{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Problems 11 - 3A and 8A solutions

# Accounting: Tools for Business Decision Making

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

PROBLEM 11-3A PEPP COMPANY Partial Balance Sheet December 31, 2007 Stockholders’ equity Paid-in capital Capital stock 8% Preferred stock, \$100 par value, cumulative, 100,000 shares issued and outstanding ................................ \$10,000,000 Common stock, \$5 par value, 1,300,000 shares issued and 1,285,000 shares outstanding .......... 6,500,000 Total capital stock ................................ \$16,500,000 Additional paid-in capital In excess of par value— preferred stock .................................. 900,000 In excess of par value— common stock ................................... 1,800,000 Total additional paid-in capital .... 2,700,000 Total paid-in capital ...................... 19,200,000 Retained earnings ............................................... 2,458,000 * Total paid-in capital and retained earnings ....................... 21,658,000 Less: Treasury stock-common (15,000 shares) ................................................. (165,000 ) Total stockholders’ equity ........... \$21,493,000 *\$1,200,000 + \$3,600,000 – \$1,542,000 a – \$800,000

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

View Full Document
a 1,300,000 shares issued less 15,000 shares in treasury = 1,285,000 shares; outstanding; 1,285,000 X \$1.20 = \$1,542,000.
*PROBLEM 11-8A (a) Jan. 15 Retained Earnings (60,000 X \$0.5) .... 30,000 Dividends Payable ....................... 30,000 Feb. 15 Dividends Payable .............................. 30,000 Cash .............................................. 30,000 Apr. 15 Retained Earnings (6,000 X \$14) ....... 84,000 Common Stock Dividends Distributable (6,000 X \$10) ...... 60,000 Paid-in Capital in Excess of Par Value (6,000 X \$4)

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

View Full Document
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