Week12_ch11_solutions ( 2nd revision) [Uploaded]

Week12_ch11_solutions ( 2nd revision) [Uploaded] - FB2100...

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FB2100 – Accounting I – Semester A 2010 Solutions to Assigned Questions – Week 11 – Chapter 11 Quick Study 11-6 (5 minutes) 1. Cash* . ............................................................................ 510,000 Preferred Stock, $100 Par Value** . ........................ 500,000 Paid-In Capital in Excess of Par Value, Preferred Stock*** . ............................................... 10,000 Issued par value stock for cash. *5,000 x $102 = $510,000 **5,000 x $100 = $500,000 ***$510,000 - $500,000 = $10,000 2. Preferred dividend = $100 par value/share x 7% x 5,000 shares = $35,000 Quick Study 11-9 (10 minutes) Total cash dividend . ........................................................................ $110,000 To preferred shareholders . ............................................................. 64,000* Remainder to common shareholders . ........................................... $ 46,000 *80,000 shares x $5 par x .08 x 2 years = $64,000. Exercise 11-2 (15 minutes) 1. Feb. 20 Cash . ....................................................................... 152,000 Common Stock, No-Par Value . ....................... 152,000 Issued common stock for cash. 2. Feb. 20 Cash . ....................................................................... 152,000 Common Stock, $2 Par Value* . ...................... 38,000 Paid-In Capital in Excess of Par Value, Common Stock** . ......................................... 114,000 Issued common stock for cash. *19,000 shares x $2 per share = $38,000 **$152,000 - $38,000 = $114,000 3. Feb. 20 Cash . ....................................................................... 152,000 Common Stock, $5 Stated Value* . ................. 95,000 Paid-In Capital in Excess of Stated Value, Common Stock** . ......................................... 57,000 Issued common stock for cash. *19,000 shares x $5 per share = $95,000 **$152,000 - $95,000 = $57,000
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FB2100 – Accounting I – Semester A 2010 Solutions to Assigned Questions – Week 11 – Chapter 11 Exercise 11-6 (20 minutes) 1. a. Retained earnings Before dividend . ................................................................... $ 660,000 $10 par value of 25,000 dividend shares . .......................... (250,000) After dividend . ...................................................................... $ 410,000 b. Total stockholders’ equity Common stock $10 par value, 120,000 shares authorized, 75,000 shares issued and outstanding . ...... $ 750,000
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Week12_ch11_solutions ( 2nd revision) [Uploaded] - FB2100...

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