Exercise 11

Stockholders Equity

8% cumulative Preferred Stock,100 par value, authorize 100,000 shares, Issued and outstanding 10,000 shares
common Stock, 1 par value, authorize 500,000 shares, Issued and outstanding 170,000 shares
Additional paid in capital- common stock(170,000*14)
Total paid in capital
Reatined Earnings (w-1)
Total stockholders Equity

Reatined Earnings (W-1)

Net profit for four years
Common dividends(170000*.75*4)
Preferred dividends(1,000,000*.08*4)

Exercise 12
Stockholders Equity

10% cumulative Preferred Stock,100 par value, authorize 20,000 shares, Issued and outstanding 20,000 shares
common Stock, 1 par value, authorize 1,000,000 shares, Issued and outstanding 300,000 shares
Additional paid in capital- common stock
Total paid in capital
Reatined Earnings (w-1)
Total stockholders Equity

Reatined Earnings (W-1)

Net profit for five years
Common dividends(300,000*1*5)
Preferred dividends(2,000,000*.10*5)
Net Loss
 Exercise 13
Stockholders Equity

8% cumulative Preferred Stock,100 par value, authorize 5,000 shares, Issued and outstanding 8,000 shares
Rs 9 per share dividend, cumulative Preferred Stock,no par value, authorize 10,000 shares, Issued and outstanding 5,000 share
common Stock, 2 par value, authorize 200,000 shares, Issued and outstanding 100,000 shares
Additional paid in capital- common stock
Total paid in capital
Reatined Earnings (w-1)
Total stockholders Equity

Reatined Earnings (W-1)

Net profit for four years
Common dividends(100,000*.5)
Common dividends(100,000*1.60)
Preferred dividends(500000*.08*3)
Preferred dividends(5000*9*2)

Exercise 14
General Journal(a)
Stockholders Equity (b)

10% cumulative Preferred Stock,100 par value, authorize 50,000 shares, Issued and outstanding 2500 shares
common Stock, 2 par value, authorize 400,000 shares, Issued and outstanding 35,500 shares
Additional paid in capital- common stock
Total paid in capital
Reatined Earnings (w-1)
Total stockholders Equity

Reatined Earnings (W-1)

Net profit for four years
Preferred dividends(2500*10)

Exercise 15
a
b
c
d
e
f
g

h
Add
less

less
 Exercise 16
Stockholders Equity

cumulative Preferred Stock,100 par value, authorize 30,000 shares, Issued and outstanding 30,000 shares
common Stock, 10 par value, authorize 200,000 shares, Issued and outstanding 120,000 shares
Additional paid in capital- common stock
Additional Paid in Capital-Treasury Stock (W-1)
Total paid in capital
Reatined Earnings (w-2)
Subtotal
treasury stock(10,000*20)
Total stockholders Equity

Additional Paid in Capital-Treasury Stock (W-1)

Reatined Earnings (W-2)

Net profit for five years
Common dividends(120,000*.5*2)
Common dividends(100,000*.5*2)
Common dividends(110,000*.5)
Preferred dividend(100*10%*30,000*5)

(b)

Exercise 9
a
b
Cash
Share capital-common stock
Additional paid in capital -common stock

Services Expense
Share capital-common stock
Additional paid in capital

cash
share capital-preferred stock

Building Site
Share-capital-common stock
Additional paid in capital

Dividend Expense
Dividend Payable
Dividend payable
cash

income summary
Retained Earnings

Retained Earnings
Dividend

2,400,000/100
7.5%*100*24000
900,000/2
(900,000+8,325,000)/450,000
Total stock issued at par(2,400,000+900,000)
(3,300,000+8,325,000)
(14,940,000-2,400,000)/450,000

Retained Earnings beginning

Net Income
Retained Earnings Closing
Total Dividend Paid
Preferred stock dividend(.075*100*24,000)
Common Stock Dividend
Dividend per share(1,912,500/450,000)

purchase price per share of treasury stock(400,000/20,000)

Reissue price per share of treasury stock(250,000/10,000)
Paid in capital per share on re-issue stock(25-20)
Total paid in capital on re-issue treasury stock(5*10,000)

(6,195,000-3000,000)/110,000

(200,000+300,000+452,800-146800)
(806,000-(216,000+16,000*))/60,000

*
Dividend in arrears(.08*200,000)
 (10,000*100)

1,025,000
-510,000
-320,000

195,000

(20,000*100)
(300,000*1)
(300,000*19)

4,460,000
-1,500,000
-1,000,000
-1,600,000
 360,000

(5,000*100)

(100,000*2)
(100,000*6)

1,060,000
(50,000)
-160,000
-120,000
-90,000

640,000

(20,000*14) 280,000
(20,000*2)
(20,000*12)

7,000
(500*2)

250,000
(2500*100)

(15,000*15) 225,000
(15,000*2)

(2500*10) 25,000
 25,000

106,500

25,000

(2500*100)
(40,000+1,000+30,000)
(240,000+6,000+195,000)

106,500
-25,000

81,500

24,000
180,000
450,000
20.50
3,300,000
11,625,000
27.87

717,500
3,970,000
(2,595,000)
2,092,500
(180,000)
1,912,500
 4.25

(30,000*100)
(120,000*10)
(120,000*6)

20
25
5
50,000

3,200,000
(120,000)
-100,000
-55,000
-1,500,000

1,425,000

29.05

806,000
16,000
1,000,000
170,000
2,380,000
3,550,000
195,000
3,745,000

2,000,000
300,000
5,700,000
8,000,000
360,000
8,360,000
 500,000
512,000
200,000
600,000
1,812,000
640,000
2,452,000

40,000
240,000

1,000
6,000

250,000

30,000
195,000

25,000
 25,000

106,500

25,000

250,000
0+1,000+30,000) 71,000
00+6,000+195,000) 441,000
762,000
81,500
843,500
3,000,000
1,200,000
720,000
50,000
4,970,000
1,425,000
6,395,000
-200,000
6,195,000
 Exercise 16
Stockholders Equity

cumulative Preferred Stock,100 par value, authorize 40,000 shares, Issued and outstanding 40,000 shares
common Stock, 10 par value, authorize 200,000 shares, Issued and outstanding 160,000 shares
Additional paid in capital- common stock
Additional Paid in Capital-Treasury Stock (W-1)
Total paid in capital
Reatined Earnings (w-2)
Subtotal
treasury stock(10,000*20)
Total stockholders Equity

Additional Paid in Capital-Treasury Stock (W-1)

purchase price per share of treasury stock(400,000/20,000)
Reissue price per share of treasury stock(250,000/10,000)
Paid in capital per share on re-issue stock(25-20)
Total paid in capital on re-issue treasury stock(5*10,000)

Reatined Earnings (W-2)

Net profit for five years
Common dividends(160,000*2*2)
Common dividends(60,000*2*2)
Preferred dividend(100*10%*30,000*2)

(b) (8633000-4000,000)/150,000
s, Issued and outstanding 40,000 shares (40,000*100) 4,000,000
d outstanding 160,000 shares (160,000*10) 1,600,000
[(60,000*6)+1400000) 1,760,000
48,000
7,408,000
1,425,000
8,833,000
-200,000
8,633,000

20
25
5
50,000

4,500,000
(640,000)
-240,000
-600,000

3,020,000

30.88