291 WEEK 4 INDIVIDUAL ASSIGNMENT – EXERCISES

291 WEEK 4 INDIVIDUAL ASSIGNMENT – EXERCISES
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291 WEEK 4 INDIVIDUAL ASSIGNMENT - EXERCISES
291 WK 4 INDIVIDUAL ASSIGNMENT - EXERCISES
Complete Exercises E11-15, E12-1, & E12-2.
Complete Problem 11-6A.
E11-15

Before Action
After Stock Dividend
After Stock Split
Stockholders’ equity



   Paid-in capital



     Common stock
$600,000
$630,000
$600,000
     In excess of par value
                0
3,000 x ($14-$10)=
     12,000
                0




     Total paid-in capital
600,000
642,000
600,000
   Retained earnings
900,000
$900,000-(3,000 x $14)
858,000
900,000




     Total stockholders’
      equity
1,500,000$
$1,500,000
$1,500,000
Outstanding shares
60,000
63,000
120,000
Book value per share
$25.00
$23.81
$12.50
 
P11-6A
(a) Prepare the journal entries for the:
(1) Issuance of preferred stock for land.
Land 296,000
Preferred Stock 240,000 (2,400 x $100)
Paid-in Capital in Excess of Par Value—Preferred 56,000
(2) Issuance of common stock for cash.
Cash 7,700,000 ($2,000,000 + $5,700,000)
Common Stock2,000,000 (400,000 x $5)
Paid-in Capital in Excess of Stated Value—Common 5,700,000
(3) Purchase of common treasury stock for cash.
Treasury Stock 33,000 (1,500 x $22)
Cash 33,000
(4) Sale of treasury stock for cash.
Cash 14,000 (500 x $28)
Common Treasury Stock 11,000 (500 x $22)
Paid-in Capital from Treasury Stock 3,000 (500 x $6)
(b) Prepare the stockholders’ equity section at December 31, 2011.
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