b
.
Retained earnin
g
s, December 31, 2014
As ori
g
inall
y
re
p
orted 7,285,000$
Less:
p
rior
p
eriod ad
j
ustment
3
5
0
,
000
(9
g
c.
Total cash dividends declared durin
2015
data
iven
950,000$
Less: Preferred stock dividend
(
80,000 shares x $6.25
p
er share
)
5
00
,
000
4
0
000
$
2
$
PROBLEM 12.2
A
SLICK SOFTWARE, INC.
For the Year Ended December 31, 2015
Statement of Retained Earnings
SLICK SOFTWARE, INC. (concluded)
1
35 Minutes, Strong
a.
Net sales 10,800,000$
Costs and ex
p
enses:
Cost of
g
oods sold 6,000,000$
Sellin
g
ex
p
enses 1,104,000
General and administrative ex
p
enses 1,896,000
Loss from settlement of liti
g
ation 24,000
Income tax on continuin
g
o
p
erations 7
20
,
000
9
,7
44
,
000
Income from continuin
g
o
p
erations 1,056,000$
Discontinued o
p
erations:
O
p
eratin
g
loss on discontinued o
p
erations
(
net o
f
PROBLEM 12.3
A
PHOENIX, INC.
For the Year Ended December 31, 2015
Income Statement
PHOENIX, INC.
(420
(6
2
36
000
420
000
$
(
(
(3
y
2
$
b
.
Retained earnin
g
s, December 31, 2014
As ori
g
inall
y
re
p
orted 2,175,000$
Add: Prior
p
eriod ad
j
ustment
(
net of income tax
)
60
,
000
PROBLEM 12.3
A
PHOENIX, INC.
For the Year Ended December 31, 2015
Statement of Retained Earnings
PHOENIX, INC. (concluded)
420
3
g
20 Minutes, Easy
Total Number Book Value
Stockholders’ of Shares per
E
qu
i
ty
O
utstan
di
ng
Sh
are
Be
g
innin
g
balance 840,000$ 40,000 21.00$
Jan. 10 Declared and distributed 5% stock div.
2
,
000
Balance 840,000$ 42,000 20.00$
Mar. 15 Acquired 2,000 shares of treasury stock
at cost of $21.00
p
er share
(42
,
000)
(2
,
000)
Balance 798,000$ 40,000 19.95$
Ma
y
30 Reissued 2,000 shares of treasury stock
at
p
rice of $31.50
p
er share
63
,
000
2
,
000
(92
400)
000
1
293
$
84
1
$
PROBLEM 12.4
A
A
LBERS, INC.
y
42
20 Minutes, Medium
a. Capital Stock
A
dditional Total
($10 pa
r
Paid-in Retained Treasury Stockholders’
va
l
ue
)
C
ap
i
ta
l
E
arn
i
ngs
S
toc
k
E
qu
i
ty
Balances, Januar
y
1, 20x
x
2,200,000$ 3,530,000$ 1,900,000$ –$ 7,630,000$
Prior period adjustment (net of income tax benefit) (160,000) (160,000)
Issuance of common stock; 10,000 shares @ $68 100,000 580,000 680,000
Declaration and distribution of 5% stock dividend
2
$
4
6
$
2
$
(3
$
9
$
g
PROBLEM 12.5
A
RIVERTON CORPORATION
RIVERTON CORPORATION
Statement of Stockholders’ Equity
For the Year Ended December 31, 20xx
(28
400)
(28
400)
b. Declaration/distribution of a 5% stock dividend has no effect on total stockholders’ equity.
Declaration of a cash dividend reduces total stockholders’ equity by the amount of the
dividend.
The two types of dividends do not have the same impact upon stockholders’ equity. A cash
PROBLEM 12.5
A
RIVERTON CORPORATION (concluded
)
Education.
40 Minutes, Strong
Jan 3 Dividends 382,000
Dividends Pa
y
able 382
,
000
Feb 15 382
,
000
Cash 382
,
000
,
y
,
,
,
,
,
,
Dividends Pa
y
able
dividend
p
a
y
able on Feb. 15 to stockholders of
2015
To record declaration of $1
p
er share cash
record on Jan. 31.
PROBLEM 12.6
A
a. General Journal
THOMPSON SERVICE
,
b
.
Stockholders’ e
q
uit
y
:
Ca
ital stock, $1
ar value, 500,000 shares authorized,
401,000 shares issued, of which 1,400 are held in the treasury 401,000$
Additional
p
aid-in ca
p
ital:
From issuance of ca
p
ital stock 4,202,000$
From stock dividend 779,000
From treasur
y
stoc
k
14
,
200
4
,
99
5,
200
Total
p
aid-in ca
p
ital 5,396,200
Retained earnin
g
s*
3
,
4
5
2
,
600
8,848,800$
Less: Treasur
y
stock, 1,400 shares at cos
t
5
6
,
000
PROBLEM 12.6
A
THOMPSON SERVICE
December 31, 2015
Partial Balance Shee
t
THOMPSON SERVICE (concluded)
8
92
800
$
g
y
1
928
000
000
1
180
000
g
3
4
2
600
$
g
000
8
0
$
50 Minutes, Strong
a.
Stockholders’ equit
y
:
Capital stock:
Common stock, $10 par, 500,000 shares authorized,
150,000 shares issued, of which 10,000 are held
in the treasur
y
1,500,000$
Stock dividend to be distributed
(
1
)
140,000
Additional paid-in capital:
N
PROBLEM 12.8
A
MANDELLA CORPORATIO
N
December 31, 2015
Partial Balance Sheet
MANDELLA CORPORATIO
N
25 Minutes, Strong
a.
(Dollars in
Th
ousan
d
s
)
Loss from continuing operations (16,026)$
Income from discontinued operations 6,215
PROBLEM 12.9
A
ESPER CORP.
For the Year Ended December 31, 20xx
Partial Income Statement
ESPER CORP.
Education.