EXERCISE 15 - EXERCISE 15-7 (1520 minutes) Stockholders...

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EXERCISE 15-7 (15–20 minutes) # Assets Liabilities Stockholders’ Equity Paid-in Capital Retained Earnings Net Income 1. D NE D NE NE NE 2. I NE I NE D NE 3. I NE I I NE NE EXERCISE 15-8 (15–20 minutes) (a) $1,000,000 X 6% = $60,000; $60,000 X 3 = $180,000. The cumulative dividend is disclosed in a note to the stockholders’ equity section; it is not reported as a liability. (b) Preferred Stock (3,000 X $100). ............................... 300,000 Common Stock (3,000 X 7 X $10). ................... 210,000 Paid-in Capital in Excess of Par Value— Common. ....................................................... 90,000 (c) Paid-in capital Preferred stock, $100 par 6%, 10,000 shares issued. .... $1,000,000 Paid-in capital in excess of par (10,000 X $7). ................ 70,000 EXERCISE 15-10 (20–25 minutes) (a) (1) The par value is $2.50. This amount is obtained from either of the following: 2011—$545 ÷ 218 or 2010—$540 ÷ 216. (2) The cost of treasury shares was higher in 2011. The cost at December 31, 2011 was $42 per share ($1,428 ÷ 34) compared to the cost at December 31, 2010 of $34 per share ($918 ÷ 27). (b) Stockholders’ equity (in millions of dollars) Paid-in capital Common stock, $2.50 par value, 500,000,000 shares authorized, 218,000,000 shares issued,
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and 184,000,000 shares outstanding. ...................... $ 545 Additional paid-in capital. ............................................. 891 Total paid-in capital. .............................................. 1,436
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This note was uploaded on 09/11/2011 for the course ACCOUNTING 323 taught by Professor None during the Spring '10 term at Prince George's Community College, Largo.

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EXERCISE 15 - EXERCISE 15-7 (1520 minutes) Stockholders...

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