Week 5 Team Solutions - Week 5 Team Solutions EXERCISE...

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Week 5 Team Solutions EXERCISE 15-14 (a) Retained Earnings (10,000 X $37). ....................... 370,000 Common Stock Dividend Distributable. ......... 100,000 Paid-in Capital in Excess of Par. ..................... 270,000 Common Stock Dividend Distributable. .............. 100,000 Common Stock. ................................................. 100,000 (b) Retained Earnings (200,000 X $10). ..................... 2,000,000 Common Stock Dividend Distributable. ......... 2,000,000 Common Stock Dividend Distributable. .............. 2,000,000 Common Stock. ................................................. 2,000,000 (c) No entry, the par value becomes $5 and the number of shares outstanding increases to 400,000.
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PROBLEM 15-9 VICARIO CORPORATION Stockholders’ Equity December 31, 2012 Capital stock : Preferred stock, $100 par value 10,000 shares authorized, 5,000 shares ....... $ 500,000 Common stock, $50 par value 15,000 shares authorized, 8,000 shares issued 7,700 shares outstanding 400,000 Total capital stock 900,000 Additional paid-in capital : Paid-in capital in excess of par—preferred $65,000
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Paid-in capital in excess of par—common 59,000* Paid-in capital from treasury stock—preferred 4,700 128,700 Total paid-in capital 1,028,700 Retained earnings 237,400 ** Total paid-in capital and retained earnings 1,266,100 Less: Cost of treasury stock (300 shares— common) 19,200 Total stockholders’ equity $1,246,900 *[($57 – $50) X 7,000 + ($60 – $50) X 1,000] **$610,000 – $312,600 – ($60 X 1,000 shares)
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PROBLEM 15-10 To: Oregon Board of Directors From: Good Student, Financial Advisor Date: Today Subject: Report on the effects of a stock dividend and a stock split INTRODUCTION As financial advisor to the Board of Directors for Oregon, I have been asked to report on the effects of the following options for creating interest in Oregon stock: a 20% stock dividend, a 100% stock dividend, and a 2-for-1 stock split. The board wishes to maintain stockholders’ equity as it presently appears on
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Week 5 Team Solutions - Week 5 Team Solutions EXERCISE...

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