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PROBLEM 11-7A (Continued)
(c) PRIMO CORPORATION
Balance Sheet (Partial)
December 31, 2015
Stockholders’ equity
Paid-in capital
Capital stock
Common stock, $5 par value, 165,000
PROBLEM 11-8A
(a) WESTIN CORPORATION
Stockholders’ equity
Paid-in capital
Capital stock
8% Preferred stock, $100
par value, noncumulative,
3,600 shares issued
PROBLEM 11-8A (Continued)
*(b) The book value of the common stock is $20.18 computed as follows:
*PROBLEM 11-9A
GOODHUE INC.
Stockholders’ Equity Statement
For the Year Ending December 31, 2015
(in thousands, except shares)
Common
Stock
Paid-in
Capital in
Excess of
Par —
Common
Stock
Common
Stock
Dividends
Distributable
Treasury
Stock
Retained
Earnings
Total
Balances, Jan. 1
$800
$500
$120
$ 0
$600
$2,020
Issued 60,000 share
for stock
dividend
120
(120)
0
Issued 30,000
shares for cash
60
60
120
Purchased
25,000 shares of
treasury stock
(125)
(125)
Declared cash
dividend
(111)
(111)
Sold 8,000 shares
of treasury stock
40
40
Net income for year
360
360
Balances, Dec. 31
$980
$560
$ 0
$ (85)
$849
$2,304
PROBLEM 11-1B
(a) Jan. 10 Cash (100,000 X $3) ................................ 300,000
Mar. 1 Cash (10,000 X $55) ................................ 550,000
Apr. 1 Land ......................................................... 75,000
May 1 Cash (75,000 X $4) .................................. 300,000
Aug. 1 Organization Expense ............................ 50,000
Common Stock (10,000 X $2) ......... 20,000
Sept. 1 Cash (5,000 X $6) .................................... 30,000
Common Stock (5,000 X $2) ........... 10,000
PROBLEM 11-1B (Continued)
Nov. 1 Cash (2,000 X $60) .................................. 120,000
(b)
Preferred Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
Nov. 1
J1
J1
400,000
80,000
400,000
480,000
Common Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 10
Apr. 1
May 1
Aug. 1
Sept. 1
J1
J1
J1
J1
J1
200,000
50,000
150,000
20,000
10,000
200,000
250,000
400,000
420,000
430,000
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
Nov. 1
J1
J1
150,000
40,000
150,000
190,000
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 10
Apr. 1
May 1
Aug. 1
Sept. 1
J1
J1
J1
J1
J1
100,000
25,000
150,000
30,000
20,000
100,000
125,000
275,000
305,000
325,000
PROBLEM 11-1B (Continued)
(c) MENDOZA CORPORATION
Paid-in capital
Capital stock
6% Preferred stock,
$40 par value,
20,000 shares authorized,
12,000 shares issued
PROBLEM 11-2B
(a) Mar. 1 Treasury Stock (5,000 X $7) ..................... 35,000
June 1 Cash (1,000 X $10) .................................... 10,000
Sept. 1 Cash (2,000 X $9) ...................................... 18,000
Dec. 1 Cash (1,000 X $5) ...................................... 5,000
31 Income Summary ...................................... 80,000
(b)
Paid-in Capital from Treasury Stock
Date
Explanation
Ref.
Debit
Credit
Balance
June 1
Sept. 1
Dec. 1
J12
J12
J12
2,000
3,000
4,000
3,000
7,000
5,000
Treasury Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
June 1
Sept. 1
Dec. 1
J12
J12
J12
J12
35,000
7,000
14,000
7,000
35,000
28,000
14,000
7,000
PROBLEM 11-2B (Continued)
Retained Earnings
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Dec. 31
Balance
J12
80,000
100,000
180,000
(c) HAWTHORNE CORPORATION
Stockholders’ equity
Paid-in capital
Capital stock
Common stock, $1 par,
400,000 shares issued and
PROBLEM 11-3B
(a) Feb. 1 Cash ....................................................... 25,500
Mar. 20 Treasury Stock (1,500 X $8) ................. 12,000
June 14 Cash ....................................................... 36,000
Sept. 3 Patents .................................................. 19,000
Dec. 31 Income Summary .................................. 350,000
(b)
Preferred Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
300,000
Common Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Feb. 1
Sept. 3
Balance
J1
J1
15,000
10,000
1,000,000
1,015,000
1,025,000
