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226.
A company had the following stockholders’ equity on January 1:
Common Stock – $1 par value;
1,000,000 shares authorized, 350,000
shares issued and outstanding
$350,000
Paid-in capital in excess of par value,
common stock
700,000
Retained earnings
364,000
Total stockholders’ equity
$1,414,000
On January 10, the company declared a 40% stock dividend to stockholders of record on
January 25, to be distributed January 31. The market value of the stock on January 10 prior
to the dividend was $20 per share. What is the book value per common share on February
1?
227.
A company reported the following stockholders’ equity on January 1 of the current year:
$2,500,000
1,260,000
1,675,000
$5,435,000
Prepare journal entries for the following selected transactions related to this company’s
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stock during the current year:
Mar.
1
Purchased 10,000 shares of treasury stock
for $18 per share.
May 5
Sold 2,000 shares of treasury stock for
$19 per share.
Oct.
12
Sold 4,000 shares of treasury stock for
$16 per share.
228.
Underwood Company’s only treasury stock transactions for the current year follow: (1)
2,000 shares of its common stock were purchased on June 1 for $80,000; (2) On July 1 it
reissued 500 of these shares at $45 per share; (3) On August 1 it reissued an additional
Cash (10,000
shares * $18)
May 5
Cash (2,000 shares *
Treasury Stock
Paid-in Capital,
Cash (4,000 shares *
Paid-in Capital,
Treasury Stock
500 treasury shares at $38 per share.
1) Prepare the journal entries required to record these transactions.
2) Calculate the balance in Paid-in Capital, Treasury Stock, on September 1 assuming its
beginning-year balance is zero.
229.
On January 10, Mood Corporation purchased 15,000 shares of its own common stock at
$17.50 per share. On August 4, a total of 2,000 treasury shares were sold at $19.00 per
share. These are the only treasury stock transactions ever made by the corporation.
Prepare the journal entries required on January 10 and August 4.
230.
Record the following transactions of Naches Corporation in general journal form:
(a) Reacquired 8,000 of its own $3 par value common stock at $20 cash per share. The
stock was originally issued at $15 per share.
(b) Sold 2,000 shares of the stock reacquired under part (a) at $23 cash per share.
(c) Sold 3,000 shares of the stock reacquired under part (a) at $19 cash per share.
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231.
On January 3, Nebco Corporation issued 15,000 shares of its $2 par common stock at
$19.50 per share. On May 4, the company issued 3,000 shares of its $50 par preferred
stock at $83.00 per share. Prepare the journal entries required on January 3 and May 4.
Fill in the Blank Questions
232.
The group responsible for and have final authority for managing a corporation’s activities
is(are) the ________________________________.
233.
A corporation is responsible for its own acts and debts because it is considered a
____________________________________.
234.
The _______________________ protects stockholders’ proportional interest in a corporation
by allowing them to purchase their proportional share of any common stock later issued by
the corporation.
235.
A stock _________________ keeps stockholder records and prepares official lists of
stockholders for stockholder meetings and dividend payments.
236.
The number of shares that a corporation’s charter allows it to sell is the
____________________ stock.
237.
The total amount of cash and other assets the corporation receives from its stockholders
in exchange for common stock is called __________________________.
238.
The cumulative net income and loss not distributed as dividends to a corporation’s
shareholders is called ______________________.
239.
Stock that has been issued and is held by stockholders is ___________________ stock.
240.
The amount assigned per share to stock by the corporation in its charter is the
_____________________.
241.
Stock not assigned a value per share by the corporate charter, allowing it to be issued at
any price without the possibility of a minimum legal capital deficiency, is called
_________________.
242.
_____________________ is a general term that refers to any shares issued to obtain owner
financing in a corporation.
243.
The least amount that the buyers of stock must contribute to the corporation or be subject
to paying at a future date is called ____________________________.
244.
___________________________ are corrections of material errors in prior period financial
statements reported in the Statement of Retained Earnings.
245.
_______________________ is the amount of income earned per share of a company’s
outstanding common stock.
246.
_______________________ is the stockholders’ equity applicable to common shares divided
by the number of common shares outstanding.
247.
__________________________ is the annual amount of cash dividends per share distributed
to common shareholders relative to the stock’s market price.
248.
When preferred stock is cumulative and the directors either do not declare a dividend to
preferred stockholders or declare one that does not cover the total amount of cumulative
dividends, the unpaid amount is called ____________________________.