Financial Accounting
9th Edition
ISBN: 9781259738692
Author: Libby
Publisher: MCG
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Chapter 11, Problem 1ACOMP
Case A: The charter for Rogers, Incorporated, authorized the following stock:
Common stock, $10 par value, 103,000 shares authorized
The company sold 40,000 shares of common stock and 3,000 shares of preferred stock. During the year, the following selected transactions were completed in the order given:
- 1. Rogers declared and paid dividends in the amount of $ 10,000. How much was paid to the holders of preferred stock? How much was paid to the common stockholders?
- 2. Rogers repurchased 5,000 shares of common stock. After this transaction, how many shares of common stock were outstanding?
- 3. Provide the
journal entry if Rogers sold 1,000 shares oftreasury stock for $25 per share. The treasury stock was repurchased at $20 per share. - 4. Describe how the
balance sheet equation (assets = liabilities + stockholders’ equity) would be affected if Rogers declared a 2-for-l stock split.
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Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1 parvalue. During its first year, the following selected transactions were completed:a. Issued 6,000 shares of common stock for cash at $20 per share.b. Issued 2,000 shares of common stock for cash at $23 per share.Required:1. Show the effects of each transaction on the accounting equation.2. Give the journal entry required for each of these transactions.3. Prepare the stockholders’ equity section as it should be reported on the year-end balancesheet. At year-end, the accounts reflected a profit of $100.4. Incentive Corporation has $30,000 in the company’s bank account. What is the maximumamount of cash dividends the company can declare and distribute?
Lucas Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:
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Preferred stock, 14 percent, par value $10 per share, 4,500 shares authorized
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a. Sold and issued 21,500 shares of common stock at $20 cash per share.
b. Sold and issued 2,400 shares of preferred stock at $24 cash per share.
c. At the end of the year, the company reported net income of $41,500. No dividends were declared.
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1. Prepare the stockholders' equity section of the balance sheet at the end of the year.
Stockholders' equity:
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Total contributed capital
Total stockholders' equity
LUCAS COMPANY
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Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions:
Jan. 31
Issued 41,000 shares at $10 share.
Jun. 10
Issued 150,000 shares in exchange for land with a clearly determined value of $850,000.
Aug. 3
Purchased 8,000 shares of treasury stock at $8 per share.
A. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank.
Jan. 31
Cash
fill in the blank 6111daf96023f8f_2
fill in the blank 6111daf96023f8f_3
Common Stock
fill in the blank 6111daf96023f8f_5
fill in the blank 6111daf96023f8f_6
Additional Paid-in Capital from Common Stock
fill in the blank 6111daf96023f8f_8
fill in the blank 6111daf96023f8f_9
Jun. 10
Land
fill in the blank 6111daf96023f8f_11
fill in the blank 6111daf96023f8f_12
Common Stock
fill in the blank 6111daf96023f8f_14
fill in the blank 6111daf96023f8f_15
Additional Paid-in…
Chapter 11 Solutions
Financial Accounting
Ch. 11 - Prob. 1QCh. 11 - Prob. 2QCh. 11 - Explain each of the following terms: (a)...Ch. 11 - Differentiate between common stock and preferred...Ch. 11 - Explain the distinction between par value and...Ch. 11 - Define additional paid-in capital.Ch. 11 - Prob. 7QCh. 11 - Define treasury stock. Why do corporations acquire...Ch. 11 - How is treasury stock reported on the balance...Ch. 11 - What are the two basic requirements to support the...
Ch. 11 - Prob. 11QCh. 11 - Prob. 12QCh. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Katz Corporation has issued 400,000 shares of...Ch. 11 - Prob. 2MCQCh. 11 - Which of the following statements about stock...Ch. 11 - Prob. 4MCQCh. 11 - Prob. 5MCQCh. 11 - Prob. 6MCQCh. 11 - Prob. 7MCQCh. 11 - Which statement regarding dividends is false? a....Ch. 11 - Prob. 9MCQCh. 11 - Prob. 10MCQCh. 11 - Sources of Equity and Retained Earnings LO11-1...Ch. 11 - Computing the Number of Unissued Shares The...Ch. 11 - Earnings per Share Ratio How is the earnings per...Ch. 11 - Recording the Sale of Common Stock To expand...Ch. 11 - Prob. 11.5MECh. 11 - Determining the Effects of Treasury Stock...Ch. 11 - Determining the Amount of a Dividend Cole Company...Ch. 11 - Prob. 11.8MECh. 11 - Dividend Yield Ratio How is the dividend yield...Ch. 11 - Prob. 11.10MECh. 11 - Prob. 11.11MECh. 11 - Computing Shares Outstanding In a recent annual...Ch. 11 - Computing Number of Shares The charter of Vista...Ch. 11 - Prob. 11.3ECh. 11 - Reporting Stockholders Equity The financial...Ch. 11 - Reporting Stockholders Equity and Determining...Ch. 11 - Finding Amounts Missing from the Stockholders...Ch. 11 - Prob. 11.7ECh. 11 - Reporting Stockholders Equity Ruths Chris...Ch. 11 - Determining the Effects of Transactions on...Ch. 11 - Prob. 11.10ECh. 11 - Prob. 11.11ECh. 11 - Prob. 11.12ECh. 11 - Prob. 11.13ECh. 11 - Preparing the Stockholders Equity Section of the...Ch. 11 - Recording and Analyzing Treasury Stock...Ch. 11 - Prob. 11.16ECh. 11 - Prob. 11.17ECh. 11 - Computing Dividends on Preferred Stock and...Ch. 11 - Prob. 11.19ECh. 11 - Prob. 11.20ECh. 11 - Prob. 11.21ECh. 11 - Prob. 11.22ECh. 11 - Prob. 11.23ECh. 11 - Prob. 11.24ECh. 11 - Prob. 11.25ECh. 11 - Finding Missing Amounts At the end of the year,...Ch. 11 - Preparing the Stockholders Equity Section of the...Ch. 11 - Recording Transactions Affecting Stockholders...Ch. 11 - Prob. 11.4PCh. 11 - Prob. 11.5PCh. 11 - Prob. 11.6PCh. 11 - Analyzing Treasury Stock Transactions Apple Inc....Ch. 11 - Comparing Stock and Cash Dividends Chicago Company...Ch. 11 - Prob. 11.9PCh. 11 - Prob. 11.10PCh. 11 - Recording and Comparing Cash Dividends, Stock...Ch. 11 - Prob. 11.12PCh. 11 - Prob. 11.1APCh. 11 - Prob. 11.2APCh. 11 - Prob. 11.3APCh. 11 - Prob. 11.4APCh. 11 - Recording and Reporting Stockholders Equity...Ch. 11 - Case A: The charter for Rogers, Incorporated,...Ch. 11 - Prob. 1BCOMPCh. 11 - Prob. 1CCOMPCh. 11 - Prob. 1DCOMPCh. 11 - Prob. 11.1CPCh. 11 - Prob. 11.2CPCh. 11 - Prob. 11.3CPCh. 11 - Computing Dividends for an Actual Company A recent...Ch. 11 - Prob. 11.5CPCh. 11 - Prob. 11.6CP
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