sol 12 - EXERCISES Ex 12–1 Class 1st Year 2nd Year 3rd...

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Unformatted text preview: 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) 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. Ex. 12–7 Buildings............................................................................... 95,000 Land......................................................................................Land....
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This note was uploaded on 01/15/2012 for the course ACC 305 taught by Professor Williams during the Spring '11 term at University of Phoenix.

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sol 12 - EXERCISES Ex 12–1 Class 1st Year 2nd Year 3rd...

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