POA11e12 - CHAPTER 12Solutions CONTRIBUTED CAPITAL Chapter...

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Ch12 SE1 to SE4 CONTRIBUTED CAPITAL Chapter 12, SE 1. 1. c 5. e 2. a 6. a 3. b 4. d Chapter 12, SE 2. 1. Advantage 4. Advantage 2. Disadvantage 5. Disadvantage 3. Advantage 6. Advantage Chapter 12, SE 3. Start-up and organization costs: Legal services, 12,000 shares of $1 par value common stock $20,000 Incorporation fees 12,000 Total start-up and organization costs $32,000 Income statement effect: Start-up and organization costs ($32,000) Balance sheet effect: Retained earnings ($32,000) Chapter 12, SE 4. June 6 Cash 160,000 Common Stock 20,000 Additional Paid-in Capital 140,000 Issued 20,000 shares of $1 par value common stock under employee stock option plan CHAPTER 12 Solutions
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Ch12 SE5 to SE6 Chapter 12, SE 5. Fina Corporation Balance Sheet December 31, 2011 Stockholders' Equity Contributed capital Common stock, $10 par value, 30,000 shares authorized, 20,000 shares issued, and 19,500 shares outstanding $200,000 Additional paid-in capital 100,000 Total contributed capital $300,000 Retained earnings 15,000 Total contributed capital and retained earnings $315,000 Less treasury stock, common (500 shares, at cost) 7,500 Total stockholders' equity $307,500 Chapter 12, SE 6. Cash Dividends Payable Jun. 15 28,000 Jun. 15 28,000 May 15 28,000 Dividends May 15 28,000 * Note: No entry necessary for June 1. 140,000 shares outstanding × $0.20 per share *
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Ch12 SE7 Chapter 12, SE 7. Preferred Stock Common Stock Dividends Dividends Total Per Per Dividends Amount Share Amount Share Allocated 2010 2011 2010 dividends in arrears $16,000 ( $200,000 × 0.08 ) 2011 dividends ( $200,000 × 0.08 ) 16,000 ( $40,000 $32,000 ) $ 8,000 Totals $32,000 $16.00 $ 8,000 $0.20 $40,000 2012 2012 dividends ( $200,000 × 0.08 ) $16,000 ( $80,000 $16,000 ) $64,000 Totals $16,000 $ 8.00 $64,000 $1.60 $80,000
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Ch12 SE8 to SE9 Chapter 12, SE 8. 1. Cash 30,000 Common Stock 12,500 Additional Paid-in Capital 17,500 Issued 2,500 shares of $5 par value common stock at $12 per share 2. Cash 30,000 Common Stock 2,500 Additional Paid-in Capital 27,500 Issued 2,500 shares of $1 stated value common stock at $12 per share Chapter 12, SE 9. 1. Land 224,000 Common Stock 32,000 Additional Paid-in Capital 192,000 Issued 32,000 shares of $1 par value common stock for land; market value of common stock used to value transaction 32,000 shares at $7 = $224,000 2. Land 200,000 Common Stock 32,000 Additional Paid-in Capital 168,000 Issued 32,000 shares of $1 par value common stock for land; market value of land used to value transaction
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Ch12 SE10 to SE11 Chapter 12, SE 10. Oct. 1 Treasury Stock, Common 40,000 Cash 40,000 Acquired 2,000 shares of company's common stock for $40,000 ( 2,000 × $20 per share ) 17 Cash 12,500 Treasury Stock, Common 10,000 Paid-in Capital, Treasury Stock 2,500 Sold 500 shares of treasury stock for $12,500 ( 500 × $25 per share); cost was $10,000 ( 500 × $20 per share) Chapter 12, SE 11. Oct.
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This note was uploaded on 11/02/2011 for the course ACCT 210 taught by Professor Mcgonigal during the Spring '11 term at E. Washington.

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POA11e12 - CHAPTER 12Solutions CONTRIBUTED CAPITAL Chapter...

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