Chapter_11 - BRIEF EXERCISE 11-2(a May 2 June 15 Nov 1 Dec...

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BRIEF EXERCISE 11-2 (a) May 2 Cash .................................................................................... 15,000 Common Shares (1,000 × $15) .................................. 15,000 June 15 Cash .................................................................................... 8,500 Common Shares (500 × $17) ..................................... 8,500 Nov. 1 Cash .................................................................................... 3,000 Preferred Shares (100 × $30) ..................................... 3,000 Dec. 15 Cash .................................................................................... 3,500 Preferred Shares (100 × $35) ..................................... 3,500 (b) Number of shares Number of shares authorized issued (1) Preferred shares 100,000 200 (2) Common shares Unlimited 1,500
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BRIEF EXERCISE 11-3 (a) Mar. 8 Cash ........................................................................................ 150,000 Preferred Shares (5,000 × $30) ...................................... 150,000 April 20 Land ........................................................................................ 110,000 Preferred Shares (3,000 shares) .................................... 110,000 (b) If the fair value of the land could not be determined, the fair value of the consideration given up ($35 per share multiplied by 3,000 shares or $105,000) would be used. The journal entry would be as follows: April 20 Land ........................................................................................ 105,000 Preferred Shares (3,000 × $35) ...................................... 105,000 BRIEF EXERCISE 11-6 Dec. 1 Stock Dividends (100,000 × 5% × $15) .......................... 75,000 Stock Dividends Distributable ................................. 75,000 20 No entry required Jan. 10 Stock Dividends Distributable ......................................... 75,000 Common Shares ..................................................... 75,000 BRIEF EXERCISE 11-8 Transaction Assets Liabilities Shareholders’ Equity Number of Shares (a) NE + - NE (b) - - NE NE (c) NE NE +/- NE (d) NE NE +/- + (e) NE NE NE + EXERCISE 11-2 (a) June 12 Cash (50,000 × $6) ............................................. 300,000 Common Shares ......................................... 300,000 July 11 Cash (1,000 × $25) .............................................. 25,000 Preferred Shares ......................................... 25,000 Oct. 1 Land ..................................................................... 75,000
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Common Shares (10,000 shares) .............. 75,000 Nov. 15
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  • Summer '07
  • xxx
  • Dividends, Dividend, ........., Dividend yield, P/E ratio, world oil

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