Duchac Chapter 11 Series A Problems

Duchac Chapter 11 Series A Problems - CHAPTER 11 SERIES A...

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CHAPTER 11 SERIES A PROBLEMS Prob. 11–1A 1. Total Preferred Dividends Common Dividends Year Dividends Total Per Share Total Per Share 2003. ................ $40,000 $30,000 $1.20 $10,000 $0.25 2004. ................ 18,000 18,000 0.72 0 0 2005. ................ 24,000 24,000 0.96 0 0 2006. ................ 27,000 27,000 1.08 0 0 2007. ................ 65,000 51,000* 2.04 14,000 0.35 2008. ................ 54,000 30,000 1.20 24,000 0.60 $7.20 $1.20 Preferred Dividends *Arrears dividend, preferred (2004: $12,000; 2005: $6,000; 2006: $3,000). ....... $21,000 Current dividend, preferred. .................................... 30,000 Total. ........................................................................ $51,000 2. Average annual dividend for preferred: $1.20 per share ($7.20 ÷ 6) Average annual dividend for common: $0.20 per share ($1.20 ÷ 6) 3. a. 6.0% ($1.20 ÷ $20) b. 2.5% ($0.20 ÷ $8) 11- 11- 1
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Prob. 11–2A Nov. 5 Cash. ..................................................................... 780,000 Mortgage Note Payable. ................................ 780,000 20 Cash. ..................................................................... 720,000 Preferred Stock. ............................................. 600,000 Paid-In Capital in Excess of Par— Preferred Stock. ......................................... 120,000 23 Building. ............................................................... 900,000 Land. ..................................................................... 120,000 Common Stock. ............................................. 600,000 Paid-In Capital in Excess of Par— Common Stock. ......................................... 420,000 11- 11- 2
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Prob. 11–2A Concluded This solution is applicable only if the General Ledger Software that accompanies the text is used. DIAMOND OPTICS Balance Sheet November 23, 20– Assets Cash. .................................................................................. $2,152,223 Accounts receivable. ........................................................ 855,900 Merchandise inventory. ................................................... 2,112,617 Prepaid insurance. ............................................................ 197,260 Supplies. ............................................................................ 190,900 Total current assets. ................................................... $ 5,508,900 Land. .................................................................................. $1,120,000 Building. ............................................................................. 3,507,900 Total plant assets. ....................................................... 4,627,900 Total assets. ...................................................................... $10,136,800 Liabilities Accounts payable. ............................................................ $ 624,300 Total current liabilities. ............................................... $ 624,300 Mortgage note payable. ................................................... $ 780,000
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This note was uploaded on 06/23/2008 for the course ACCT 2101 taught by Professor Sinclair during the Spring '08 term at Georgia Southern University .

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Duchac Chapter 11 Series A Problems - CHAPTER 11 SERIES A...

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