{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

2293 Chapter 11 Assign Solution 292[1]

# 2293 Chapter 11 Assign Solution 292[1] - \$117,600 c The...

This preview shows pages 1–2. Sign up to view the full content.

11-24 a) 1. Cash (A) 220,000 Preferred shares (SE) 60,000 Common Shares (SE) 160,000 2. Land (A) 90,000 Common Shares 90,000 3. Income summary (SE) 75,000 Retained earnings (SE) 75,000 5. Preferred dividends declared (SE) (2,000 x \$3.00) 6,000 Preferred Dividends Payable 6,000 Dividends declared (SE) (11,000 x \$4.00) 44,000 Dividends payable (L) 44,000 6. Preferred Dividends Payable 6,000 Common Dividends Payable 44,000 Cash 50,000 7. A 10% stock dividend is declared and distributed on the common shares: Dividends declared (SE) (11,000 x 10% x \$24.0) 26,400 Common shares (SE) (11,000 x 10% x \$24.00) 26,400 8. Preferred dividends declared (SE) (2,000 x \$3.00) 6,000 Cash 6,000 9. Income summary (SE) 125,000 Retained earnings (SE) 125,000 b) \$3, Preferred shares (2,000 issued and 60,000 outstanding, 50,000 authorized) Common shares (12,100 issued, \$276,400 and outstanding, unlimited authorized) Retained earnings * 117,600

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

View Full Document
Total shareholders’ equity \$454,000 * \$75,000 – 6,000 – 44,000 +125,000 – 6,000-26400 =
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: \$117,600 c) The owners would have designated the preferred shares as non-voting in order to maintain control over the corporation. That is, in order to maintain the initial shared control structure resulting from the original common share issuance to the owners (each with 25% control). 11-31 a. Preferred Common Total 2006 750,000 2007 750,000 2008 750,000 2,750,000 5,000,000 b. Total dividend / # shares = \$2,750,000/750,000 = \$3.67 c. The entry for the stock dividend would be Stock dividends declared (SE) 4,425,000 Common shares (SE) 4,425,000 (750,000 x 10% x \$59) This would reduce the company’s retained earnings and increase the share capital by increasing the common shares. The total dollar amount of shareholders equity would remain unchanged. d. The company could use the issuance of shares instead of cash as a way of satisfying their shareholders request for dividends while conserving their cash....
View Full Document