Beruflich Dokumente
Kultur Dokumente
Ex. 121
Class
1st Year
2nd Year
$1.50
Preferred
Common
3rd Year
4th Year
5th Year
$2.00
0.201
$2.00
0.642
$2.00
0.803
3rd Year
4th Year
5th Year
$1.50
3.30
$1.50
1.20
$50,000 250,000
$160,000 250,000
3
$200,000 250,000
2
Ex. 122
Class
1st Year
2nd Year
$0.50
Preferred
Common
*Third-year dividends:
Arrears dividend, preferred......................
Current dividend, preferred......................
Total.......................................................
$4.00*
.80
Total
Dividends
$25,000
15,000
$40,000
$2.50
1.50
$4.00
Ex. 123
a. Mar.
Aug.
10 Cash................................................................
Common Stock.........................................
Paid-In Capital in Excess of Par
Common Stock.........................................
900,000
9 Cash................................................................
Preferred Stock.........................................
Paid-In Capital in Excess of Par
Preferred Stock.........................................
525,000
600,000
300,000
500,000
25,000
Ex. 124
a. Nov.
Dec.
2 Cash................................................................
Common Stock.........................................
Paid-In Capital in Excess of
Stated Value..............................................
375,000
3 Cash................................................................
Preferred Stock.........................................
Paid-In Capital in Excess of Par
Preferred Stock.........................................
65,000
125,000
250,000
50,000
15,000
Ex. 125
Feb. 27 Land.........................................................................
Common Stock.................................................
Paid-In Capital in Excess of Par......................
292,000
40,000
252,000
Ex. 126
a.
Cash..................................................................................
Common Stock...........................................................
20,000
b. Organization Costs..........................................................
Common Stock...........................................................
1,000
Cash ................................................................................
Common Stock...........................................................
19,000
Land ................................................................................
Building............................................................................
Interest Payable*........................................................
Mortgage Note Payable.............................................
Common Stock...........................................................
45,000
150,000
c.
20,000
1,000
19,000
1,000
125,000
69,000
Ex. 127
Buildings.................................................................................
Land.........................................................................................
Preferred Stock.................................................................
Paid-In Capital in Excess of Par
Preferred Stock.................................................................
95,000
40,000
Cash.........................................................................................
Common Stock..................................................................
Paid-In Capital in Excess of Par
Common Stock..................................................................
565,000
100,000
35,000
450,000
115,000
Ex. 128
Jan.
6 Cash........................................................................
Common Stock.................................................
250,000
11 Organization Costs................................................
Common Stock.................................................
1,500
Feb. 28 Land.........................................................................
Buildings.................................................................
Equipment...............................................................
Common Stock.................................................
Paid-In Capital in Excess of Par
Common Stock.................................................
20,000
100,000
18,000
Mar. 15 Cash........................................................................
Preferred Stock.................................................
Paid-In Capital in Excess of Par
Preferred Stock.................................................
510,000
250,000
1,500
115,000
23,000
500,000
10,000
Ex. 129
a. Mar.
July
Dec.
1 Treasury Stock...............................................
Cash...........................................................
220,000
8 Cash................................................................
Treasury Stock..........................................
Paid-In Capital from Sale of
Treasury Stock..........................................
150,500
19 Cash................................................................
Paid-In Capital from Sale of
Treasury Stock...............................................
Treasury Stock..........................................
78,000
220,000
140,000
10,500
2,000
80,000
b. $8,500 credit
c. Stockholders' Equity section
d. Chico Springs may have purchased the stock to support the market price of
the stock, to provide shares for resale to employees, or for reissuance to
employees as a bonus according to stock purchase agreements.
Ex. 1210
a. Sept.
Nov.
Dec.
6 Treasury Stock...............................................
Cash...........................................................
540,000
15 Cash................................................................
Treasury Stock..........................................
Paid-In Capital from Sale
of Treasury Stock.....................................
186,000
21 Cash................................................................
Treasury Stock..........................................
Paid-In Capital from Sale
of Treasury Stock.....................................
273,000
540,000
180,000
6,000
270,000
3,000
b. $9,000 credit
c. $90,000 debit
d. The balance in the treasury stock account is reported as a deduction from the
total of the paid-in capital and retained earnings.
Ex. 1211
a. July
Aug.
Dec.
1 Treasury Stock...............................................
Cash...........................................................
120,000
10 Cash................................................................
Treasury Stock..........................................
Paid-In Capital from Sale of
Treasury Stock..........................................
64,500
19 Cash................................................................
Paid-In Capital from Sale of
Treasury Stock...............................................
Treasury Stock..........................................
58,500
120,000
60,000
4,500
1,500
60,000
b. $3,000 credit
c. Stockholders Equity section
d. Heavenly Inc. may have purchased the stock to support the market price of
the stock, to provide shares for resale to employees, or for reissuance to
employees as a bonus according to stock purchase agreements.
Ex. 1212
a. 90,000 shares (30,000 3)
b. $40 per share ($120 3)
Ex. 1213
Assets
(1)
(2)
(3)
(4)
(5)
Stockholders
Liabilities
Equity
0
0
0
+
Ex. 1214
Jan.
4 Cash Dividends......................................................
Cash Dividends Payable..................................
Feb.
3 No entry required.
Mar.
75,000
75,000
75,000
75,000
Ex. 1215
a.
4,560
3,000
b. (1) $362,500
(2) $471,000
(3) $833,500
c. (1) $367,060
(2) $466,440
(3) $833,500
3,000
1,560
3,000
Ex. 1216
Jan.
Mar.
1 Cash Dividends......................................................
Cash Dividends Payable..................................
36,000*
36,000
36,000
Nov.
66,000*
1 Cash Dividends......................................................
Cash Dividends Payable..................................
36,000
66,000
60,000**
50,000
10,000
66,000
50,000
66,000
50,000
Ex. 1217
a. Cisco Systems, Inc., paid no dividends in 2000 and 1999. In its annual report,
Cisco Systems states that it has never paid cash dividends and has no
present plans to do so.
b. Investors are apparently attracted to Cisco Systems, Inc., because their main
objective is a rapid increase in the market price of the stock.
Ex. 1218
a. 2.1% ($1.00 $47.44)
b. Hersheys dividend yield is relatively low. Thus, it is likely that most
stockholders are looking for an increase in market price rather than current
dividends.
PROBLEMS
Prob. 121A
1.
Preferred Dividends
Year
Total
Dividends
Total
Per Share
$32,000
65,000
84,000
60,000
72,000
95,000
$32,000
65,000
53,000*
50,000
50,000
50,000
$ 1.28
2.60
2.12
2.00
2.00
2.00
$ 12.00
1999........................
2000........................
2001........................
2002........................
2003........................
2004........................
Common Dividends
Total
$
0
0
31,000
10,000
22,000
45,000
Preferred
Dividends
* Arrears dividend, preferred........................................
Current dividend, preferred........................................
Total..........................................................................
$ 3,000
50,000
$53,000
a.
2% ($2 $100)
b.
Per Share
$
0
0
0.62
0.20
0.44
0.90
$ 2.16
Prob. 122A
Mar.
7 Building...................................................................
Land.........................................................................
Common Stock.................................................
Paid-In Capital in Excess of Par
Common Stock.................................................
375,000
75,000
21 Cash........................................................................
Preferred Stock.................................................
Paid-In Capital in Excess of Par
Preferred Stock.................................................
625,000
29 Cash........................................................................
Mortgage Note Payable....................................
200,000
400,000
50,000
500,000
125,000
200,000
Prob. 122A
Concluded
$ 1,200,000
426,325
584,550
75,225
101,945
$2,388,045
$
75,000
375,000
450,000
Total assets.......................................................................
Liabilities
Accounts payable.............................................................
Cash dividends payable...................................................
Total current liabilities...............................................
Mortgage note payable.....................................................
$2,838,045
$
$
357,500
86,840
444,340
200,000
Total liabilities...................................................................
644,340
Stockholders Equity
Paid-in capital:
Preferred stock..........................................................
Excess of issue price over parPS........................
Common stock...........................................................
Excess of issue price over parCS........................
Donated capital..........................................................
From sale of treasury stock......................................
Total paid-in capital...............................................
Retained earnings.............................................................
Total.............................................................................
Deduct treasury stock......................................................
Total stockholders equity................................................
Total liabilities and stockholders equity........................
500,000
125,000
400,000
50,000
200,000
35,000
$ 1,310,000
999,705
$ 2,309,705
116,000
2,193,705
$2,838,045
Prob. 123A
a.
Cash..................................................................................
Common Stock...........................................................
Paid-In Capital in Excess of ParCommon
Stock............................................................................
200,000
b. Cash..................................................................................
Preferred Stock..........................................................
Paid-In Capital in Excess of ParPreferred
Stock............................................................................
90,000
c.
100,000
100,000
75,000
15,000
Treasury Stock.................................................................
Cash.............................................................................
105,000
d. Cash..................................................................................
Treasury Stock...........................................................
Paid-In Capital from Sale of Treasury Stock...........
75,000
e.
Cash..................................................................................
Paid-In Capital from Sale of Treasury Stock.................
Treasury Stock...........................................................
20,000
1,000
Cash Dividends................................................................
Cash Dividends Payable...........................................
[(8,000 $2.25) + (39,000 $0.50)]
37,500
37,500
f.
105,000
63,000
12,000
21,000
37,500
37,500
Prob. 123A
Concluded
835,100
Stockholders Equity
Paid-in capital:
Preferred stock................................................................ $ 600,000
Excess of issue price over parPS..............................
75,000
Common stock................................................................
400,000
Excess of issue price over parCS.............................
200,000
From sale of treasury stock...........................................
11,000
Total paid-in capital..................................................... $ 1,286,000
Retained earnings..................................................................
899,500
Total.................................................................................. $ 2,185,500
Deduct treasury stock...........................................................
21,000
Total stockholders equity.....................................................
2,164,500
Total liabilities and stockholders equity.............................
$ 2,999,600
Prob. 124A
1. and 2.
Common Stock
Jan. 1
Feb. 19
Aug. 11
Bal.
1,600,000
200,000
90,000
1,890,000
Dec. 31
Jan. 1 Bal.
Oct. 20
285,000
Retained Earnings
267,300 Jan. 1 Bal.
Dec. 31
727,100
Treasury Stock
120,000 Apr. 1
285,000
405,000
625,000
369,400
994,400
120,000
100,000
90,000
Stock Dividends
189,000 Dec. 31
189,000
Dec. 27
Cash Dividends
78,300 Dec. 31
78,300
Aug. 11
July
Prob. 124A
Continued
2.
Jan. 10 Land.........................................................................
Donated Capital................................................
100,000
100,000
76,000
Feb. 19 Cash........................................................................
Common Stock.................................................
200,000
Paid-In Capital in Excess of Stated Value......
150,000
350,000
Apr.
1 Cash........................................................................
Treasury Stock..................................................
120,000
Paid-In Capital from Sale of Treasury Stock.
20,000
140,000
July
189,000*
1 Stock Dividends.....................................................
Stock Dividends Distributable........................
90,000
Paid-In Capital in Excess of Stated Value......
99,000
*(80,000 + 10,000) 5% $42
90,000
285,000
78,300**
369,400
31 Retained Earnings.................................................
Stock Dividends................................................
189,000
267,300
Cash Dividends.................................................
78,300
3. $3,001,100 ($1,890,000 + $549,000 + $727,100 $285,000 + $20,000 +
$100,000)
Prob. 124A
Concluded
668,717
98,500
$
221,800
49,800
Stockholders Equity
Paid-in capital:
Common stock................................................................ $ 1,890,000
Excess of issue price over stated value.......................
549,000
Donated capital...............................................................
100,000
From sale of treasury stock...........................................
20,000
Total paid-in capital..................................................... $ 2,559,000
Retained earnings..................................................................
727,100
Total.................................................................................. $ 3,286,100
Deduct treasury stock...........................................................
285,000
Total stockholders equity.....................................................
3,001,100
Prob. 125A
Jan.
262,500
May
121,500*
1 Cash Dividends......................................................
Cash Dividends Payable..................................
121,500
*(18,000 $2) + [(150,000 7,500) $0.60]
121,500
Sept. 17 Cash........................................................................
Treasury Stock..................................................
87,500
Paid-In Capital from Sale of Treasury
Stock..................................................................
12,500
100,000
Nov.
123,000*
2 Cash Dividends......................................................
Cash Dividends Payable..................................
123,000
*(18,000 $2) + [(150,000 5,000) $0.60]
2 Stock Dividends.....................................................
Stock Dividends Distributable........................
72,500
Paid-In Capital in Excess of ParCommon
Stock..................................................................
37,700
110,200**
123,000
72,500
Prob. 125A
Concluded
492,850
152,623
$
Stockholders Equity
Paid-in capital:
Common stock................................................................ $ 1,042,500
Excess of issue price over par......................................
302,400
From sale of treasury stock...........................................
12,500
Total paid-in capital..................................................... $ 1,357,400
Retained earnings..................................................................
437,159
Total.................................................................................. $ 1,794,559
Deduct treasury stock...........................................................
285,000
Total stockholders equity.....................................................
1,509,559
Total liabilities and stockholders equity.............................
$
1,758,869