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sol 12 - EXERCISES Ex 121 Class 1st Year 2nd Year $1.50...

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EXERCISES Ex. 12–1 Class 1st Year 2nd Year 3rd Year 4th Year 5th Ye ar Preferred $1.50 $2.00 $2.00 $2.00 Common 0.20 1 0.64 2 0.80 3 1 $50,000 ÷ 250,000 2 $160,000 ÷ 250,000 3 $200,000 ÷ 250,000 Ex. 12–2 Class 1st Year 2nd Year 3rd Year 4th Year 5th Year Preferred $0.50 $4.00* $1.50 $1.50 Common .80 3.30 1.20 Total Dividends per Share *Third-year dividends: Dividends Preferred Arrears dividend, preferred ..................... $25,000 $2.50 Current dividend, preferred ..................... 15,000 1 .50 Total ..................................................... $40,000 $4 .00 Ex. 12–3 a. Mar. 10 Cash .............................................................. 900,000 Common Stock ........................................ 600,000 Paid-In Capital in Excess of Par— Common Stock ........................................ 300,000 Aug. 9 Cash .............................................................. 525,000 Preferred Stock ....................................... 500,000 Paid-In Capital in Excess of Par— Preferred Stock ....................................... 25,000 b. $1,425,000 ($900,000 + $525,000)
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Ex. 12–4 a. Nov. 2 Cash .............................................................. 375,000 Common Stock ........................................ 125,000 Paid-In Capital in Excess of Stated Value ............................................ 250,000 Dec. 3 Cash .............................................................. 65,000 Preferred Stock ....................................... 50,000 Paid-In Capital in Excess of Par— Preferred Stock ....................................... 15,000 b. $440,000 ($375,000 + $65,000) Ex. 12–5 Feb. 27 Land ...................................................................... 292,000 Common Stock ................................................ 40,000 Paid-In Capital in Excess of Par ..................... 252,000 Ex. 12–6 a. Cash ................................................................................ 20,000 Common Stock ......................................................... 20,000 b. Organization Costs ........................................................ 1,000 Common Stock ......................................................... 1,000 Cash .............................................................................. 19,000 Common Stock ......................................................... 19,000 c. Land .............................................................................. 45,000 Building .......................................................................... 150,000 Interest Payable* ...................................................... 1,000 Mortgage Note Payable ............................................ 125,000 Common Stock ......................................................... 69,000 *An acceptable alternative would be to credit Interest Expense.
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Ex. 12–7 Buildings ............................................................................... 95,000 Land ...................................................................................... 40,000 Preferred Stock ............................................................... 100,000 Paid-In Capital in Excess of Par— Preferred Stock ............................................................... 35,000 Cash ...................................................................................... 565,000 Common Stock ................................................................ 450,000 Paid-In Capital in Excess of Par— Common Stock ................................................................ 115,000 Ex. 12–8 Jan. 6 Cash ...................................................................... 250,000 Common Stock ................................................ 250,000 11 Organization Costs ............................................... 1,500 Common Stock ................................................ 1,500 Feb. 28 Land ...................................................................... 20,000 Buildings ............................................................... 100,000 Equipment ............................................................. 18,000 Common Stock ................................................ 115,000 Paid-In Capital in Excess of Par— Common Stock ................................................ 23,000 Mar. 15 Cash ...................................................................... 510,000 Preferred Stock ............................................... 500,000 Paid-In Capital in Excess of Par— Preferred Stock ............................................... 10,000
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Ex. 12–9 a. Mar. 1 Treasury Stock ............................................. 220,000 Cash ......................................................... 220,000 July 8 Cash .............................................................. 150,500 Treasury Stock ........................................ 140,000 Paid-In Capital from Sale of Treasury Stock ........................................ 10,500 Dec. 19 Cash .............................................................. 78,000 Paid-In Capital from Sale of Treasury Stock ............................................. 2,000 Treasury Stock ........................................ 80,000 b. $8,500 credit c. Stockholders' Equity section d. Chico Springs may have purchased the stock to support the market price of the stock, to provide shares for resale to employees, or for reissuance to employees as a bonus according to stock purchase agreements. Ex. 12–10 a. Sept. 6 Treasury Stock ............................................. 540,000 Cash ......................................................... 540,000 Nov. 15 Cash .............................................................. 186,000 Treasury Stock ........................................ 180,000 Paid-In Capital from Sale of Treasury Stock .................................... 6,000 Dec. 21 Cash .............................................................. 273,000 Treasury Stock ........................................ 270,000 Paid-In Capital from Sale of Treasury Stock .................................... 3,000 b. $9,000 credit c. $90,000 debit d. The balance in the treasury stock account is reported as a deduction from the total of the paid-in capital and retained earnings.
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Ex. 12–11 a. July 1 Treasury Stock ............................................. 120,000 Cash ......................................................... 120,000 Aug. 10 Cash .............................................................. 64,500 Treasury Stock ........................................ 60,000 Paid-In Capital from Sale of Treasury Stock ........................................ 4,500 Dec. 19 Cash .............................................................. 58,500 Paid-In Capital from Sale of Treasury Stock ............................................. 1,500 Treasury Stock ........................................ 60,000 b. $3,000 credit c.
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