Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (4th Edition)
4th Edition
ISBN: 9780134417356
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 10, Problem 24AE
To determine
Identify whether given transactions will increase, decrease or will not change the total
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(Learning Objective 2: Record issuance of stock for cash and for services) AttorneyKristen Maloney invoiced Dunn for $20,400 and has agreed to accept 1,500 shares of its$0.01 par-value common stock in full payment for this invoice. Dunn issued the common stockto Attorney Maloney on January 29. Record the stock-issuance transaction for Dunn
Problem: Module 3 Textbook Problem 14
Learning Objective: 3-11 Differentiate between common and preferred stock
When Crossett Corporation was organized in January, Year 1, it immediately issued 4,200 shares of $53 par, 5 percent, cumulative
preferred stock and 12,000 shares of $15 par common stock. Its earnings history is as follows: Year 1, net loss of $15,000; Year 2, net
income of $122,000; Year 3, net income of $217,000. The corporation did not pay a dividend in Year 1.
Required
a. How much is the dividend arrearage as of January 1, Year 2?
b. Assume that the board of directors declares a $53,500 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2
preferred dividends are due). How will the dividend be divided between the preferred and common stockholders?
Complete this question by entering your answers in the tabs below.
Required A Required B
X Answer is not complete.
How much is the dividend arrearage as of January 1, Year 2?
Dividend arrearage
$ 11,130
S13-9 Journalizing a small stock dividend
Learning Objective 4
Element Water Sports has 13,000 shares of $1 par value common stock
outstanding. Element distributes a 5% stock dividend when the market value of
its stock is $15 per share.
Requirements
1. Journalize Element's declaration of the stock dividend on August 15 and
distribution on August 31.
2. What is the overall effect of the stock dividend on Element's total assets?
3. What is the overall effect on total stockholders' equity?
Chapter 10 Solutions
Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (4th Edition)
Ch. 10 - What are the four baste rights of stockholders?Ch. 10 - Assume you are a CFO of a company that is...Ch. 10 - Prob. 3DQCh. 10 - What accounts, if any, are involved in the journal...Ch. 10 - With which type of stock would dividends in...Ch. 10 - What accounts are affected by the declaration and...Ch. 10 - What are some of the reasons for issuing a stock...Ch. 10 - Prob. 8DQCh. 10 - What could you reasonably conclude if a company...Ch. 10 - Prob. 10DQ
Ch. 10 - Prob. 1SCCh. 10 - Prob. 2SCCh. 10 - Prob. 3SCCh. 10 - Prob. 4SCCh. 10 - Prob. 5SCCh. 10 - Prob. 6SCCh. 10 - Prob. 7SCCh. 10 - Prob. 8SCCh. 10 - Prob. 9SCCh. 10 - Prob. 10SCCh. 10 - Prob. 11SCCh. 10 - Prob. 12SCCh. 10 - Stockholders' equity terminology (Learning...Ch. 10 - Stock issuance (Learning Objective 3) 5-10 min....Ch. 10 - Issuance of stock for cash and noncash assets...Ch. 10 - Prob. 4SECh. 10 - Prob. 5SECh. 10 - Prob. 6SECh. 10 - Prob. 7SECh. 10 - Prob. 8SECh. 10 - Prob. 9SECh. 10 - Prob. 10SECh. 10 - Prob. 11SECh. 10 - Prob. 12SECh. 10 - Prob. 13SECh. 10 - Prob. 14SECh. 10 - Prob. 15AECh. 10 - Prob. 16AECh. 10 - Prob. 17AECh. 10 - Prob. 18AECh. 10 - Prob. 19AECh. 10 - Prob. 20AECh. 10 - Prob. 21AECh. 10 - Accounting for cash and stock dividends (Learning...Ch. 10 - Prob. 23AECh. 10 - Prob. 24AECh. 10 - Prob. 25AECh. 10 - Accounting for treasury stock (Learning Objectives...Ch. 10 - Prob. 27AECh. 10 - Prob. 28AECh. 10 - Prob. 29AECh. 10 - Prob. 30AECh. 10 - Prob. 31BECh. 10 - Prob. 32BECh. 10 - Prob. 33BECh. 10 - Prob. 34BECh. 10 - Prob. 35BECh. 10 - Prob. 36BECh. 10 - Prob. 37BECh. 10 - Accounting for cash and stock dividends (Learning...Ch. 10 - Prob. 39BECh. 10 - Prob. 40BECh. 10 - Accounting for treasury stock (Learning Objectives...Ch. 10 - Prob. 42BECh. 10 - Prob. 43BECh. 10 - Prob. 44BECh. 10 - Prob. 45BECh. 10 - Prob. 46BECh. 10 - Prob. 47APCh. 10 - Prob. 48APCh. 10 - Prob. 49APCh. 10 - Prob. 50APCh. 10 - Prob. 51APCh. 10 - Prob. 52APCh. 10 - Prob. 53APCh. 10 - Prob. 54BPCh. 10 - Prob. 55BPCh. 10 - Prob. 56BPCh. 10 - Prob. 57BPCh. 10 - Prob. 58BPCh. 10 - Prob. 59BPCh. 10 - Prob. 60BPCh. 10 - Prob. 1CECh. 10 - Prob. 1CPCh. 10 - Prob. 1EIACh. 10 - Case 2. The board of directors for Atlantic...Ch. 10 - Prob. 1FACh. 10 - Prob. 1IACh. 10 - Prob. 1SBACh. 10 - Prob. 1WC
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- E13-26 Journalizing issuance of stock and treasury stock transactions Learning Objectives 2, 3 May 22 Treasury Stock $16,900 Stock transactions for Careful Driving School, Inc. follow: Mar. 4 Issued 27,000 shares of $1 par value common stock at $10 per share. May 22 Purchased 1,300 shares of treasury stock-common at $13 per share. Sep. Sold 500 shares of treasury stock-common at $23 per share. 22 Oct. 14 Sold 800 shares of treasury stock-common at $9 per share. Journalize the transactions.arrow_forwardLearning Objective 6: Report stockholders’ equity) Lima Corp. has the followingstockholders’ equity information:Lima’s charter authorizes the company to issue 4,000 shares of 11% preferred stock withpar value of $200 and 700,000 shares of no-par common stock. The company issued 1,000shares of the preferred stock at $200 per share. It issued 350,000 shares of the common stockfor a total of $512,000. The company’s retained earnings balance at the beginning of 2018 was$75,000, and net income for the year was $100,000. During 2018, Lima declared the specifieddividend on preferred and a $0.10 per-share dividend on common. Preferred dividends for 2017were in arrears.Requirement1. Prepare the stockholders’ equity section of Lima Corp.’s balance sheet at December 31,2018. Show the computation of all amounts. Journal entries are not required.arrow_forward(Learning Objective 6: Report stockholders’ equity) Doorman Corp. has thefollowing stockholders’ equity information:Doorman’s charter authorizes the company to issue 9,000 shares of 8% preferred stockwith par value of $120 and 700,000 shares of no-par common stock. The company issued 1,800shares of the preferred stock at $120 per share. It issued 140,000 shares of the common stockfor a total of $513,000. The company’s retained earnings balance at the beginning of 2018 was$77,000, and net income for the year was $94,000. During 2018, Doorman declared the specified dividend on preferred and a $0.20 per-share dividend on common. Preferred dividends for2017 were in arrears.Requirement1. Prepare the stockholders’ equity section of Doorman Corp.’s balance sheet at December 31,2018. Show the computation of all amounts. Journal entries are not required.arrow_forward
- S13-7 Accounting for cash dividends Learning Objective 4 Java Company earned net income of $85,000 during the year ended December 31, 2018. On December 15, Java declared the annual cash dividend on its 4% preferred stock (par value, $120,000) and a $0.25 per share cash dividend on its common stock (50,000 shares). Java then paid the dividends on January 4, 2019. Requirements 1. Journalize for Java the entry declaring the cash dividends on December 15, 2018. 2. Journalize for Java the entry paying the cash dividends on January 4, 2019.arrow_forwardPrepare the journal entry to record Zende Company's issuance of 84,000 shares of $8 par value common stock assuming the shares sell for: a. $8 cash per share. b. $9 cash per share. View transaction list Journal entry worksheet 1 Record the issuance of 84,000 shares of $8 par value common stock assuming the shares sell for $8 cash per share. 2 Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general journal Saved >arrow_forward
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