Issuance 100,000 Shares, $10 Par Value Common Stock, 50,000 Shares of Preferred Stock by cdi10450

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Issuance 100,000 Shares, $10 Par Value Common Stock, 50,000 Shares of Preferred Stock document sample

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									Chapter 11                                                                                                              Sheet1
Prob 11/3
                          Perkins Company
Date                      Assets    =               Liabilities +       S/E
                          Cash      C/S             Add'l P/I C/S Div/P R/E
     1-Feb                                           $ 20,000 $ 5,000     $ (25,000)

                          Declared 10% Stock Dividend: 5,000*.10*$10 Par Value=$5,000. Mkt. Value $50

     1-Mar                              $   5,000                $ (5,000)

                          Paid 10% Stock Div.

       1-Jul              No Entry

                          Declared 2 for 1 stock split

                                     0 $    5,000   $ 20,000     $     -       $ (25,000)

Shareholders' Equity for Perkins Co.                                                        12/31/1995
Pref Stock, $50 Par, 8%, 4,000 sh. Issued & out.                                             $ 200,000
C/S, $10 Par, 5,500 sh. Issued & Out.                                                        $ 55,000
Add'l P/I Capital                                                                            $ 320,000
Total Contributed Capital                                                                    $ 575,000
Retained Earnings                                                                            $ 375,000
Total Shareholders' Equuity                                                                  $ 950,000

                                                    Horton, Inc.
Prob 11/8                 Assets=                               t/b           Liabilities+ Shareholders' Equity                               t/b
                          Cash      Bldg            Land        =             C/S          Add'l P/I Treas Stk Div/P             R/E
a)                        $ 500,000                                             $ 100,000 $ 400,000

               Issued 100,000 sh. C/S @$5.00; 1,000,000 sh. authorized $1.00 Par.

b)                                      $ 20,000    $ 80,000                   $ 10,000     $ 90,000

               Issued 10,000 sh. common for land and bldg. Mkt value of stock $10/sh.

c)                         $ (16,000)                                                                    $ (16,000)

               Purchased 1,000 sh. common @ $16

d)                                                                                                                    $ 10,900   $ (10,900)

               Declared Div. of $.10/sh. common.
e)             Declared 2/1 Stock Split
f)                          $ 180,000                                                                                            $ 180,000
               Earnings of $180,000
                            $ 664,000 $ 20,000      $ 80,000     $ 764,000     $ 110,000    $ 490,000    $ (16,000) $ 10,900     $ 169,100    $ 764,000

Partial Balance Sheet
as of December 31, 1995
Common stock, 2,000 shares authorized,
 220,000 issued, 218,000 outstanding. $5 par value               $ 110,000
Additional paid-in capital                                       $ 490,000
Retained earnings                                                $ 169,100
Treasuary stock                                                  $ (16,000)
Total stockholders' equity                                       $ 753,100

Footnote: The company is authorized to issue 2,000,000 shares of common stock, $.50 par value. As of 12/31/95, 220,000 shares are issued, 218,000 are outstanding.
2,000 have been repurchased by the Company for future distribution. The figures presented reflect the retroactive treatment of a 2 for 1 stock split during the year.




                                                                                                                        Page 1
                                                                        Sheet2


Review Prob. Ch. 11
          Assets                    =         Liabilities +           S/E
          Cash      Patent          C/S       Add'l P/I   Pref        Add'l P/I   Treas/Stk Add'l T/S    Div/P       R/E
  15-Jan $ 250,000                   $ 50,000 $ 200,000

            Issued 10,000 sh common @ $25, Par $5.

             $ 110,000                                    $ 100,000   $ 10,000
            Issued 1,000 sh Pref. @ $110, Par $100, 8%.

    1-Apr               $ 60,000    $ 10,000   $ 50,000

            Acquired patent for 2,000 sh. Mkt $30/sh.

   1-May $ (10,000)                                                               $ (10,000)

            Repurchase 500 sh. common @ $20/sh.

   1-Jun $      5,000                                                             $   4,000    $ 1,000

            Sold 200 sh T/S @ $25

    1-Jul                                                                                        $ 11,700 $ (11,700)
                                                                                                 $ 8,000 $ (8,000)
         Declared Cash Div. of $1.00/sh. Comman(11,700 sh*$1.00) and 8% to Pref.1,000sh.*$100*.08)
                                                                                                 $ (11,700)
   1-Aug $ (19,700)                                                                              $ (8,000)

            Paid dividends

   1-Sep                                                  $ 10,000    $ 3,000                                        $ (13,000)

           Declared & Dist. 10% stock Div to Pref. Mkt Value $130(1,000 sh*$130*.10)
    31-Dec $ 200,000                                                                                                 $ 200,000
t/b        $ 535,300 $ 60,000 $ 60,000 $ 250,000 $ 110,000 $ 13,000 $ (6,000) $ 1,000                    $       -   $ 167,300

                        $ 595,300                                                                                    $ 595,300



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                                                                                                Sheet3




Problem 11-1                                                  Peeler Company


           Assets=               t/b        Liabilities+                   Shareholders' Equity                                                                                       t/b
Item       Cash       Bldg.                 Dividend Pay Common Stk Addl Paid-in Common Stk          Preferred Stk Addl Paid-in Pref Stk Treas Stk Addl Paid-in Tres Stk Ret Ear.
   10-Jan $ 50,000                                                                                    $     50,000
           $ 10,000                                                                                                $            10,000
Record issuance of 500 Shares, $100 par, 7% cumulative, non-participateing Preferred Stock @$120.

   10-Jan $ 320,000                                         $   20,000        $            300,000
Record issuance of 4,000 shares, $5 par value, common stock @$80.

   20-Jan              $ 70,000                                 $     5,000 $               65,000
Record issuance of 1,000 shares, $5 par value, to acquire building. Market price @ $70 .

  31-Dec $ (30,000)                                                                                                                       $ (30,000)
           $ 6,500                                                                                                                        $ 6,000 $                500
Record purchase of 500 shares Treasuary Stock @$60. Sale of 100 shares Treasuary Stock @$65.

  31-Dec $ 40,000                                                                                                                                                        $ 40,000
Record net income for year.

   31-Dec                                     $       3,500                                                                                                              $ (3,500)
                                              $      23,000                                                                                                              $ (23,000)
Record: Preferred dividend payable, 500 shares * $100 par value * 7%= $3,500.
       Common stock dividend payable, 4,600 shares outstanding * $5 per share= $23,000
           $ 396,500 $ 70,000 $ 466,500 $            26,500 $      25,000 $                365,000   $      50,000   $           10,000   $ (24,000) $             500   $ 13,500     $ 466,500

Partial Balance Sheet
Shareholders' Equity
as of 12/31/95

Preferred stock, $100 par, 7%, 1,000 authorized, 500 issued and outstanding                          $     50,000
Common stock, $5 par, 10,000 authorized, 5,000 issued, 4,600 outstanding.                            $     25,000
Additional paid-in Capital- Common stock                                                             $    365,000
Additional paid-in Capital- Preferred stock                                                          $     10,000
Additional Paid-in Capital-Treasuary stock                                                           $        500
Total contributed capital                                                                            $    450,500
Retained earnings                                                                                    $     13,500
Less: Treasuary stock, 400 shares common                                                             $    (24,000)
Total Stockholders' equity                                                                           $    440,000




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