301C11gpQ - journal entries above and Retained Earnings has...

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Acct 301 Chapter 11 Group Activity 301C11gpQ.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
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Unformatted text preview: 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 2. in total B. How much would be paid to the common? 1. in total 2. per share...
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