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6. On January 1, 2010, Gerlach had the following a...

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6. On January 1, 2010, Gerlach had the following account balances in its shareholders' equity accounts. Preferred stock is non-cumulative, and carries 6% dividend rate. During 2010, Gerlach Inc. had several transactions relating to common stock. January 15: Declared a cash dividend of $200,000 to common stockholders after meeting the required 2010 dividend on preferred stock for the year. February 17: Paid the cash dividend to both preferred stock and common stock. April 10: Declared and distributed a 10% stock dividend on the outstanding common stock as of the date. The market value per common share was $10. October 18: Declared a $0.80 special cash dividend per share on the outstanding common stock as of the date. Assume net income is $800,000 for the year ended 12/31/2010. Required: Calculate the ending balance of Stockholders? equity after the above events have been recorded. Do not provide journal entries in your solution; instead prepare a table as shown below and enter the effect of each of the above transactions in the table under the appropriate columns. If an item decreases the balance of an account, put a negative sign before the amount of the item in the table. The total of each column in the end will provide you the stockholders? equity amount. (10 points) Transactions Preferred stock at par PIC in excess on Pref stock Common stock at par PIC in excess on Com stock Retained earnings Treasury stock at cost Jan 1 Balance 1,000,000 1,100,000 250,000 750,000 2,000,000 25,000 January 15 February 17 April 10 October 18 December 31 Dec 31 Balance 7. The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Marriott International Inc. for the 2006 fiscal year. Certain amounts have been replaced with question marks to test your understanding of balance sheets. In addition, you are provided with the following information from an analysis of Marriott's financial position at the same date: Current ratio = 1.3140364; Acid-test ratio = 0.519429; Debt-to-equity ratio = 2.280367. Note: Quick assets consist of Cash and equivalents, and Accounts and notes receivables in this example. Compute the missing amounts (rounded to the nearest $ in millions) in the Marriott balance sheet. 10. The following facts apply to TinyPart Toy Company's pending litigation as of December 31, 2011: a. TinyPart is defending against a lawsuit and believes there is a 51% chance it will lose in court. If they lose, TinyPart estimates that damages will be $100,000. b. TinyPart is defending against another lawsuit for which management believes it is virtually certain to lose in court. If it loses the lawsuit, management estimates damages will fall somewhere in the range of $30,000 - $50,000, with each amount in that range equally likely to occur. Required: i. Indicate how TinyPart would disclose or account for the lawsuit described in part (a) under IFRS in the financial statements for the year ended December 31, 2011. (2 points) ii. Indicate how TinyPart would disclose or account for the lawsuit described in part (b) under under IFRS in the financial statements for the year ended December 31, 2011. (2 points),i had an tutor helped me last time with my questions and i paid 70$ and i got 51 out of 100 so please and its my humble request while accepting the question make sure you know them please don't cheat your self and us and i know who was the tutor who helped me last time i could complain about him but i did not, so please make wise decision while accepting the question, thank you,i believe you did my question last time and i paid 70$ and i faild the exam, i got 51 our of 100, please let me know in advance if you know what you are doing please its a humble request

 

Paper#4897 | Written in 18-Jul-2015

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