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168. On February 13, Epperson Company issue for cash 75,000 shares of no-par common stock (with a stated
value of $125) at $140. On September 9, Epperson issued at par 15,000 share of 1%, $60 par preferred stock at
par for cash On November 23, Epperson issued for cash 8,000 shares of 1%, $60 par preferred stock at $70.
Required: Journalize the entries to record the February 13, September 9 and November 23 transactions.
169. Solar Company has 600,000 shares of $75 par common stock outstanding. On February 13, Solar declared
a 3% stock dividend to be issued on April 30 to stockholders of record on March 14. The market price of the
stock was $90 per share on February 13.
Required: Journalize the entries required on February 13, March 14, and April 30.
170. On February 1, Marine Company reacquired 7,500 shares of its common stock at $30 per share. On
March 15, Marine sold 4,500 of the reacquired shares at $34 per share. On June 2, Marine sold the remaining
shares at $28 per share.
Required: Journalize the transaction of February 1, March 15, and June 2.
171. The following transactions took place for the XYZ Corporation;
a. November 12th - Declared a total cash dividend of $45,000 for stockholders of record November 20th
payable on December 1st. Record the journal entry, if necessary, for the following events;
Nov. 12 -
Nov. 20 -
Dec. 1 -
b. Briefly describe the significance of November 20th.
172. A company had the following stockholders equity information available at year end.
173. On January 1, 2011 a company had the following data:
- issued 10,000 shares of $2.00 par value common stock for $12.00 per share
- issued 3,000 shares of $50 par value 6% cumulative preferred stock for $70 per share
- purchased 1,000 shares of previously issued common stock for $15.00 per share
The company had the following dividend information available:
2011 - No dividend paid
2012 - Paid a $2,000 total dividend
2013 - Paid a $17,000 total dividend
2014 - paid a $32,000 total dividend
Using the following format, fill in the correct values for each year;
174. A corporation was organized on January 1 of the current year, with an authorization of 20,000 shares of $4
preferred stock, $12 par, and 100,000 shares of $3 par common stock.
The following selected transactions were completed during the first year of operations:
Jan. 3
Issued 15,000 shares of common stock at $23 per share for cash.
31
Issued 200 shares of common stock to an attorney in payment of legal fees for organizing the corporation. The value of
the stock at the time of payment was $25 per share.
Feb. 24
Issued 20,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $65,000
$120,000, and $45,000 respectively.
Mar. 15
Issued 2,000 shares of preferred stock at $56 for cash.
Required: Journalize the transactions.
175. Prepare entries to record the following:
(a)
Issued 1,000 shares of $15 par common stock at $54 for cash.
(b)
Issued 1,400 shares of no-par common stock in exchange for equipment with a fair market price of $24,000.
(c)
Purchased 100 shares of treasury stock at $26.
(d)
Sold 100 shares of treasury stock purchased in (c) at $29.
176. On April 10, Maranda Corporation issued for cash 11,000 shares of no-par common stock at $25. On May
5, Maranda issued at par 1,000 shares of 4%, $50 par preferred stock for cash. On May 25, Maranda issued for
cash 15,000 shares of 4%, $50 par preferred stock at $55.
Journalize the entries to record the April 10, May 5, and May 25 transactions.
177. Prepare entries to record the following:
(a)
Issued 1,000 shares of $10 par common stock at $56 for cash.
(b)
Issued 1,400 shares of common stock in exchange for equipment with a fair market price of $21,000.
(c)
Purchased 100 shares of treasury stock at $25.
(d)
Sold 100 shares of treasury stock at $30.
178. Prepare entries to record the following:
(a)
Issued 1,000 shares of $10 par common stock at $59 for cash.
(b)
Issued 1,400 shares of common stock in exchange for equipment with a fair market price of $60,000.
(c)
Purchased 100 shares of treasury stock at $32.
(d)
Sold 100 shares of treasury stock at $42.
179. Wonder Sales is authorized to issue 100,000 shares of $100 par, 2% preferred stock and 1,000,000 shares
of $10 par common stock.
(a) On January 2nd, Wonder Sales issues 5,000 shares of preferred stock for $110 per share and 65,000 shares
of common stock at $10 per share. Journalize this issuance.
(b) On January 25th, Wonder Sales issued 250 shares of preferred stock to a Morton Law Firm for settlement of
an invoice for incorporation services. The invoice was for $36,000. Journalize this issuance.
(c) On January 31st, Wonder Sales issues 500 shares of common stock to Setup Inc. for fixtures. The fixtures
have a fair market value of $8,500. Journalize this issuance.
180. Carmen Company a publicly traded company with preferred and common stock issued. As of January 1st,
it had 50,000 shares of $100 par, 2% preferred stock outstanding and 250,000 shares of $10 par common stock
outstanding.
(a) On January 31st, the Board of Directors issues a requirement to purchase 5,000 shares of its common stock
at market price. The shares are purchased at a market price of $22 per share. Journalize the purchase utilizing
the cost concept.
(b) On March 15th, Carmen declares a dividend on preferred stock of $2.75 per share. The date of record is
March 25th and the date of payment is March 31st. Journalize these events.
(c) On December 1st, Carmen declares a cash dividend on common stock of $0.12 per share. The date of record
is December 15th and the date of payment is December 21st. Journalize these events.
(d) On December 27th the board orders that 2,500 shares of treasury stock be sold. The sale price is $25 per
share. Journalize this event.
181. A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the
following:
(a)
Purchased 1,000 shares of treasury stock at $12. The treasury stock is accounted for by the cost method.
(b)
Sold 500 shares of treasury stock at $15.
(c)
Purchased equipment for $75,000, paying $25,000 in cash and issuing 4,000 shares of common stock for the remaining.
(d)
Sold 500 shares of treasury stock at $11.
182. A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the
following:
(a)
Purchased 1,500 shares of treasury stock at $16. The treasury stock is accounted for by the cost method.
(b)
Sold 1,000 shares of treasury stock at $19.
(c)
Purchased equipment for $80,000, paying $25,000 in cash and issuing 4,000 shares of common stock for the remaining.
(d)
Sold 500 shares of treasury stock at $14.
183. Journalize the following selected transactions completed during the current fiscal year:
Jan. 3
The board of directors declared a stock split which reduced the par of common shares from $100 to $20. This action increased
the number of outstanding shares to 400,000.
22
Declared a dividend of $1.75 per share on the outstanding shares of common stock.
Feb. 8
Paid the dividend declared on January 22.
Sep. 1
Declared a 5% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $30).
Oct. 1
Issued the certificates for the common stock dividend declared on September 1.
184. Prepare entries to record the following selected transactions completed during the current fiscal year:
Feb. 1
The board of directors declared a stock split which reduced the par of common shares from $100 to $20. This action increased
the number of outstanding shares to 500,000.
11
Purchased 25,000 shares of own stock at $44, recording the treasury stock at cost.
May 1
Declared a dividend of $2.50 per share on the outstanding shares of common stock.
15
Paid the dividend declared on May 1.
Oct. 19
Declared a 2% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $55).
Nov. 12
Issued the certificates for the common stock dividend declared on October 19.
185. At December 31st, the Jeter Company had the following ending balances;
Retained Earnings - $100,000
Preferred Stock ($100 par, 7% cumulative, 10,000 authorized, 5,000 issued and outstanding) - 500,000
Treasury stock - $35,000
Additional paid in capital - common stock - 400,000
Additional paid in capital - preferred stock - 50,000
Common stock ($5.00 par value, 100,000 shares authorized, 60,000 issued) - 300,000
Prepare the stockholders equity section of the balance sheet in good form with all of the required disclosures. .
186. The Torre Company has the following balances in stockholders equity on December 31st.
Common Stock - $5.00 par, 60,000 issued
$300,000
Additional paid in capital - common
600,000
Preferred stock - $100 par, 5,000 issued
500,000
Additional paid in capital - preferred
100,000
Retained earnings
200,000
Treasury stock (cost - $12.00 per share)
60,000
Answer the following questions:
1. How many shares of treasury stock are owned?
2. What was the average market price per share at which common stock was issued?
3. What was the average market price per share at which preferred stock was issued?
4. What is the total value of the Paid in Capital portion of stockholders equity?
5. What is the total value of stockholders equity?
6. How many shares of common stock are outstanding?
7. If net income for the year was $75,000 and a preferred stock dividend of $20,000 was paid,
what was the beginning value of retained earnings? How much is earnings per share for
the year?
