Class14 - Solutions - EXERCISE 15-12 (a) 6/1 Retained...

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EXERCISE 15-12 (a) 6/1 Retained Earnings. ............................ 8,000,000 Dividends Payable. ................... 8,000,000 6/14 No entry on date of record. 6/30 Dividends Payable. ........................... 8,000,000 Cash. .......................................... 8,000,000 (b) If this were a liquidating dividend, the debit entry on the date of declaration would be to Additional Paid-in Capital rather than Retained Earnings. EXERCISE 15-15 (a) Retained Earnings. .................................. 97,500 Common Stock Dividend Distributable. ............................. 25,000 Paid-in Capital in Excess of Par. ... 72,500 (50,000 shares x 5% x $39 = $97,500) Common Stock Dividend Distributable 25,000 Common Stock. ............................... 25,000 (b) No entry, memorandum note to indicate that par value is reduced to $2 and shares outstanding are now 250,000 (50,000 x 5). 1
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EXERCISE 15-15 (Continued) (c) January 5, 2007 Investments (Bonds). .............................. 35,000 Gain on Appreciation of
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This note was uploaded on 12/04/2009 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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Class14 - Solutions - EXERCISE 15-12 (a) 6/1 Retained...

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