Arijit Majee

Sampson cohort.

E11-4
Common stock $ 16,00,000.00
Retained earnings $ 9,00,000.00
Net income $ 10,00,000.00
Shares issued $ 90,000.00
shares outstanding $ 80,000.00
Dividends Declared $ 8,00,000.00
and paid

1. The Amount of capital in excess of par = cash-common stock=90000*20-1600000=$ 200000.

2. Retained earnings at the end of the year = retained earnings at the beginning of the year +income-
dividend

Hence, retained earnings at the beginning of the year= retained earnings at the end of the year –
income + dividend

= $900,000 -$1,000,000 +$800,000

= $700,000
3. Shares are in treasury stock = Shares issued -Shares outstanding

= 90,000-80,000 = 10,000

4. EPS = Net Income/Number of Shares of common stock outstanding

= $1,000,000/80,000 = 12.5

E11-8

Stockholders' Equity

Contributed capital
Common stock (par value$0.01; authorized
100,000,000shares,
Issued and outstanding 23,237,630shares) 232376.
30

Additional paid-in capital166489000

Accumulated deficit (Retained earnings) (9874300

0)

Total Stockholders' Equity 67978376

E11-9

Stockholders' Equity
Contributed capital

Preferred stock, 8% (par value $50; authorized

59,000shares, issued and outstanding 20,000shares of which
80 shares are held as treasury stock)1000000
Capital in excess of par, preferred stock 600000

Common stock (par value$10; authorized 98,000shares,

Issued 78,000 of which4000 shares are held as treasury stock) 780000

Capital in excess of par, common stock 780000

Total contributed capital 3160000

Retained earnings 60000

Less cost of common treasury stock held (4000 shares)80000

Total stockholders' equity3140000

E11-10

(a) Cash 100000

Common Stock 100000

(b) Cash 240000

Common stock 222000

Capital in excess 18000

(c) Cash 210000

Preferred stock 70000

Capital in excess of par, preferred stock 140000

E11-15

(a) Treasury stock 4000

Cash 4000

(b) Cash 1000

Treasury stock 800

 Capital in excess of par 200

(c) Cash 450

Capital in excess of par 150

Treasury stock 600

These transactions do not have any impact on income statement because when a company sells its
treasury stock, it does not report an accounting profit or loss on the transaction, even if it sells the
stock for more or less than it paid.

E11-20

Preferred dividend =10990000

Common dividend = (387,514,300 - 41,670,000) *2= 345,844,300* 2 = 691688600

Total dividend = 10990000 +691688600 =702678600

At Declaration date

Retained earnings 702678600

Dividends payable 702678600

At payment date

Dividends payable 702678600

Cash 702678600

P11-2

(a) Cash 480000

Common stock 320000

Capital in excess of par, common stock 160000

 (b) Cash 88000

Preferred stock 55000

Capital in excess of par, preferred stock 33000

(c) Cash 71000

Common stock 24000

Preferred stock 10000

Capital in excess of par, common stock 21000

Capital in excess of par, preferred stock 16000

Stockholders' Equity

Contributed capital

Preferred stock (10%, par value$10; authorized 21,000 shares,

Issued and outstanding 6500 shares) 65000

Capital in excess of par, preferred stock 49000

Common stock (par value$50; authorized 50,000 shares,

Issued and outstanding 43000 shares) 344000

Capital in excess of par, common stock 37000

Total contributed capital 495000

Retained earnings 51000

Total stockholders' equity 546000