ch 11_Solutions - M11-2) 43,000 new shares may be issued;...

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M11-2) 43,000 new shares may be issued; and 10,000 treasury stock shares may also be reissued. M11-7) April 15 Retained earnings 100,000 Dividends payable 100,000 June 14 Dividends payable 100,000 Cash 100,000 E11-5) 1) a) Cash 120,000 Common stock 48,000 Capitl in excess of par value 72,000 b) Cash 46,000 Common stock 16,000 Capitl in excess of par value 30,000 c) No entry required 2) Stockholders' Equity Contributed capital Common stock (par value $8; authorized 12,000 shares, issued 8,000 shares) 64,000 Capital in excess of par, common stock 102,000 Total contributed capital 166,000 Retained losses (7,000) Total stockholders' equity $159,000 3) The company cannot pay cash dividends since it has no retained earnings, however it can declare stock dividends since there is a large capital in excess of par. E11-8) Stockholders' Equity Contributed capital Preferred stock, %6 (par value $10; authorized 50,000 shares, issued 15,000 shares) 150,000 Capital in excess of par, peferred stock 225,000
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This homework help was uploaded on 02/19/2009 for the course HA 230 taught by Professor Davidlee during the Fall '06 term at Cornell University (Engineering School).

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ch 11_Solutions - M11-2) 43,000 new shares may be issued;...

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