PROBLEM 11-3B (Continued)
Paid-in Capital in Excess of Par—Preferred Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
20,000
Paid-in Capital in Excess of Stated Value—Common Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Feb. 1
Sept. 3
Balance
J1
J1
10,500
9,000
425,000
435,500
444,500
Paid-in Capital from Treasury Stock
Date
Explanation
Ref.
Debit
Credit
Balance
June 14
J1
4,000
4,000
Retained Earnings
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Dec. 31
Balance
J1
350,000
488,000
838,000
Treasury Stock
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Mar. 20
June 14
Balance
J1
J1
12,000
32,000
40,000
52,000
20,000
PROBLEM 11-3B (Continued)
(c) LORE CORPORATION
Stockholders’ equity
Paid-in capital
Capital stock
10% Preferred stock, $100
par value, noncumulative,
5,000 shares authorized,
3,000 shares issued and
PROBLEM 11-4B
(a) Jan. 15 Cash Dividends (200,000 X $1) …………. 200,000
Feb. 15 Dividends Payable …………………………... 200,000
Apr. 15 Stock Dividends (20,000 X $15) ………… 300,000
May 15 Common Stock Dividends
July 1 Memo—two-for-one stock split
increases the number of shares
Dec. 1 Cash Dividends (440,000 X $.50) ………. 220,000
31 Income Summary …………………………….. 250,000
Retained Earnings …………………………... 420,000
Retained Earnings …………………………... 300,000
PROBLEM 11-4B (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 = $2.50
100,000
1,000,000
1,100,000
Common Stock Dividends Distributable
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 15
May 15
100,000
100,000
100,000
0
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Apr. 15
Balance
200,000
200,000
400,000
Retained Earnings
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Dec. 31
31
31
Balance
Net income
Cash dividends
Stock dividends
420,000
300,000
250,000
840,000
1,090,000
670,000
370,000
Cash Dividends
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 15
Dec. 1
31
200,000
220,000
420,000
200,000
420,000
0
PROBLEM 11-4B (Continued)
Stock Dividends
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 15
Dec. 31
300,000
300,000
300,000
0
(c) CHEN CORPORATION
Balance Sheet (Partial)
December 31, 2015
Stockholders’ equity
Paid-in capital
Capital stock
Common stock, $2.50 par value, 440,000
shares issued and outstanding…………… $1,100,000
Additional paid-in capital
PROBLEM 11–5B
(a)
ANDES COMPANY
Retained Earnings Statement
For the Year Ended December 31, 2015
Balance, January 1, as reported …………………. $ 900,000
Correction for overstatement of net
income in 2014 (depreciation error) ………… (65,000)
PROBLEM 11-5B (Continued)
(b) ANDES COMPANY
Partial Balance Sheet
Stockholders’ equity
Paid-in capital
Capital stock
Preferred stock, $100
par value, 8%, cumulative,
100,000 shares issued
PROBLEM 11-6B
(a)
Retained Earnings
Dec. 31 Cash Dividends 500,000
Dec. 31 Stock Dividends 360,000
Jan. 1 Balance 2,450,000
Dec. 31 Net Income 970,000
Dec. 31 Balance 2,560,000
(b) GIFFIN CORPORATION
Retained Earnings Statement
For the Year Ended December 31, 2015
Balance, January 1 ………………………………….. $2,450,000
Add: Net income ……………………………………. 970,000
3,420,000
(c) GIFFIN CORPORATION
Partial Balance Sheet
December 31, 2015
____________________________________________________________
Stockholders’ equity
Paid-in capital
Capital stock
6% Preferred stock, $100
par value, noncumulative,
callable at $125, 20,000
shares authorized, 10,000
shares issued and
PROBLEM 11-6B (Continued)
GIFFIN CORPORATION (Continued)
Additional paid-in capital
In excess of par—
preferred stock …………………. $ 200,000
In excess of stated value—
(d) Total dividend ……………………………………………………………… $500,000
PROBLEM 11-7B
(a) CRIVELLO CORPORATION
Stockholders’ equity
Paid-in capital
Capital stock
8% Preferred stock,
$50 par noncumulative,
16,000 shares issued ………… $ 800,000
Common stock, no par, $3
stated value, 800,000