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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
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 Total long-term liabilities ........................................... 780,000 Total liabilities ................................................................... \$ 1,404,300 Stockholders’ Equity Common stock .................................................................. \$2,400,000 Paid-in capital in excess of par—common stock ......... 660,000 Preferred stock ................................................................. 1,800,000 Paid-in capital in excess of par—preferred stock ........ 300,000 Retained earnings ............................................................ 3,572,500 Total stockholders’ equity ......................................... 8,732,500 Total liabilities and stockholders’ equity ...................... \$10,136,800 11- 11-3

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Problem 11–3A a. Treasury Stock ................................................................. 1,080,000 Cash ........................................................................... 1,080,000 b. Cash .................................................................................. 420,000 Treasury Stock .......................................................... 360,000 Paid-In Capital from Sale of Treasury Stock ......... 60,000 c. Cash .................................................................................. 756,000 Preferred Stock ......................................................... 700,000
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Duchac Chapter 11 Series A Problems - CHAPTER 11 SERIES A...

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