Issued 6000 shares at 25 per share sell prsh par val

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Applied Calculus for the Managerial, Life, and Social Sciences
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Chapter 6 / Exercise 41
Applied Calculus for the Managerial, Life, and Social Sciences
Tan
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(Issued 6,000 shares at $25 per share)*(Sell. pr./sh. – par val./ sh.) × 6,000(b)(1)Preferred stock—$80,000 + $60,000 = $140,000.(2)Paid-in Capital in Excess of Par Value—Preferred Stock—$112,000 + $90,000 =$202,000.Be. 220The Huntsman Corporation has the following stockholders’ equity accounts:Preferred StockPaid-in Capital in Excess of Par Value—Preferred StockCommon StockPaid-in Capital in Excess of Stated Value—Common StockRetained EarningsTreasury Stock—CommonInstructionsClassify each account using the following tabular alignment.Paid-in CapitalRetainedAccountCapital StockAdditionalEarningsOtherAns: N/A, LO: 4, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC:Problem Solving, IMA: ReportingSolution 220(5–9 min.)Paid-in CapitalRetainedAccountCapital StockAdditionalEarningsOtherPreferred StockXPaid-in Capital in Excess of Par Value—Preferred StockXCommon StockXPaid-in Capital in Excess of Stated Value—Common StockXRetained EarningsXTreasury Stock—CommonX
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Applied Calculus for the Managerial, Life, and Social Sciences
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Chapter 6 / Exercise 41
Applied Calculus for the Managerial, Life, and Social Sciences
Tan
Expert Verified
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Be. 221Lindy Corporation has 1,000,000 authorized shares of $20 par value common stock. As of June30, 2017, there were 600,000 shares issued and outstanding. On June 30, 2017, the board ofdirectors declared a $0.50 per share cash dividend to be paid on August 1, 2017.InstructionsPrepare the necessary journal entries to be recorded on (a) the date of declaration, (b) the dateof record, and (c) the date of payment.Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 7, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPAPC: Problem Solving, IMA: FSASolution 221(7–10 min.)(a)Cash Dividends............................................................................300,000Dividends Payable...............................................................300,000600,000 ×$.50 = $300,000(sh. out. ×div./sh.)(b)No entry(c)Dividends Payable........................................................................300,000Cash....................................................................................300,000Be. 222On November 1, 2017, Kalen Corporation’s stockholders’ equity section is as follows:Common stock, $10 par value$600,000Paid-in capital in excess of par value—Common Stock180,000Retained earnings200,000Total stockholders’ equity$980,000On November 1, Kalen declares and distributes a 15% stock dividend when the fair value of thestock is $16 per share.InstructionsIndicate the balances in the stockholders’ equity accounts after the stock dividend has beendistributed.Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC:Problem Solving, IMA: ReportingSolution 222(5 min.)Common Stock$690,000* Paid-in Capital in Excess of Par Value—Common Stock234,000**Retained Earnings56,000***Total Stockholders’ Equity$980,000*$600,000+ (60,000 ×.15 ×$10) [Tot. PV + ((Tot. PV ÷ PV/sh) ×div.% ×PV/sh.)]**$180,000+ (60,000 ×.15 ×$6)***$200,000– (60,000 ×.15 ×$16) [Beg. R/E + ((Tot. PV ÷ PV/sh) ×div.% ×FV/sh.)]
Be. 223Listed below are items typically found in the stockholders' equity section of the balance sheet.Common stock, $10 stated valueRetained earnings8% Preferred stock, $100 par valuePaid-in capital in excess of par value—preferred StockPaid-in capital in excess of stated value—common StockTreasury stock—commonStockholders’ equityPaid-in capitalCapital stockAdditional paid-in capitalTotal additional paid-in capitalTotal paid-in capitalRetained earnings

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