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EXERCISE 11-4 (Continued)
(b) Cash ...................................................................... 52,000
(c) Cash .......................................................................... 52,000
(d) Organization Expense ......................................... 52,000
(e) Land ...................................................................... 52,000
EXERCISE 11-5
Treasury Stock .......................................................... 255,000
Cash (2,000 X $54) ..................................................... 108,000
Cash (1,000 X $43) ..................................................... 43,000
EXERCISE 11-6
(a) Cash ........................................................................ 2,300,000
(b) Total Dividend ........................................................ $ 500,000
(c) Total Dividend ........................................................ $ 500,000
EXERCISE 11-7
Mar. 2 Organization Expense .................................. 30,000
June 12 Cash ............................................................... 375,000
July 11 Cash (1,000 X $110)....................................... 110,000
EXERCISE 11-8
1. Land ........................................................................ 110,000
2. Land (20,000 X $11) ............................................... 220,000
EXERCISE 11-9
July 1 Cash (10,000 X $17) ............................... 170,000
Sept. 1 Cash (8,000 X $14) ................................. 112,000
(b) Sept. 1 Cash (8,000 X $12) ................................. 96,000
EXERCISE 11-10
(a) Feb. 1 Cash (20,000 X $53) ............................ 1,060,000
July 1 Cash (12,000 X $57) ............................ 684,000
(b)
Preferred Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 1
July 1
1,000,000
600,000
1,000,000
1,600,000
Paid-in Capital in Excess of Par—Preferred Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 1
July 1
60,000
84,000
60,000
144,000
(c) Preferred stock—listed first in paid-in capital under capital stock.
EXERCISE 11-11
MEMO
To: President
From: Your name , Chief Accountant
Re: Questions about Stockholders’ Equity Section
Your memorandum about the stockholders’ equity section was received this
morning. I hope the following will answer your questions.
EXERCISE 11-12
May 2 Cash (10,000 X $13) ...................................... 130,000
10 Cash (10,000 X $60) ...................................... 600,000
15 Treasury Stock.............................................. 15,000
31 Cash (500 X $16) ........................................... 8,000
EXERCISE 11-13
(a) June 15 Cash Dividends (120,000 X $1) ............. 120,000
July 10 Dividends Payable ................................. 120,000
(b) In the retained earnings statement, dividends of $266,400 will be deducted.
EXERCISE 11-14
(a) Stock Dividends (21,000* X $18) ............................ 378,000
(b) Stock Dividends (36,000* X $20) ............................ 720,000
EXERCISE 11-15
Before
Action
After
Stock
Dividend
After
Stock
Split
Stockholders’ equity
Paid-in capital
Common stock
In excess of par
Total paid-in capital
Retained earnings
Total stockholders’
equity
$ 500,000
0
500,000
900,000
$1,400,000
$ 525,000
10,000
535,000
865,000
$1,400,000
$ 500,000
0
500,000
900,000
$1,400,000
Outstanding shares
50,000
52,500
100,000
Par value per share
$10.00
$10.00
$5.00
EXERCISE 11-16
1. Dec. 31 Cash Dividends ............................... 50,000
2. 31 Stock Dividends .............................. 8,000
Dividends Payable .......................... 10,000
3. 31 Common Stock ............................... 2,000,000
EXERCISE 11-17
EDDY CORPORATION
Retained Earnings Statement
For the Year Ended December 31, 2015
Balance, January 1, as reported ............................. $650,000
EXERCISE 11-18
NEWLAND COMPANY
Retained Earnings Statement
For the Year Ended December 31, 2015
Balance, January 1, as reported .................................. $310,000
EXERCISE 11-19
Paid-in Capital
Account
Capital
Stock
Additional
Retained
Earnings
Other
Common Stock .................................
Preferred Stock ................................
Treasury Stock .................................
Paid-in Capital in Excess of Par—
Preferred Stock ............................
Paid-in Capital in Excess of
Stated Value—Common Stock ......
Paid-in Capital from Treasury
Stock .............................................
Retained Earnings ............................
X
X
X
X
X
X
X
EXERCISE 11-20
HORNER INC.
Balance Sheet (Partial)
December 31, 20XX
Stockholders’ equity
Paid-in capital
Capital stock
8% Preferred stock, $5 par value,
40,000 shares authorized,
30,000 shares issued .................. $ 150,000
