15 Minutes, Medium
Stockholders’ e
q
uit
y
:
Common stock, $1 par, 50,000 shares authorized, issued, and 50,000$
outstanding
Additional
p
aid-in ca
p
ital: Common stoc
k
350,000
PROBLEM 11.8
A
a. Feller Corporation
31-Dec-15
Partical Balance Shee
t
FELLER CORPORATION
p
p
30 Minutes, Strong
Stockholders’ e
q
uit
y
:
10%
p
referred stock
,
$100
p
ar
,
cumulative
,
authorized
,
issued
,
and outstandin
g
30
,
000 shares 3,000,000$
Common stock
,
$10
p
ar
,
200
,
000 shares authorized
,
120
,
000 shares issued
,
of which 10
,
000 shares are held in
treasur
y
1,200,000
Additional
p
aid-in ca
p
ital: Common stock 720,000
y
,
PROBLEM 11.9
A
a.
HERNDON INDUSTRIES
p
p
20 Minutes, Easy
a.
Stockholders’ equity
authorized 2,000 shares, issued and out- 50,000$
standing 500 shares
1
120
000
1
802
000
T
3
0
2
000
$
1,950,000$
$
20
,
000
128
,
000
148
,
000
1
,
802
,
000
$
b.
10% cumulative preferred stock, $100 par value,
SOLUTIONS TO PROBLEMS SET B
PROBLEM 11.1B
SEARFOSS, INC.
December 31, 2015
Partial Balance Shee
t
SEARFOSS, INC.
*Computation of retained earnings at December 31, 2015:
Common dividends ($0.40 x 80,000 shares x 4 years)
Retained earnings, December 31, 2015
Net income for the four-year period 2012-2015
Less: Preferred dividends ($5,000 per year for four years)
There are no dividends in arrears at December 31, 2015. We know this because common
dividends were paid in each of the four years that the company was in existence. Common
20 Minutes, Easy
a.
Stockholders’ equity
authorized, issued, and outstanding 10,000 shares 1,000,000$
c. No. Dividends do not represent a liability of the corporation until they are declared by the
board of directors.
b. Note to financial statements:
As of December 31, 2015, dividends on the 10%, $100 par value, cumulative preferred stock
were in arrears to the extent of $10 per share, amounting in total to $100,000.
PROBLEM 11.2B
BANNER PUBLICATION
S
December 31, 2015
Partial Balance Shee
t
BANNER PUBLICATION
S
10% cumulative preferred stock, $100 par value,
25 Minutes, Medium
a.
Stockholders’ equity
shares authorized, issued, and outstanding 1,000,000$
$6 cumulative preferred stock, no-par value, 8,000 shares
authorized, 5,000 shares issued and outstanding 320,000
2014
PROBLEM 11.3B
RAY BEAM, INC.
December 31, 2015
Partial Balance Shee
t
RAY BEAM, INC.
10% cumulative preferred stock, $100 par value, 10,000
35 Minutes, Medium
Jan 7 Cash 300,000
Common Stock 1,000
11,000
20__
Issued 1,000 shares of common stock to Deal in
corporation. Implied issuance price ($12,000 ÷ 1,000
PROBLEM 11.4B
a. General Journal
MARKUP, INC.
Additional Paid-in Capital: Common Stock
exchange for services relating to formation of the
b
.
Stockholders’ equity
100,000 shares, issued and outstanding 4,000 shares 400,000$
*Computation of retained earnings at December 31, 20xx:
Common stock, $1 par, authorized 100,000 shares,
5% cumulative preferred stock, $100 par, authorized
MARKUP, INC.
December 31, 20x
x
Partial Balance Shee
t
MARKUP, INC. (concluded)
35 Minutes, Strong
a. Par value of all preferred stock outstanding 4,400,000$
100$
44,000
Par value per share of preferred stock
Number of shares of preferred stock outstanding ($4,400,000 ÷ $100)
PROBLEM 11.5B
MIRROR, INC.
35 Minutes, Medium
In Thousands
Number of shares outstandin
g
(
$9
,
600/$3
)
3
,
200
b. Dividend re
q
uirement
p
er share of
p
referred stoc
k
10$
p
2
500
$
76
136
$
p
50
42
$
PROBLEM 11.6B
TIMBERLAKE CORPORATION
Sh