Homework Ch. 8

# Homework Ch. 8 - EXERCISE 8-5 Summary of Transactions Cash...

• Homework Help
• 7

This preview shows pages 1–5. Sign up to view the full content.

EXERCISE 8-5 Summary of Transactions Event Cash  Received Common  Stock PIC in  Excess CS Preferred  Stock PIC in  Excess PS 1. 300,000 200,000 100,000 2. 300,000 250,000 50,000 3. 900,000 500,000 400,000 Totals 1,500,000 700,000 500,000 250,000 50,000 Stockholders’ Equity: Preferred Stock, \$25 stated value, 4% cumulative  class A, 50,000 shares authorized, 10,000 shares  issued and outstanding \$ 250,000 Common Stock, \$10 par value, 400,000 shares  authorized, 70,000 shares issued and outstanding 700,000 Paid-In Capital in Excess of SV, Preferred Stock 50,000 Paid-In Capital in Excess of Par, Common Stock 500,000

This preview has intentionally blurred sections. Sign up to view the full version.

Retained Earnings -0- Total Stockholders’ Equity \$1,500,000
EXERCISE 8-13 Distribution of Dividend: Distributed to  Shareholders Preferred Common Total Dividend Declared \$100,000 Preferred Arrearage* (40,000) \$40,000 Current Preferred  Dividend* (40,000) 40,000 Available for Common 20,000 Distributed to Common (20,000) \$20,000 Total \$80,000 \$20,000 *\$100 x 4% x 10,000 Shares = \$40,000

This preview has intentionally blurred sections. Sign up to view the full version.

EXERCISE 8-14 a. (30,000 shares x .04) = 1,200 shares;  1,200 shares x \$25 = \$30,000 b.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern