ch (14).docx - Exercise ( 14 1 ) a) Jan. 10 Cash ( 70,000 5...

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Exercise ( 14 – 1 )a)Jan. 10Cash( 70,000× 5 )Common Stock350,000350,000July. 1Cash( 40,000× 8 )Common Stock ( 40,000× 5)Paid in capital in excess of par value( 40,000 × 3)320,000200,000120,000b)Jan. 10Cash( 70,000× 5 )Common Stock( 70,000× 1)Paid in capital in excess of statedvalue( 70,000× 4)350,00070,000280,000July. 1Cash( 40,000× 8 )Common Stock ( 40,000× 1)Paid in capital in excess of par value( 40,000 × 7)320,00040,000280,000Exercise ( 14 – 2 )Mar. 2Organization expenseCommon Stock( 5,000× 1)Paid in capital in excess of par value– common stock30,0005,00025,000June. 12CashCommon Stock ( 60,000× 1)Paid in capital in excess of par value– common stock375,00060,000315,000July. 11Cash( 1,000× 110 )Preferred stock ( 1,000 × 100 )Paid in capital in excess of par value– preferred stock( 1,000× 10 )110,000100,00010,000Nov. 28Treasury stockCash80,00080,000Exercise ( 14 – 3 )Jan. 10LandCommon Stock( 20,000× 10 )Paid in capital in excess of par value( 20,000× 1)350,000350,000
July. 1Land( 20,000× 11 )Common Stock ( 20,000× 10)Paid in capital in excess of par value( 20,000 × 1)220,000200,00020,000Exercise ( 14 – 4 )Mar. 1Treasury stock( 50,000× 16 )Cash800,00080,000July. 1Cash(10,000× 17 )Treasury Stock ( 10,000× 16)Paid in capital from treasury stock(10,000× 1)170,000160,00010,000Sept. 1Cash( 8,000× 15 )Paid in capital from treasury stock( 8,000× 1)Treasury stock ( 8,000× 16)120,0008,000128,000b)Sept. 1Cash( 8,000× 13 )Paid in capital from treasury stockRetained earningsTreasury stock ( 8,000× 16)104,00010,00014,000128,000Exercise (14 – 5)Feb. 1Cash( 20,000× 51 )Preferred stock ( 20,000 × 50 )Paid in capital in excess of par value– preferred stock( 20,000× 1)1,020,0001,000,00020,000July. 1Cash( 10,000× 57 )Preferred stock ( 10,000 × 50 )Paid in capital in excess of par value– preferred stock( 10,000× 7)570,000500,00070,000B)Preferred stockDateExplanationRef.DebitCreditBalanceFeb. 1July. 11,000,000500,0001,000,0001,500,000Paid in capital in excess of par value – preferred stockDateExplanationRef.DebitCreditBalanceFeb. 1July. 120,00070,00020,00090,000
c)preferred stock – listed first in paid in capital under capital stock.Paid in capital in excess of par value – preferred stock – listed first under additional paid incapital.Exercise ( 14 – 6 )May. 2Cash ( 100,000×12 )Common Stock( 10,000× 10)Paid in capital in excess of par value– common stock( 10,000 × 2 )120,000100,00020,000May. 10CashPreferred stock ( 10,000 × 50 )Paid in capital in excess of par value– preferred stock( 10,000× 10 )600,000500,000100,000May. 15Treasury stockCash14,00014,000May. 31Cash ( 500× 16 )Treasury stock( 500 × 14 )Paid in capital from treasury stock( 500× 2 )8,0007,0001,000Exercise (14 – 7 )Dill CorporationPartial balance sheetDecember 31 , 2005Stockholders’ equityPaid in capitalCapital stock8% preferred stock,100 par value , noncumulative ,5,000shares issued500,000Common stock, no par,5 stated value ,300,000 shares issuedand294,000 shares outstanding1,500,000Total capital stock2,000,000Additional paid in capitalIn excess of par value – preferred stock280,000In excess of stated value – common stock900,000Total additional paid in capital1,180,000Total paid in capital3,180,000Retained earnings1,134,000Total paid in capital and retained earnings4,314,000
Less: Treasury stock( 6,000 common shares )(78,000)Total stockholders’ equity4,236,000Exercise ( 14 – 8 )MemoTo :president ___________From :your name , chief accountantRe:questions about stockholders’ equity section

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Term
Winter
Professor
Dr aLi tohamy
Tags
Treasury Stock, Corporate Finance, Shares authorized, total capital stock

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