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Chapter 13

# Chapter 13 - BUSI1002 OPQ Introduction to Accounting...

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BUSI1002 OPQ Introduction to Accounting 2009-10 Semester 2 Chapter 13: Accounting for corporations Tutorial assignment solution Exercise 13-2 (15 minutes) 1. Feb. 20 Cash ....................................................................................... 182,700 Common Stock, No-Par Value ........................................ 182,700 Issued common stock for cash. 2. Feb. 20 Cash ....................................................................................... 182,700 Common Stock, \$12 Par Value* ...................................... 144,000 Paid-In Capital in Excess of Par Value, Common Stock** ......................................................... 38,700 Issued common stock for cash. *12,000 shares x \$12 per share = \$144,000 **\$182,700 - \$144,000 = \$38,700 3. Feb. 20 Cash ....................................................................................... 182,700 Common Stock, \$6 Stated Value* ................................... 72,000 Paid-In Capital in Excess of Stated Value, Common Stock** ......................................................... 110,700 Issued common stock for cash. *12,000 shares x \$6 per share = \$72,000 **\$182,700 - \$72,000 = \$110,700 Exercise 13-12 (25 minutes) 1. Net income ................................................................................................... \$1,375,500 Less preferred dividends .............................................................................. (192,500 ) Net income available to common stockholders ........................................... \$1,183,000 2. Net income available to common stockholders ........................................... \$1,183,000 Divided by weighted-average outstanding shares ....................................... 350,000 Basic earnings per share .............................................................................. \$ 3.38 Problem 13-1A (30 minutes) Part 1 a. To record sale of 10,000 (\$250,000/\$25 per share) shares of \$25 par value common stock for \$32 (\$320,000/10,000 shares) per share. b. To record issuance of 5,000 (\$125,000/\$25 per share) shares of \$25 par value common stock to

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