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

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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
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Retained Earnings -0- Total Stockholders’ Equity $1,500,000
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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
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EXERCISE 8-14 a. (30,000 shares x .04) = 1,200 shares;  1,200 shares x $25 = $30,000 b.
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