0

==

a> Dr . Cash 110,000 ✗ $100 ) $1 ooo ooo

G.
Preferred stock 110,000 ✗ $100 )

Dr .
Cash 1170,000 ✗ $15 ) 2,550,000
Cr .
Common stock 1170,000 ✗ $1 ) 170,000

Cr .
Addtional
paid -

in capital (170,000×414) 2,380,000

'

stockholders section
equity
earned 1,385,000 8% Preferred stock 1000 000

paid preferred stock 320,000 Common stock 170 000

110,000 ✗ too ✗ 8% ✗
4) Additional paid -
in capital :

common stock 510,000 Common stock 2380 ooo

10.75 ✗ 170,000 ✗ 4) Total paid -

in capital 3 550 ooo

retain
earning 555,000 Retain
earning 555000

Total stockholder 's 2995000

equity
 undoi
phap
gray '
10phiin

chicfish lig

I
as DrCash 110000 5100)
x $1000,000
Cr Preferredstock (10000 x$100)

Dr Cash 15%)
(170000 x 2550000

Cr Common stock (170000 x 51) 170000

CAdditional paid-incapital $14)

(170000 x 2380000

stock holder's section

equity

earned 1385 000 8% preferredstock 1000 000

paid preferredstock 320000 common stock 170000

<10000 x100 x8%0x4> Additional paid -

capital
in

Common stock 510000 common stock 2380000

10.75 x 170000 x4> total paid -

in capital 3550000

Retain 555000 Retain 555000

earning earning
4105000
Total stockholder's
equity
b. There are no dividends arrear preferredstock, the have paid all dividends prefered
on
company on
in as must

stocks before making any dividend

payments common stocks. The question says that
the paid$0.75 per
to
company
share each to So the have all dividends preferredstock.
common.
company must on
year
as Dr Cash 1500 x 100) 50000

Cr Preferred stock (500 x$100)

DrCash 180000 ($15) 1200 000

Cr Common stock 180000 x 51) 80000

CrAdditional paid-incapital 100000 x 14) 1120000

stockholder's
equity
earned 1950,000 1000 preferredstock 50000

paid preferred stock 20000 Common stock 8000U

1500 x100 x 10% 4)

X Additional paid -
in capital
Common stock 128 000 Common stock 1120000

total
100000 x40%+4) paid in
capital 1250000

Retain Retoun
earning 180 2 000
earning
1802 000

totalstockholder's
equity 3052000
 Dr Cash (20000x$100, 1000000

Ipreferred stock

DrCash (300 000 x 120) 6000000

Cr Common stock (300000 x$17 300000

Cr additional paid-in capital (300000 x$19) 5700000

Net income 4560000

Paid preferredstock 1000 000

$100 x10% X5)

120000 x

paidcommon stock 1500 000

(600000 +145)

Net loss (2011) 1825 000

Retain 255000
earning
Stockholder's
④
equity
10% preferredstock 2000000

Common stock 300 000

Additional paid -
in capital 5700 000

Total paid capital

in 8000000

Retain 235000
earning
rohal stockholder's
equity 0235000

b. As of December31, 2021, dividends on the $10 cumulative preferred stockwere in arears to the extentof

$10 [(20,000 shares 100 par value x 10%)/ 20000] per share a amountedin total to $200,000
 DrCash (10000 $100)
x 1000000

Ipreferredstock

Di Cash 1400000 x 15) 6000000

C Common stock (400000 x $1) 400 000

Cr additional paid -
in capital (400000x14) 5600000

Net income 4100 000

Paid preferredstock 500000

(10000 5)
100 x 100 x
x

Paid common stock 1600000

1400000x0.8 x5)
Netloss (2021] 1250 000

Retounearning 750000

④ Stockholder's equity section

10% peferredstock 1000 000

Common stock 400000

Additional paid in capital 5600000

total paidin capital 7000 000

Retoenearning 750000
total stockholder's 7750000
equity

↳..... 100 000

 i --: ④

Dr .
cash 120,000 $100 )✗ & , ooo , ooo

G. preferred stock

Dr .
Cash 1300,000 ✗ $20 ) 6 , ooo ,
ooo

Cr .
Common stock (300,000×4) 300,000

Cr . additional paid -
in capital 1300,000 ✗ $19 ) 5,700,000

Stockholders
'
Net income 4,560,000 equity section

Paid preferred stock 1 ,

ooo ,
ooo 10% preferred stock 2. ooo ,
ooo

120,000 shares ✗ too par value ✗ 10% ✗ 5) Common stock 300,000

Paid common stock 1,500,000 1300 ,

ooo ✗ $1 ✗ 5) Additional paid -
in capital : CT 5,700,000

Net loss CNN ) 1,825,000 Total paid -

in capital 8,000,000

Retain 235,00 Retain 235,000

earning earning
'

Total stockholders 8,235,000

equity

b7 As of December 31,2021 ,
dividends on the $10 cumulative preferred stock were in areas to the extent of
$10 ¢ @ ooo shares ✗ too par value ✗ 10%1/00,000] per
share & amounted in total to Hoo , ooo

0
 7

a) DrCash <100000 x 88) 800000

Gcommon stock (100000 x 52> 200 000

Cr Additional paid-in capital (100000 x56>600 000

DrCash <5000x 8100) 500,000

Orpreferredstock
Jan 2, 2010
DrCash 512000

Co preferred stock 512 000

Retain (2019) 170000

earning
Retain (2010 +
2021) 890000

Less:

Common stock (dividends) 210000

>100000 x(0.5 16) +

Preferredstock (dividend) 85000

>8 x
+
9)
5000 5000 x

Retain 765000(890000 210000-85000) + 170000

earning
-

stockholder's section
equity
8% cumulative preferred stock, 5000 authorised shares, $100 par value 500000

5000 shares preferred stock, no-par value, dividend of$9 per share 512 000

common stock 200000

Additional paid-in-capital:capital stock 600 000

Total paid incapital 1812 000

Retoun 765000
earning
tool stockholder's
equity 2577000
 2019

DN Cash (50000 x88) 400000

Cr Common stock (50000 x $1) 50000

Cr Addition paid -

capital (50000
in 97) 350000
2020

Dr
treasury stock
$35000
Cr Cash

2021

DrCash 40000

Cr
treasury stock 35000

Cr Additional paid -

capital
in 5000
EN
Compute
* retain
earning
& ·
b ↓
p-87000
↑
2019:

↑
④

22
& &
① -
&

8888
⑨

:q 1

8
&

&
①
⑤ &
D
- - &
 ~

-0 ⊖
-

as Dr cash ( $8 ✗ too ooo) 800,000 retain 12019 ) 170,000

,
earning
.

1-
stock I ✗ $2 )
G. common too , ooo 20,000
earned (20*+2021) 890,000
a. Additional paid in capital 600,000
legs
-

;
now 2021

Common stock ( dir ) 210 ooo ¢100,000 ✗

(0.5+1.61)
15000 $100 )
,

Dr Cash ✗ 500,000
)
.

preferred stock ( div ) 85,000 ( 8 ✗ sooo + sooo $9

✗

G. preferred stock 500,000

retain 765,000
earning
Jan , d. LOW Dr .
Cash ( 500 shares ) 512,00

G. preferred stock 512.000

'
Stockholders equity
8% cumulative preferred stock , 5000 authorized shares ,
Hoo par value 500,000

stock dividend $9 share

5000 shares preferred ,
no -

par oakie , of per 512,000

common stock doo , ooo

Additional paid -
in capital capital : stock 600,000
Total paid -
in capital 1,812,000
Retain 765,000
earning '

Total stockholders equity 21577.000

 →

2019, Dr .
Cash 150,000 ✗ $8 ) 400,000
G. Common stock 150,000 ✗ $1 ) 50,000

a. Additional paid -
in capital 350,000

stock
sooo , Dr .

Treasury $35,000
G. Cash

20N Dr . Cash 40,000

G. stock
Treasury 35,000

G. Additional paid -
in capital 5,000

* Compute retain
earning
do l9 : RE =
95,000
 -

8000
1- 108,000 -

20 ooo
.

= ,

Y Computation Depreciation expense Accumulated depreciation Book value

108,000
1ˢᵗ 20,000 ✗ % 10,000 10,000 98,000
and 20,000 30,000 78,000
3rd D. ON 50,000 58,000
4ᵗʰ 20,000 tooooo 38,000
5ᵗʰ 20,000 90,000 18,000
6ᵗʰ 10,000 100,000 8,000