Module 6.3 - Stuck Dividends and Splits>> Orca Inc...

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Unformatted text preview: Stuck Dividends and Splits >)> / Orca Inc. began 2008with a $150,000 creditbalance in retained earnings. The company had $250,000 in reyenues and $110,000 in expenses during the year. The company also paid dividends of $10,000 to its shareholders. Whatwould pethe balance in Orca's retained earnings account at the end of2008? a Close a Walk mohrnud'l a almllar pulley lcome. Jesus nlmanza Jr Wed Feb Q 2011 Exercise 1 I Balance in retained earnings account 2 $ 230000 Type a number into the box, then click Check Answer. / Feedback Check Answer B SIDCK Dividends and Splits lcnme. Jesus nimanza Jr wed Feb 9 2011 9 Exercise 1 I MiniTech Corporation is a technology company struggling to find moneyto increase research & development projects. The companywould like to issue 10,000 shares of$2.UU parvalue common stock at $25 pershare.What journal entrywould the company useto record the issuance ofthis stock General Journal Account Title Debit Cash H 250000 Add Debit Common Stock H 20000 Additional Paid in Capital-Common stock - 230000 a Close 8 Wk mo lhroufll a slmllar pulley / Fe. is. ri ha ['. is check Answer B SIDCK Dividends and Splits lcome. Jesus ntmanza Jr Wed Feb 9 2o11 a 2'1 3'1 Elercise1 I Brook Inc. has 20,000 shares ofcommon stock outstanding, and no preferred stock. During 2008,the companv made a profit of$1 ,SDDflDD, so the board of directors authorized the companv to pav dividends of$2 per share ofcommon stock. The dividends were declared and paid on Januarv 5, 2009. What is thejournal entrv to record the pavmentofthese dividends? General Journal Account Title Retained Earnings H Add Debit —- Forthis Journal Ent the numberofdebits and credits is not re-set. You m cm a Walk mthrough a similar woblarr/ / up.” back Check Answer B Stuck Dividends and Splits EQE Iu'tl'est Inc. has 1,000 shares of$100 parvalue, 3% cumulative preferred stock outstanding. During 200T, West's first vear ofoperations, the company lost monev and did not pay dividends. However, during 2008, West earned a profit of $500,000. The board ofdirectors authorized up to $10,000 ofthis profit could be paid outin dividends. What is the journal entrvto record West's pavment ofdividends on its preferred stock? General Journal Account Title Retained Earnings H Add Debit Forthis Journal Entry, the number ofdebits and credits is not pre-set. You must determine the correct number ofdebits and the correct number of credits. Rows may be added as needed by clicking the Add buttons. No a Close a Walk rm throng-I a similar Misty - Icome. Jesus flimsnzs Jr Wed Feb 9 2011 Exercise 2 I FH r-I. rt ha ck Check Answer @ Stuck Dividends and Splits n a e- Canyon Corporation was founded in early 200?. The company lost money during its firstyear ofoperations, and therefore did not pay dividends in 200?. In 2008, however, the company showed a profitof$1,SDD,DDD. Although the company's board ofdirectors wanted to keep most of that moneyto fund various new products and expansion projects, it did authorize the payment of$200,000 in dividends on February 1, 2009. As ofFepruary1, 2009,the company had the following stock outstanding: - 50,000 shares ofcommon stock - 500 shares of$200 paryalue, 5% cumulative preferred stock What was the company's dividend per share ofcommon stock? a Close a Walk ms thrnufl'l a sllnllal' pulley Dividend per share ofcommon stock 2 $ >)> lcome. Jesus ntmanza Jr Wed Feb @2011 Exercise 3 I pso Type a number into the box,then click Check Answer. / Fr! r-I. rt ha (1k Check Answer B Stuck Dividends and Splits - Icome. Jesus Ilmanza Jr Wed Feb 9 2011 @@ On August?, 2000, the board ofdirectors ofJackson lnc. declared a two-for—one stock split. On that date, the company had 15,000 shares of stock authorized, issued, and outstanding, and the stock was trading at $25 per share. The stock, which has a paryalue of$.02, was initiallyissued at $? per share. Immediately afierthe stock spilt. how many shares ofcommon stock does Jackson have issued? What is the paryalue per share of common stock? Finally, whatisthe market value per share of common stock? a Close a Na": ma tl'lmufl'l a sllnllat pulley / Exercise 1 I 9150.000 shares. $.01 paryalue. and $13 marketyalue 0150.000 shares, $.01 paryalue, and $42 marketyalue 0150.000 shares. $.04 paryalue, and $13 marketyalue 0 75,000 shares. $.02 paryalue, and $13 marketyalue 0 25,000 shares, $.01 paryalue, and $13 marketyalue Select your choice, then click Check Answer. / Fur-I. it hs-i (1k Check Answer B Stock Dividends and Splits - Icome. Jesus almanza Jr Wed Feb 9 2011 I :§ 7 Exercise 2 I PharmGen, a pharmaceutical company, was founded two years ago. Like most pharmaceutical companies, PharmGen did not make any profits in its firsttwo years ofoperations since the company spent heavily on research & development to create new drugs. Howeyer, in orderto continue to attract investors, the company would like to issue a 5% stock dividend this year. PharmGen currently has 15,000 shares ofcommon stock, and no preferred stock outstanding. The stock, which has a paryalue of$2.DD,was initially issued at $1 2 pershare. Currently, the stock is trading at $20 per share. Whatjournal entry must PharmGen use to record this 5% stock dividend? General Journal Account Title Retained Earnings Add Debit Common Stock ‘ Additional Paid in Capital-Common Stock ‘ a Close a Walk me fl'lruuj'l a sllnllat motley / Fr! 9. d ha r. k Check Answer B ...
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