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193.
Slate Corporation had the following balances in its stockholders’ equity accounts at
December 31, 2016:
Common Stock, $10
par, 500,000 shares
authorized, 20,000
shares issued
$200,000
Paid-in Capital in
Excess of Par Value,
Common
250,000
Retained Earnings
500,000
Treasury Stock, 1,000
shares
(20,000)
Total stockholders’
equity
$930,000
The following transactions occurred during 2017:
February 3
Sold and issued 2,000 shares of
common stock for $22 per share.
May 10
Declared a $0.50 per share dividend
on common stock.
October 12
Sold 500 shares of the treasury
stock for $20 per share.
December
31
Net income for the year was
determined to be $75,000.
Based on the above information, prepare a statement of stockholders’ equity for 2017.
Use the form below.
Slate Corporation
Statement of Stockholders’ Equity
December 31, 2017
Paid-in
Retained
Treasury
Total
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Capital
in
Excess
of Par
Value,
Common
Earnings
Stock
Equity
Balance,
December
31, 2016
$250,000
$500,000
($20,000)
$930,000
Net
194.
A company’s stock is selling for $63.20 per share and its earnings per share is $3.60 for
the current year. Calculate the price-earnings ratio.
195.
A company reported net income of $836,000 for the current year. The year–end market
price per common share was $12 and there were 475,000 weighted-average shares of
common stock outstanding. Calculate the company’s price-earnings ratio.
196.
A company reported $960,000 in net income for the current year. Total weighted-average
common shares outstanding are 150,000 shares, and the year-end market price is $67.20
per common share. Calculate the company’s price earnings ratio.
197.
A company reported $1,050,000 in net income for the current year. Earnings per common
share is $1.75 and the year-end market price of the shares is $31.50. Calculate the
company’s price earnings ratio.
198.
A corporation reported net income of $2,730,000 and paid preferred cash dividends of
$120,000 during the current year. There were 600,000 weighted-average shares of
common stock outstanding and the market price per common share at year-end was
$58.30. Calculate the company’s price-earnings ratio.
199.
Gershwin Company reported net income of $428,000 and paid $8,500 in preferred cash
dividends during the current year. The company had 110,000 common shares issued, and
10,000 common shares in treasury during the year. The year-end market price per
common share was $41.05. Calculate the company’s price–earnings ratio.
200.
A company’s stock is selling for $35.70 per share at year-end. This year it paid
shareholders a $1.43 per share cash dividend, reported earnings per share of $11.00, and
had 750,000 common shares outstanding at year-end. Calculate the company’s dividend
yield.
201.
A corporation paid a cash dividend of $0.85 per share during the current year. It had
1,550,000 common shares outstanding at year-end, its current year earnings per share
was $3.45, and the stock’s year-end market price was $10.63 per share. Calculate the
company’s dividend yield.
202.
Lafferty Corporation reported earnings per share of $9.75, paid a $6.00 cash dividend per
share to preferred shareholders, and paid a $0.54 cash dividend per share to common
shareholders. There were 10,000 shares of preferred stock outstanding and 600,000
shares of common stock outstanding during the year, and the market price per share of
common stock was $41.60. Calculate the company’s dividend yield for common stock.
203.
A company paid a cash dividend of $0.88 per share during the current year, and reported
18,000 shares of common stock issued, and 2,000 common shares in treasury stock during
the current year. The year-end market price per share was $27.50. Calculate the following:
(1) total amount of cash dividends paid to common shareholders, and (2) dividend yield.
204.
A company has 2,000,000 common shares authorized, 400,000 common shares issued, and
15,000 common shares in treasury stock at the current year-end. It paid $0.96 per share
cash dividends during the year. The year-end market price of the stock is $15. Calculate
(1) the total dividends paid and (2) the dividend yield.
205.
Avro Corporation has $875,000 in stockholders’ equity and 350,000 weighted-average
shares of common stock outstanding. Calculate the book value per common share.
206.
A company has $2,400,000 in stockholders’ equity that includes 500 shares of $50 par
value non-callable preferred stock outstanding and 250,000 shares of common stock
outstanding. Calculate the book value per (1) preferred share, and (2) common share.
207.
A company reports the following stockholders’ equity. Compute the (1) number of common
shares outstanding and (2) book value per common share.
Paid-in Capital:
Common stock, $2 par, 5,000,000
shares authorized
$3,000,000
Paid-in capital in excess of par,
Common stock
1,300,000
Total paid-in capital
$4,300,000
Retained earnings
1,400,000
Total stockholders’ equity
$5,700,000
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208.
The stockholders’ equity section of a company’s year-end balance sheet follows:
Preferred stock, $50 par
value, 9% cumulative and
nonparticipating, 10,000
shares outstanding
$500,000
Paid-in capital in excess
of par value, preferred
stock
50,000
Total capital paid-in by
preferred stockholders
$550,000
Common stock, $0.50 par
value, 1,500,000 shares
outstanding
$750,000
Paid-in capital in excess
of par value, common
stock
150,000
Total capital paid-in by
common stockholders
900,000
Total paid-in capital
$1,450,000
Retained earnings
1,690,000
Total stockholders’ equity
$3,140,000
The preferred stock has a call price of $51.50 per share plus dividends in arrears. Only
one year of dividends is in arrears. Calculate the book value per (1) preferred share, and
(2) common share.
Total stockholders’ equity
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209.
A corporation reports the following year-end stockholders’ equity:
Paid-in capital:
Preferred stock, 8%, 100,000 shares
authorized, 50,000 shares issued
$2,500,000
Paid-in capital in excess of par,
Preferred
125,000
Common stock, $1 par, 5,000,000
shares authorized, 4,000,000 shares
issued
4,000,000
Paid-in capital in excess of par,
Common
1,200,000
Total paid-in capital
$7,825,000
Retained earnings
10,775,000
Total stockholders’ equity
$18,600,000
Determine the following:
(1) Par value for the preferred stock.
(2) Book value per share for both preferred stock and common stock assuming a call price
per share of $52 for preferred and no dividends in arrears.
Total stockholders’ equity
(50,000 shares * $52 call price)
Common stockholders’ equity
$16,000,000
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210.
The stockholders’ equity section of a corporation’s balance sheet follows:
Preferred stock, $25 par value, 6%,
cumulative, 10,000 shares
authorized, 5,000 shares issued and
outstanding
$125,000
Paid-in capital in excess of par
value, Preferred stock
50,000
Common stock, $5 par value, 50,000
shares authorized, 20,000 shares
issued and outstanding
100,000
Paid-in capital in excess of par
value, Common stock
40,000
Retained earnings
95,000
Total stockholders’ equity
$410,000
(1) Assuming that the preferred stock is not callable and no dividends are in arrears,
compute the book values per preferred share and per common share.
(2) Assuming that the preferred stock has a call price of $30 per share and one year of
cumulative preferred dividends is in arrears, compute the book values per preferred share
and per common share.
shares]
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211.
A company is authorized to issue 750,000 shares of $2 par value common stock. Prepare
journal entries to record the following selected transactions that occurred during the
company’s first year of operations:
Jan. 10
Sold 102,000 shares of common stock for
$8 cash per share.
15
Exchanged 10,000 shares of common
stock for equipment with a market value
of $70,000.
Feb. 1
Exchanged 500 shares of common stock
for $3,000 of legal services Incurred
during the company’s organization.
Common Stock
Paid-in Capital in
Common Stock
Paid-in Capital in
Excess of Par Value,
Common Stock
Feb.
1
Common Stock (500 *
212.
On July 1, a corporation issued 15,000 shares of no-par common stock with a stated value
of $3 per share in exchange for a tract of land having a market value of $215,000. Prepare
the general journal entry to record this transaction.
213.
On September 20, Fletcher Corporation issued 25,000 shares of no-par common stock for
equipment having a market value of $85,000. Prepare the general journal entry to record
this transaction.