HW_11_Solutions

# HW_11_Solutions - Solutions to Homework 11 Raffaele B....

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Solutions to Homework 11 Due November 23, 2010 Raffaele B. Mari, CPA Econ 25 – Econ of Acctg. EXERCISE 11-4 (a) Common stock outstanding is 592,000 shares. (Issued shares 600,000 less treasury shares 8,000.) (b) The stated value of the common stock is \$3.50 per share. (Common stock issued \$2,100,000 ÷ 600,000 shares.) (c) The par value of the preferred stock is \$100 per share. (Preferred stock \$600,000 ÷ 6,000 shares.) (d) The dividend rate is 6% (\$36,000 ÷ \$600,000). (e) The Retained Earnings balance is still \$1,158,000. Cumulative dividends in arrears are only disclosed in the notes to the financial statements.

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Solutions to Homework 11 Due November 23, 2010 Raffaele B. Mari, CPA Econ 25 – Econ of Acctg. EXERCISE 11-10 ROSSWELL INC. Partial Balance Sheet December 31, 2010 Stockholders’ equity Paid-in capital Capital stock 8% Preferred stock, \$50 par value, 40,000 shares authorized, 12,000 shares issued . ....................... \$ 600,000 Common stock, no-par, \$1 stated value, 400,000 shares authorized,
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## This note was uploaded on 12/13/2011 for the course ECON 15A taught by Professor Shirey during the Fall '08 term at UC Irvine.

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HW_11_Solutions - Solutions to Homework 11 Raffaele B....

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