Chapter 11, Problem 1ACOMP

1.

To determine

Calculate the payment made to the holders of preferred stock and to determine the payment made to the common stockholders.

2.

To determine

Ascertain the number of shares of common stock that was outstanding

3.

To determine

Journalize the sale of 1,000 shares of treasury stock for $25 per share and if the treasury stock was repurchased at $20 per share.

4.

To determine

Describe the way the balance sheet equation (Assets = liabilities + capital) would be affected after declaration of 2-for-1 stock split by Incorporation R.