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Unformatted text preview: ted for treasury stock transactions only when the stock is reissued for less than its acquisition cost, there is no treasury stock adjustment to Retained Earnings during 2011. d. Total dividends declared = $1,275,000 [from Part (c)] Dividends to Preferred Stockholders Dividends to Common Stockholders = = = = Dividends in Arrears + Current Dividends Dividends for 2010 + Dividends for 2011 ($400,000 10%) + ($400,000 10%) $80,000 = Total Dividends – Dividends to Preferred = $1,275,000 – $80,000 = $1,195,000 P12–11 Concluded e. Treasury Stock (–SE) 105,000 Cash (–A) 105,000 Purchased treasury stock. f. Cash (+A) Capital, Treasury Stock (+SE) Reissued treasury stock. g. Reissue Price per Share 90,000 Treasury Stock (+SE) 21,000 Additional Paid­in 69,000 = Cash Received ÷ Number of Shares Reissued = $90,000 [from part (f)] ÷ 300 Shares* = $300.00 per Share * The 300 shares reissued is computed as follows: 1. Cost of shares = $105,000 ÷ 1,500 shares = $70 per share 2. Number of s...
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This homework help was uploaded on 03/03/2014 for the course ACCT 5053 taught by Professor Staff during the Fall '08 term at Oklahoma State.

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