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14 - Class Exercises

# 14 - Class Exercises - 40,000 shares of common stock at par...

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ACC212 NVCC - Annandale Mitchell Chapter 14 - Class Exercises 1) E14-2B Ortiz Corporation was organized on January 1, 2009. During its first year, the corporation issued 2,000 shares of \$50 par value preferred stock and 100,000 shares of \$10 par value common stock. At December 31, the company declared the following cash dividends: 2009, \$5,000, 2010, \$12,000, and 2011, \$28,000. Instructions (a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and not cumulative. (b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and cumulative. (c) Journalize the declaration of the cash dividend at December 31, 2011, under part (b). 2) E14-3B On January 1, 2010, Iona Corporation had \$1,200,000 of common stock outstanding that was issued at par. It also had retained earnings of \$750,000. The company issued
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Unformatted text preview: 40,000 shares of common stock at par on July 1 and earned net income of \$400,000 for the year. Instructions Journalize the declaration of a 15% stock dividend on December 10, 2010, for the following independent assumptions. 1. Par value is \$10, and market value is \$18. 2. Par value is \$5, and market value is \$20. 3) Retained Earnings Statement 1. Declared cash dividends \$100,000. 2. Corrected overstatement of 2007 net income because of depreciation error \$20,000. 3. Earned net income \$500,000. 4. Declared stock dividends \$50,000. Prepare a retained earnings statement for the year. On January 1, 2008, Taylor Corporation had retained earnings of \$800,000. During the year, Taylor had the following selected transactions....
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