PROBLEM 11-3A (Continued)
(c) CASTLE CORPORATION
Stockholders’ equity
Paid-in capital
Capital stock
8% Preferred stock, $50
par value, cumulative,
are in arrears.
PROBLEM 11-4A
(a) Feb. 1 Cash Dividends (60,000 X $1) …………… 60,000
Mar. 1 Dividends Payable …………………………... 60,000
Apr. 1 Memo—two-for-one stock split
July 1 Stock Dividends (12,000 X $13) ………… 156,000
31 Common Stock Dividends
Distributable ………………………………… 120,000
31 Income Summary …………………………….. 350,000
PROBLEM 11-4A (Continued)
(b)
Common Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Apr. 1
July 31
Balance
2 for 1 split—new
par $10
120,000
1,200,000
1,320,000
Common Stock Dividends Distributable
Date
Explanation
Ref.
Debit
Credit
Balance
July 1
31
120,000
120,000
120,000
0
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
July 1
Balance
36,000
200,000
236,000
Retained Earnings
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Dec. 31
Balance
Net income
Stock dividend
Cash dividend
156,000
126,000
350,000
600,000
950,000
794,000
668,000
Cash Dividends
Date
Explanation
Ref.
Debit
Credit
Balance
Feb. 1
Dec. 1
Dec. 31
60,000
66,000
126,000
60,000
126,000
0
Stock Dividends
Date
Explanation
Ref.
Debit
Credit
Balance
July 1
Dec. 31
156,000
156,000
156,000
0
PROBLEM 11-4A (Continued)
(c) GEFFREY CORPORATION
Balance Sheet (Partial)
December 31, 2015
Stockholders’ equity
Paid-in capital
Capital stock
Common stock, $10 par value, 132,000
shares issued and outstanding …………… $1,320,000
Additional paid-in capital
PROBLEM 11-5A
(a)
Retained Earnings
Sept. 1 Prior Per. Adj. 63,000
Dec. 31 Cash Dividends 250,000
Dec. 31 Stock Dividends 400,000
Jan. 1 Balance 1,170,000
Dec. 31 Net Income 585,000
Dec. 31 Balance 1,042,000
(b) STOREY CORPORATION
Retained Earnings Statement
For the Year Ended December 31, 2015
Balance, January 1, as reported ………………. $1,170,000
Correction of overstatement of 2014 net
income because of understatement of
(c) STOREY CORPORATION
Partial Balance Sheet
December 31, 2015
Stockholders’ equity
Paid-in capital
Capital stock
6% Preferred stock,
$50 par value, cumulative,
PROBLEM 11-5A (Continued)
STOREY CORPORATION (Continued)
Common stock, $10 par value,
500,000 shares authorized,
250,000 shares issued and
outstanding ………………………. $2,500,000
Common stock dividends
(d) Total cash dividend ………………………………… $250,000
Allocated to preferred stock
Dividend in arrears—2014
PROBLEM 11–6A
(a) (1) Land ………………………………………………….. 140,000
(2) Cash (400,000 X $7.00) ………………………… 2,800,000
(3) Treasury Stock (1,500 X $11) ……………….. 16,500
(4) Cash (500 X $14) …………………………………. 7,000
PROBLEM 11-6A (Continued)
(b) IRWIN CORPORATION
Stockholders’ equity
Paid-in capital
Capital stock
10% Preferred stock, $100
par value, noncumulative,
20,000 shares authorized,
PROBLEM 11-7A
(a) Jan. 15 Cash Dividends (75,000 X $1) ………….. 75,000
Feb. 15 Dividends Payable ………………………….. 75,000
Apr. 15 Stock Dividends (7,500 X $14) …………. 105,000
May 15 Common Stock Dividends
July 1 Memo—two-for-one stock split
31 Income Summary ……………………………. 250,000
31 Retained Earnings ………………………….. 174,000
31 Retained Earnings ………………………….. 105,000
PROBLEM 11-7A (Continued)
(b)
Common Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
May 15
July 1
Balance
2 for 1 stock split—
new par value = $5
75,000
750,000
825,000
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Apr. 15
Balance
30,000
200,000
230,000
Retained Earnings
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Dec. 31
31
31
Balance
Cash dividends
Stock dividends
Net income
174,000
105,000
250,000
540,000
366,000
261,000
511,000
Cash Dividends
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 15
75,000
75,000
Dec. 1
99,000
174,000
Dec. 31
174,000
0
Stock Dividends
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 15
105,000
105,000
Dec. 31
105,000
0
Common Stock Dividends Distributable
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 15
May 15
75,000
75,000
75,000
0