Paid in capital in excess of parcommon stock 1300000 Paid in capital from

Paid in capital in excess of parcommon stock 1300000

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Paid-in capital in excess of par—common stock ....................................................... 1,300,000 Paid-in capital from treasury stock ............................................................................. 160,000 Total paid-in capital .......................................................................................... $ 2,160,000 Retained earnings .................................................................................................................................. 301,000 Total paid-in capital and retained earnings .................................................................................. $ 2,461,000 Less: Treasury stock, 10,000 shares at cost ............................................................................... 170,000 Total stockholders’ equity ............................................................................................... $ 2,291,000
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8 EXERCISE 15-18 (15 th edition) (a) 1. Dividends Payable ............................................................................................................ 60,000 Cash .................................................................................................................... 60,000 [P/S: (2,000 sh X 10% x $100 par/sh = $20,000] + [C/S: 20,000 sh X $2 div/sh = $40,000)] 2. Treasury Stock .............................................................................................................. 68,000 Cash (1,700 shares X $40 cost/share) .................................................................. 68,000 3. Land (at FMV) ................................................................................................................... 30,000 Treasury Stock (700 shares X $40 cost/share) ................................................ 28,000 Paid-in Capital - Treasury Stock (plug) ...................................................... 2,000 4. Cash (500 shares issued X $105 market price/share) .......................................................... 52,500 Preferred Stock (500 shares X $100 par/share) .............................................. 50,000 Paid-in Capital in Excess of Par—P/S (plug) 2,500 5. Retained Earnings ((19,000* shares outstanding x 10% = 1,900 shares) X $45 mkt price/sh) ............... 85,500 C/S Dividend Distributable (19,000 shares x 10% = 1,900 shares) x $5 pa/sh) 9,500 Paid-in Capital in Excess of Par—C/S 76,000 {*Number of outstanding shares (20,000 BB – 1,700 from #2 + 700 from #3 = 19,000 shares} 6. Common Stock Dividend Distributable .................................................................... 9,500 Common Stock .................................................................................................. 9,500 7. Retained Earnings ......................................................................................................... 66,800 Dividends Payable ........................................................................................... 66,800 [(P/S (2,500 sh x 10% x $100 par/sh= $25,000) + (C/S (19,000 + 1,900 shares) X $2 div/sh = $41,800)] (b) ELIZABETH COMPANY Stockholders’ Equity December 31, 2014 Paid In Capital: Preferred stock, 10%, $100 par, 10,000 shares authorized, 2,500 shares issued and outstanding ..................................................... $250,000 Common stock, $5 par, 100,000 shares authorized 21,900 shares issued, 20,900 shares outstanding .............................. 109,500 Additional paid-in capital – Preferred Stock ........................................... 2,500 Additional paid-in capital – Common Stock ............................................... 201,000 Additional paid-in capital – Treasury Stock ............................................. 2,000 Total paid-in capital .............................................................................. $560,000 Retained earnings ........................................................................................................ 627,700 Total paid-in capital and retained earnings ............................................................ $1,192,700 Less: Cost of treasury stock (1,000 shares common) ............................................. 40,000 Total stockholders’ equity .......................................................................................... $1,152,700 Computations: Preferred stock: $200,000 + $50,000 = $250,000 Common stock: $100,000 + $9,500 = $109,500 Additional paid-in capital – Common Stock: $125,000 + $76,000 = $201, 000 Note: (I am assuming that the PIC of $125,000 from the start of the problem pertained only to the C/S. Retained earnings: $450,000 – $85,500 – $66,800 + 2014 NI of $330,000 = $627,700 Treasury stock: $0 + $68,000 – $28,000 = $40,000
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ACCO 4020 Chapter 15 Homework Solutions (15 th edition) Kren 9 *EXERCISE 15-21 (15thedition) Facts: The outstanding capital of Edna Millay Corporation consists of: 2,000 shares of $100 par value, 8% preferred stock $200,000 5,000 shares of $50 par value common stock $250,000 Assuming that the company has RE of $90,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, determine how much each class of stock should receive under each of the following conditions: (a) The preferred stock is noncumulative and nonparticipating. (b) The preferred stock is cumulative and nonparticipating. (c) The preferred stock is cumulative and participating. (Round dividend rate percentages to 4 decimal places.)
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