COMMERCE%20450ASSIGNMENT%202 - COMM 450 FALL 2011...

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Unformatted text preview: COMM 450 FALL 2011 ASSIGNMENT 2 SHOW YOUR WORK FOR ALL CALCULATIONS NAME _____________________ SECTION # _________________ Question #2.1 (33 marks) Widder Corporation is a privately owned company. At December 31, 2009, Widder had unlimited authorized no par value common shares, of which 15,000 shares were issued. The shareholders’ equity accounts at December 31, 2009 had the following balances: Common shares (15,000 shares) 230,000 Retained earnings 50,000 Accumulated other comprehensive income 2,000 During 2010 Widder had the following transactions: a. On March 1 st , 2,000 common shares were sold for $18 per share. b. On March 15 th , Widder issued 100 no-par value preferred shares (paying annual cumulative dividends of $8 per share) for $110 per share. c. On April 1 st Widder acquired and cancelled 20 common shares for $14.50 per share. d. On April 15 th 10 common shares were acquired and cancelled for $20 per share. e. On April 30 th Widder declared a semi-annual cash dividend on common shares of $0.10 per share, payable on May 31 st , 2010. The preferred share dividend will be paid on schedule in November. f. The common dividend was paid as planned on May 31 st . g. On June 15 th 60 common shares were acquired for $17.50 per share and held in treasury. h. On June 25 th 50 of the treasury stock were resold for $19.25 per share. i. On June 30 th when the market price on the common shares was $23 per share, Widder declared a 5% stock dividend distributable on August 1 st 2010 to common shareholders on record on July 1 st . Treasury shares will not be entitled to the stock dividend...
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COMMERCE%20450ASSIGNMENT%202 - COMM 450 FALL 2011...

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