P15-3A - 2,000,000 Common stock dividends distributable...

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Homework # 2 P15-3A a) Retained Earnings 2005, Jan. 2,450,000 Novem. 1 $600000 New bal. 1,850,000 Decem.31 280000 New bal. 1,570,000 net income 795,000 New bal. 2,365,000 b) Nakona Corporation Retained Earnings Statement For the Year 2005 Balance, January 1, as reported 2,450,000 2,450,000 Add: Net income 795,000 3,245,000 Less: Cash Dividends 600,000 Stock Dividends 280,000 880,000 Balance, December 31 2,365,000 c) Nakona Corporation Balance Sheet (partial) For the Year 2005 Stockholders' equity Paid-in capital Capital stock 9%, Preffered stock, $100 par value, noncumulative, callable at $125, 20000 authorized, 10000 issued ans outstanding 1,000,000 Common stock, no-par, stated value $5, 600000 authorized, 400000 are issued
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Unformatted text preview: 2,000,000 Common stock dividends distributable 200,000 2,200,000 Total capital stock 3,200,000 Additional paid-in capital In excess of par value - preffered stock 200,000 In excess of stated value - common stock 1,100,000 Total additional paid-in capital 1,300,000 Total paid-in capital 4,500,000 2,365,000 Total paid-in and retained earnings 6,865,000 Note A: Retained Earnings is restricted for plant expasion on $100000 d) Earnings per share = 2.2 Retained Earnings (see Note A) e) Total dividend 600,000 Allocated to preffered stock 80,000 80,000 Remainder allocation to common stock 520,000...
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This note was uploaded on 02/19/2010 for the course ACCT 221 taught by Professor Strauss during the Spring '07 term at Maryland.

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P15-3A - 2,000,000 Common stock dividends distributable...

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