P15-6 & 16-7 - @97 purchase(280 shares 27,[email protected]..

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P15-6 (a) (1) Treasury Stock (280x$97) 27,160 Cash 27,160 (2) Retained Earnings 90,400 Dividends Payable 90,400 (3) Dividends Payable 90,400 Cash 90,400 (4) Cash 28,560 Treasury Stock 27,160 Paid-in Capital-Treasury Stock 1,400 (5) Treasury Stock 52,500 Cash 52,500 (6) Cash 33,600 Retained Earnings 3,150 Treasury Stock 36,750 (b) WASHINGTON COMPANY Stockholders’ Equity 2011 Common stock, $100par value, 8,000shares issued, 7,850 outstanding $480,000 Paid-in capital from treasury stock 18,900 Retained earnings* 389,750
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888,650 Less: Treasury stock (150 shares)** (20,300) Total stockholders’ equity $868,350 *Retained earnings (beginning balance) $294,000 Reissuance @ 102 (1,400) Reissuance @ 96 3,150 Net income for period 94,000 Retained earnings (ending balance) $389,750 **Treasury stock (beginning balance)
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Unformatted text preview: @97 purchase (280 shares) 27,160 @102 sale (280 shares) (28,560) @105 sale (500 shares) (52,500) @96 purchase (350 shares) 33,600 Treasury stock (ending balance) (20,300) P16-7 (a) 2,000,000 x 1.05 (5% stock dividend) = 2,100,000 2,100,000 x 2 (2 for 1 stock dividend) = 4,200,000 (b) 2,000,000 x 1.05 (5% stock dividend) = 2,100,000 x 3/12 = 525,000 2,100,000 + 400,000 = 2,500,000 x 3/12 = 625,000 2,500,000 x 2 (2 for 1 stock dividend) = 5,000,000 x 1/12 = 416,667 5,000,000 + 300,000 = 5,300,000 x 3/12 = 1,325,000 5,300,000 – 24,000 = 5,276,000 x 2/12 = 879,335 3,771,002 (c) 11,550,000 x (1/(1-.40) = 19,250,000 – 1,425,000 (preferred stock dividends) = 17,825,000...
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This note was uploaded on 09/29/2011 for the course ACC 302 taught by Professor Smith during the Spring '11 term at University of Phoenix.

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P15-6 & 16-7 - @97 purchase(280 shares 27,[email protected]..

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