;Corporation issues 16,000 shares of its common stock for $222,000 cash on;February 20.;1.;Assume;the stock has neither par nor stated value. Prepare journal entries to record;this event. (Omit the "$" sign in;your response.);2.;Assume;the stock has a $11 par value. Prepare journal entries to record this event. (Omit the "$" sign in your response.);3.;Assume;the stock has an $5.5 stated value. Prepare journal entries to record this;event. (Omit the "$" sign in your;response.);Q2;Exercise 13-3 Recording stock issuances L.O. P1;[The following information applies to;the questions displayed below.];Prepare;journal entries to record the following four separate issuances of stock. (Omit the "$" sign in your response.);Section Break;Exercise 13-3 Recording stock issuances L.O. P1;2.;award:1 out of;1.00 point;Exercise 13-3 Part 1;1.;A corporation issued 5,000 shares of no-par;common stock to its promoters in exchange for their efforts, estimated to;be worth $37,000. The stock has no stated value.;rev: 09_21_2012;eBook LinkView Hint #1;Worksheet;Exercise 13-3 Part 1;3.;award:1 out of;1.00 point;Exercise 13-3 Part 2;2.;A corporation issued 5,000 shares of no-par;common stock to its promoters in exchange for their efforts, estimated to;be worth $37,000. The stock has a $1 per share stated value.;rev: 09_21_2012;eBook LinkView Hint #1;Worksheet;Exercise 13-3 Part 2;4.;award:1 out of;1.00 point;Exercise 13-3 Part 3;3.;A corporation issued 10,000 shares of $20 par;value common stock for $240,000 cash.;rev: 09_21_2012;eBook LinkView Hint #1;Worksheet;Exercise 13-3 Part 3;5.;award:1 out of;1.00 point;Exercise 13-3 Part 4;4.;A corporation issued 2,500 shares of $50 par;value preferred stock for $162,000 cash.;6.;award:1 out of;1.00 point;Exercise 13-4 Stock issuance for noncash assets L.O. P1;Soku Company issues 19,000 shares of $10 par;value common stock in exchange for land and a building. The land is;valued at $231,000 and the building at $373,000.;Prepare the journal entry to record issuance;of the stock in exchange for the land and building. (Omit the "$" sign in your response.);eBook Link;Worksheet;Difficulty: Easy;Exercise 13-4 Stock issuance for noncash assets L.O. P1;Learning Objective: 13-P1 Record the issuance of corporate stock.;7.;award:1.34 out of;2.00 points;Exercise 13-6 Stock dividends and splits L.O. P2;On;June 30, 2011, Quinn Corporation?s common stock is priced at $25.5 per;share before any stock dividend or split, and the stockholders? equity;section of its balance sheet appears as follows.;Common;stock?$6 par value, 75,000 shares authorized;30,000 shares issued and outstanding;$;180,000;Paid-in;capital in excess of par value, common stock;100,000;Retained;earnings;280,000;Total;stockholders? equity;$;560,000;Assume that the company declares and;immediately distributes a 100% stock dividend. This event is recorded by;capitalizing retained earnings equal to the stock?s par value. Answer these;questions about stockholders? equity as it exists after issuing;the new shares.;1a.;What;is the retained earnings balance? (Omit the;$" sign in your response.);1b.;What;is the amount of total stockholders? equity? (Omit the "$" sign in your response.);1c.;How;many shares are outstanding?;Assume that the company implements a 2-for-1;stock split instead of the stock dividend in part 1. Answer these questions;about stockholders? equity as it exists after issuing the;new shares.;2a.;What;is the retained earnings balance? (Omit the;$" sign in your response.);2b.;What;is the amount of total stockholders? equity? (Omit the "$" sign in your response.);2c.;How;many shares are outstanding?;eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 13-6 Stock dividends and splits L.O. P2;Learning Objective: 13-P2 Record transactions involving cash;dividends, stock dividends, and stock splits.;Exercise 13-7 Stock dividends and per share book values L.O. P2;[The following information applies to;the questions displayed below.];The;stockholders? equity of Whiz.com Company at the beginning of the day on;February 5 follows.;Common;stock?$5 par value, 150,000 shares authorized;83,000 shares issued and outstanding;$;415,000;Paid-in;capital in excess of par value, common stock;525,000;Retained;earnings;675,000;Total;stockholders? equity;$;1,615,000;On;February 5, the directors declare a 12% stock dividend distributable on;February 28 to the February 15 stockholders of record. The stock?s market;value is $39 per share on February 5 before the stock dividend. The stock?s;market value is $35 per share on February 28.;Section Break;Exercise 13-7 Stock dividends and per share book values L.O. P2;8.;award:1.20 out of;2.00 points;Exercise 13-7 Part 1;1.;Prepare;entries to record both the dividend declaration and its distribution. (Omit the "$" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 13-7 Part 1;Learning Objective: 13-P2 Record transactions involving cash;dividends, stock dividends, and stock splits.;9.;award:0.25 out of;1.00 point;Exercise 13-7 Part 2;2.;One;stockholder owned 950 shares on February 5 before the dividend. Compute the;book value per share and total book value of this stockholder?s shares;immediately before and after the stock dividend of February;5. (Do not round intermediate calculations.;Round book value per share to 2 decimal places and other answers to the;nearest dollar amount. Omit the "$" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 13-7 Part 2;Learning Objective: 13-P2 Record transactions involving cash;dividends, stock dividends, and stock splits.;10.;award:1 out of;1.00 point;Exercise 13-7 Part 3;3.;Compute;the total market value of the investor?s shares in part 2 as of February 5;and February 28.(Omit;the "$" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 13-7 Part 3;Learning Objective: 13-P2 Record transactions involving cash;dividends, stock dividends, and stock splits.;11.;award:2 out of;2.00 points;Exercise 13-8 Dividends on common and noncumulative preferred stock L.O.;C2;Wade?s;outstanding stock consists of 13,000 shares of noncumulative 7.30%;preferred stock with a $10 par value and also 32,500 shares of common stock;with a $1 par value. During its first four years of operation, the;corporation declared and paid the following total cash dividends.;Determine;the amount of dividends paid each year to each of the two classes of;stockholders. (Leave no cells blank - be;certain to enter "0" wherever required. Omit the "$" sign;in your response.);Compute;the total dividends paid to each class for the four years combined. (Omit the "$" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 13-8 Dividends on common and noncumulative preferred stock;L.O. C2;Learning Objective: 13-C2 Explain characteristics of, and distribute;dividends between, common and preferred stock.;2.;award:1.60 out of;2.00 points;Exercise 13-9 Dividends on common and cumulative preferred stock L.O. C2;Wade?s;outstanding stock consists of 53,000 shares of cumulative 9.50%;preferred stock with a $10 par value and also 132,500 shares of common stock;with a $1 par value. During its first four years of operation, the;corporation declared and paid the following total cash dividends.;Determine;the amount of dividends paid each year to each of the two classes of;stockholders. (Leave no cells blank - be;certain to enter "0" wherever required. Omit the "$" sign;in your response.);Determine;the total dividends paid to each class for the four years combined. (Omit the "$" sign in your response.);eBook LinkView Hint #1;13.;award:1.67 out of;2.00 points;Exercise 13-11 Preparing a statement of retained earnings L.O. C3;The;following information is available for Ballard Company for the year ended;December 31, 2011.;a.;Balance;of retained earnings, December 31, 2010, prior to discovery of error, $870,000.;b.;Cash;dividends declared and paid during 2011, $13,000.;c.;It;neglected to record 2009 depreciation expense of $42,600, which is net of;$6,400 in income taxes.;d.;The;company earned $220,000 in 2011 net income.;Prepare a 2011 statement of retained earnings for;Ballard Company. (Amounts to be deducted;should be indicated with a minus sign. Omit the "$" sign in your;response.);14.;award:1 out of;1.00 point;Exercise 13-12 Earnings per share L.O. A1;Guess;Company reports $1,375,000 of net income for 2011 and declares $192,500 of;cash dividends on its preferred stock for 2011. At the end of 2011, the;company had 320,000 weighted-average shares of common stock.;1.;What;amount of net income is available to common stockholders for 2011? (Omit the "$" sign in your response.);2.;What is;the company?s basic EPS for 2011? (Round your;answer to 2 decimal places. Omit the "$" sign in your response.);15.;award:1 out of;1.00 point;Exercise 13-13 Earnings per share L.O. A1;Franklin;Company reports $2,000,000 of net income for 2011 and declares $280,000 of;cash dividends on its preferred stock for 2011. At the end of 2011, the;company had 290,000 weighted-average shares of common stock.;1.;What;amount of net income is available to common stockholders for 2011? (Omit the "$" sign in your response.);2.;What is;the company?s basic EPS for 2011? (Round your;answer to 2 decimal places. Omit the "$" sign in your response.);eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 13-13 Earnings per share L.O. A1;16.;award:2 out of;2.00 points;Exercise 13-14 Dividend yield computation and interpretation L.O. A3;Compute;the dividend yield for each of these four separate companies. (Round your answers to 1 decimal place. Omit the;%" sign in your response.);Which;company?s stock would probably not be classified as an;income stock?;Company 4;eBook LinkView Hint #1;Worksheet;Difficulty: Medium;Exercise 13-14 Dividend yield computation and interpretation L.O. A3;Learning Objective: 13-A3 Compute dividend yield and explain its use;in analysis.;17.;award:1.20 out of;2.00 points;Exercise 13-15 Price-earnings ratio computation and interpretation L.O.;A2;Compute;the price-earnings ratio for each of these four separate companies. (Round your answers to 1 decimal place.);Which;stock might an analyst likely investigate as being potentially undervalued by;the market?;Company 4;eBook LinkView Hint #1;Worksheet;8.;award:1 out of;2.00 points;Exercise 13-16 Book value per share L.O. A4;The;equity section of Webster Corporation?s balance sheet shows the following.;Preferred;stock?5% cumulative, $20 par value, $25 call price;10,000 shares issued and outstanding;$;200,000;Common;stock?$10 par value, 35,000 shares issued and outstanding;350,000;Retained;earnings;267,500;Total;stockholders? equity;$;817,500;Determine;the book value per share of the preferred and common stock under two separate;situations.(Round your answers to 2 decimal;places. Omit the "$" sign in your response.);1.;No;preferred dividends are in arrears.;2.;Three;years of preferred dividends are in arrears.;19.;award:2 out of;2.00 points;Exercise 13-17 Accounting for equity under IFRS L.O. C3, P1;Unilever;Group reports the following equity information for the years ended December;31, 2007 and 2008 (euros in millions).;December;31;2008;2007;Share;capital;?;499;?;499;Share;premium;136;168;Other;reserves;(6,455;(3,414;Retained;profit;15,826;15,169;Shareholders?;equity;?;10,006;?;12,422;1.;Match;each of the three account titles share capital, share premium, and retained;profit with the usual account title applied under U.S. GAAP.;a.;Share;capital;Common;stock, par value;b.;Share;premium;Paid-in;capital in excess of par value, common stock;c.;Retained;profit;Retained;earnings;2.;Prepare;Unilever?s journal entry, using its account titles, to record the issuance of;capital stock assuming that its entire par value stock was issued on December;31, 2007, for cash. (Enter answers in;millions of euros and not in whole euros. Omit;the "?" sign in your response.);General journal;Debit;Credit;Cash;667;Share;capital;Share;premium;3.;What;were Unilever?s 2008 dividends assuming that only dividends and income;impacted retained profit for 2008 and that its 2008 income totaled ?2,676? (Enter answers in millions of euros and not in whole euros. Omit the "?" sign in your response.);Dividends;? 2,019;eBook Links (2);Worksheet;Difficulty: Medium;Learning Objective: 13-P1 Record the issuance of corporate stock.;Exercise 13-17 Accounting for equity under IFRS L.O. C3, P1;Learning Objective: 13-C3 Explain the items reported in retained;earnings.;20.;award:1.29 out of;4.00 points;Exercise 13-18 Cash dividends, treasury stock, and statement of retained;earnings L.O. C3, P2, P3;Kroll;Corporation reports the following components of stockholders? equity on;December 31, 2011.;Common;stock?$27 par value, 52,000 shares authorized;42,000 shares issued and outstanding;$;1,134,000;Paid-in;capital in excess of par value, common stock;51,000;Retained;earnings;268,000;Total;stockholders? equity;$;1,453,000;In year 2012, the following transactions affected;its stockholders? equity accounts.;Jan.;2;Purchased;3,600 shares of its own stock at $27 cash per share.;Jan.;7;Directors;declared a $1 per share cash dividend payable on Feb. 28 to the Feb. 9;stockholders of record.;Feb.;28;Paid;the dividend declared on January 7.;July;9;Sold;400 of its treasury shares at $32 cash per share.;Aug.;27;Sold;3,200 of its treasury shares at $25 cash per share.;Sept.;9;Directors;declared a $1 per share cash dividend payable on October 22 to the September;23 stockholders of record.;Oct.;22;Paid;the dividend declared on September 9.;Dec.;31;Closed;the $8,000 credit balance (from net income) in the Income Summary account to;Retained Earnings.;Required;1.;Prepare;journal entries to record each of these transactions for 2012. (Omit the "$" sign in your response.);2.;Prepare;a statement of retained earnings for the year ended December 31, 2012. (Amounts to be deducted should be indicated with a minus;sign. Omit the "$" sign;in your response.);/;3.;Prepare;the stockholders? equity section of the company?s balance sheet as of;December 31, 2012.(Omit the "$" sign in;your response.);rev: 02_21_2012;eBook Links (3);Worksheet;Difficulty: Hard;Learning Objective: 13-P2 Record transactions involving cash;dividends, stock dividends, and stock splits.;Exercise 13-18 Cash dividends, treasury stock, and statement of;retained earnings L.O. C3, P2, P3;Learning Objective: 13-C3 Explain the items reported in retained;earnings.;Learning Objective: 13-P3 Record purchases and sales of treasury stock;and the retirement of stock.

 

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