301C11gp - Acct 301 Chapter 11 Group Activity...

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

View Full Document Right Arrow Icon
301C11gp.doc/jun’07/Burbage Authorized stock: Common Stock: 50,000 shares no-par Preferred Stock: 10,000 shares 10%, $20 par 1. Prepare the journal entry for the sale of 2,000 shares of common at $6.00 per share. 2. Prepare the journal entry for the sale of 300 shares of preferred at $23 per share. 3. Prepare the journal entry for the purchase of 50 shares of common stock by the company at $8.00 per share. 4. Prepare the Shareholders’ Equity section of a balance sheet assuming the 3 journal entries above and Retained Earnings has a balance of $10,000. 5. How much is the legal capital? 6. How much is the paid in capital? 7. How much is the total shareholders equity? 8. How much is the maximum dividend allowed by law. 9. Do corporations usually pay the maximum dividend allowed by law? Why or why not? 10. Assuming dividends of $2,550 were declared and paid: A. How much would be paid to the preferred? 1. per share
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

301C11gp - Acct 301 Chapter 11 Group Activity...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online