Chapter 11 Solutions

Chapter 11 Solutions - PRACTICE EXERCISES PE 111A Year 1...

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PRACTICE EXERCISES PE 11–1A Year 1 Year 2 Year 3 Amount distributed. .............................. $15,000 $5,000 $62,000 Preferred dividend (5,000 shares). ....... 8,000 5,000 11,000 * Common dividend (10,000 shares). ..... $ 7,000 $ 0 $ 51,000 *(3,000 + 8,000) Dividends per share: Preferred stock. ............................. $1.60 $1.00 $2.20 Common stock. .............................. $0.70 None $5.10 PE 11–1B Year 1 Year 2 Year 3 Amount distributed. .............................. $30,000 $6,000 $80,000 Preferred dividend (10,000 shares). ..... 10,000 6,000 14,000 * Common dividend (25,000 shares). ..... $ 20,000 $ 0 $66,000 *($4,000 + $10,000) Dividends per share: Preferred stock. ............................. $1.00 $0.60 $1.40 Common stock. .............................. $0.80 None $2.64 PE 11–2A July 3 Cash. ...................................................................... 1,125,000 Common Stock. ............................................... 1,125,000 (450,000 shares × $2.50). Sept. 1 Cash. ...................................................................... 250,000 Preferred Stock. .............................................. 250,000 (10,000 shares × $25). Oct. 30 Cash. ...................................................................... 225,000 Preferred Stock. .............................................. 187,500 Paid-In Capital in Excess of Par. ................... 37,500* *(7,500 shares × $5) 1
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PE 11–2B Feb. 13 Cash. ...................................................................... 10,500,000 Common Stock. ............................................... 9,375,000 Paid-In Capital in Excess of Stated Value. ... 1,125,000* *(75,000 shares × $15) Sept. 9 Cash. ...................................................................... 900,000 Preferred Stock. .............................................. 900,000 (15,000 shares × $60). Nov. 23 Cash. ...................................................................... 560,000 Preferred Stock. .............................................. 480,000 Paid-In Capital in Excess of Par. ................... 80,000* *(8,000 shares × $10) PE 11–3A Oct. 6 Cash Dividends. .................................................... 112,750 Cash Dividends Payable. ............................... 112,750 Nov. 5 No entry required. Dec. 5 Cash Dividends Payable. ..................................... 112,750 Cash. ................................................................. 112,750 PE 11–3B July 1 Cash Dividends. .................................................... 61,500 Cash Dividends Payable. ............................... 61,500 Aug. 1 No entry required. Sept. 30 Cash Dividends Payable. ..................................... 61,500 Cash. ................................................................. 61,500 PE 11–4A May 10 Stock Dividends (100,000 × 2% × $48). .............. 96,000 Stock Dividends Distributable (2,000 × $40) 80,000 Paid-In Capital in Excess of Par— Common Stock ($96,000 – $80,000). ............. 16,000
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This note was uploaded on 05/17/2011 for the course ACCT 2301 taught by Professor White during the Spring '08 term at Central Texas College.

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Chapter 11 Solutions - PRACTICE EXERCISES PE 111A Year 1...

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