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SID-6. (Learning Objective 2: Issuing sharespar value share and no-par share) At scal - I year-end 2010, Harry Printer and Delightful Doughnuts...

Need help with the following 3 questions! Thanks in advance!



SID-6. (Learning Objective 2: Issuing shares—par value share and no-par share) At fiscal - I
year-end 2010, Harry Printer and Delightful Doughnuts reported these adapted amounts on
their Balance Sheets (amounts in millions): :__—2 Ordinary shares 1 cent par value 2 400 shares issued
Additional naid-' -In caital 17 200 A
:_ Deli_htful Dou_hnuts —
'__-_ Ordina shares no-ar value 64 shares issued
_—— Assume each company issued its shares in a single transaction. Journalize each company’s
issuance of its shares, using its actual account titles. Explanations are not required. Sill-‘1. (Learning Obiective 2: Issuing shares to finance the uni-chase nfassetsl This short - I


S 10-10. (Learning Objective 3: Accounting for the purchase and sale of treasury shares)
Newton Marketing Corporation reported the following shareholders‘ equity at December 31
(adapted and in millions): Ordinary share" $ 225
Additional paid-in capitalm 245
Retained earnings... 2,149
Treasury share... (621}
Total shareholders equity... $11998 During the next year. Newton Marketing purchased treasury shares at a cost of $24 million
and resold treasury shares for $6 million (this treasury share had cost Newton Marketing
$2 million). Record the purchase and resale of Newton Marketing’s treasury shares. Overall.
how much did shareholders’ equity increase or decrease as a result of the two treasury share


SID-13. (Learning Objective 4: Dividing cash dividends between preference and ordinary shares) Access Garde. lnc.. has 200.000 shares of $1.60 preference shares outstanding in
addition to its ordinary shares. The $1.60 designation means that the preference shareholders receive an annual cash dividend of $1.60 per share. In 20X6, Access Garde declares an annual
dividend of $450,000. The allocation to preference and ordinary shareholders is: Preference dividend, (200,000 shares X $1.60 per share)........... $320,000
Ordinary dividend (remainder: $500,000 "- $370,000) 130,000
Total dmdend $450,000 Answer these questions about Access Garde's cash dividends. 1. How much in dividends must Access Garde declare each year before the ordinary share-
holders receive any cash dividends for the year? 2. Suppose Access Garde. lnc.. declares cash dividends of $350,000 for 20X6. How much of the dividends goes to preference? How much goes to ordinary? Is Access Garde’s preference shares cumulative or non-cumulative? How can you tell? Access Garde. lnc., passed the preference dividend in 20x5 and 20X6. Then in 20x7. Access Garde declared cash dividends of $1,400,000. How much of the dividends goes to preference? How much goes to ordinary? .3.“

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