Solutions for chapter 12

Solutions for chapter 12 - PROBLEM 12-4B (a) NORWAY COMPANY...

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PROBLEM 12-4B (a) NORWAY COMPANY Retained Earnings Statement For the Year Ended December 31, 2002 Balance, January 1, as reported. ............... $ 900,000 Correction for understatement of net income in 2001 (depreciation error). ...... 100,000 Balance, January 1, as adjusted. ............... 1,000,000 Add: Net income. ....................................... 3,600,000 4,600,000 Less: Cash dividends—common. ............. $1,490,000* Cash dividends—preferred. ............ 800,000 2,290,000 Balance, December 31. ................................ $2,310,000 *(1,500,000 – 10,000) X $1
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PROBLEM 12-4B (Continued) (b) NORWAY COMPANY Partial Balance Sheet Stockholders’ equity Paid-in capital Capital stock Preferred stock, $100 par value, 8%, cumula- tive, 100,000 shares issued and outstanding. ..... $10,000,000 Common stock, $10 par value, 1,500,000 shares issued and 1,490,000 shares outstanding. ............. 15,000,000 Total capital stock. ........... 25,000,000 Additional paid-in capital In excess of par value—
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This note was uploaded on 05/21/2011 for the course ACY 1111 taught by Professor Km during the Spring '10 term at CUHK.

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Solutions for chapter 12 - PROBLEM 12-4B (a) NORWAY COMPANY...

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