ch11 - SOLUTIONS TO PROBLEMS PROBLEM 11-1C (a) Jan. 7 Cash...

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SOLUTIONS TO PROBLEMS PROBLEM 11-1C (a) Jan. 7 Cash (90,000 X $5). ............................. 450,000 Common Stock (90,000 X $2). .... 180,000 Paid-in Capital in Excess of Stated Value—Common Stock (90,000 X $3). .................. 270,000 Feb. 12 Cash (7,000 X $77). ............................. 539,000 Preferred Stock (7,000 X $75). .... 525,000 Paid-in Capital in Excess of Par Value—Preferred Stock. ... 14,000 (7,000 X $2) June30 Cash (65,000 X $6). ............................. 390,000 Common Stock (65,000 X $2). .... 130,000 Paid-in Capital in Excess of Stated Value—Common Stock (65,000 X $4). .................. 260,000 Aug. 24 Cash (25,000 X $6.50). ........................ 162,500 Common Stock (25,000 X $2). .... 50,000 Paid-in Capital in Excess of Stated Value—Common Stock (25,000 X $4.50). ............. 112,500 Dec. 1 Cash (2,000 X $79). ............................. 158,000 Preferred Stock (2,000 X $75). .... 150,000 Paid-in Capital in Excess of Par Value—Preferred Stock. ... 8,000 (2,000 X $4) (b) Preferred Stock Paid-in Capital in Excess of Par Value—Preferred Stock 2/12 525,000 2/12 14,000 12/1 150,000 12/1 8,000 12/31 Bal. 675,000 12/31 Bal. 22,000 11-1
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PROBLEM 11-1C (Continued) Common Stock Paid-in Capital in Excess of Stated Value—Common Stock 1/7 180,000 1/7 270,000 6/30 130,000 6/30 260,000 8/24 50,000 8/24 112,500 12/31 Bal. 360,000 12/31 Bal. 642,500 (c) PICKWICK CORPORATION Partial Balance Sheet December 31, 2007 Stockholders’ equity Paid-in capital Capital stock 8% Preferred stock, $75 par value, 50,000 shares authorized and 9,000 shares issued. .............................. $675,000 Common stock, no-par, $2 stated value, 700,000 shares authorized, 180,000 shares issued. ........................................... 360,000 Total capital stock. .................. $1,035,000 Additional paid-in capital In excess of par value— preferred stock. ............................ 22,000 In excess of stated value— common stock. ............................. 642,500 Total additional paid-in capital. .................................... 664,500 Total paid-in capital. ................ $1,699,500 11-2
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PROBLEM 11-2C (a) Feb. 1 Cash. .................................................... 126,000 Common Stock (7,000 X $1). ...... 7,000 Paid-in Capital in Excess of Stated Value—Common Stock. ......................................... 119,000 Jul. 12 Treasury Stock—Common (2,000 X $17) 34,000 Cash. ............................................. 34,000 Oct. 1 Retained Earnings ($175,000 X .06). .... 10,500 Dividends Payable. ...................... 10,500 Nov. 1 Dividends Payable. ............................. 10,500 Cash. ............................................. 10,500 Dec. 1 Retained Earnings. ............................. 486,000 [250,000* + 7,000 – (12,000 + 2,000)] X $2 Dividends Payable. ...................... 486,000 Dec. 31 Income Summary. ............................... 930,000 Retained Earnings. ...................... 930,000 31 Dividends Payable. ............................. 486,000
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ch11 - SOLUTIONS TO PROBLEMS PROBLEM 11-1C (a) Jan. 7 Cash...

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