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Accounting ch10 homework

# Accounting ch10 homework - Question 1 Score 3.93/5 Your...

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Question 1: Score 3.93/5 Your response Womack Grove Entertainment's corporate charter allows it to sell 300,000 shares of \$2 par value common stock. To date, the company has issued 100,000 shares for a total of \$275,000. Last month, Womack Grove repurchased 500 shares for \$3.75 per share. Requirement 1: If Womack Grove was to prepare a balance sheet, how many shares would it show as authorized, issued, and outstanding? Shares Authorized 500 (0%) Issued 100000 (33%) Outstanding 99500 (33%)

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Total grade: 0.0×1/3 + 1.0×1/3 + 1.0×1/3 = 0% + 33% + 33% Feedback: Outstanding 99,500 (100,000–500) Your response Requirement 2: In addition to the shareholders' equity described above, Womack Grove also has \$415,000 in retained earnings. Using this information, prepare the shareholders' equity section of Womack Grove Entertainment's balance sheet. (Omit the "\$" sign in your response.) Common stock (9%) \$ 200000 (9%) Additional paid-in capital, common stock (9%)
75000 (9%) Retained earnings (9%) \$ 415000 (9%) Less (9%) : Treasury stock (9%) 1875 (9%) 1875 (0%) Total shareholders' equity \$ 688125 (9%) Total grade: 1.0×1/11 + 1.0×1/11 + 1.0×1/11 + 1.0×1/11 + 1.0×1/11 + 1.0×1/11 + 1.0×1/11 + 1.0×1/11 + 1.0×1/11 + 0.0×1/11 + 1.0×1/11 = 9% + 9% + 9% + 9% + 9% + 9% + 9% + 9% + 9% + 0% + 9%

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Feedback: Shareholders' Equity: Common stock, \$2 par value, 300,000 shares authorized, 100,000 shares issued and 99,500 shares outstanding \$ 200,000 Additional paid-in capital, common stock
75,000 Retained earnings 415,000 Less : Treasury stock(500 × 3.75) (1,875 ) Total shareholders' equity \$ 688,125 Question 2: Score 2.5/5 Your response Correct response

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Rich Land had a net income of \$315,000 for the year ended June 30, 2008. On July 15, 2008, the board of directors met and declared a dividend of \$0.25 per share for each of the 500,000 outstanding shares of common stock. The board voted to make the actual distribution on September 1 to all shareholders of record as of August 1. Requirement 1: What is (a) the date of declaration, (b) the date of record, and (c) the date of payment?
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