CHAPTER 11 Corporations: Organization, Stock Transactions, and Dividends
Ex. 11–25
a. OfficeMax:
=Earnings per Share
Net Income – Preferred Dividends
Avg. Number of Common Shares Outstanding
11-21
CHAPTER 11 Corporations: Organization, Stock Transactions, and Dividends
Prob. 11–1A
1.
Total Per Per
Dividends Total Share Total Share
2009………… $ 18,000 $18,000 $0.45 $ 0 $0.00
2. Average annual dividend for preferred: $0.75 per share ($4.50 ÷ 6)
PROBLEMS
Year
Preferred Dividends Common Dividends
11-22
CHAPTER 11 Corporations: Organization, Stock Transactions, and Dividends
Prob. 11–2A
11 Building 3,375,000
Land 1,500,000
May
11-23
CHAPTER 11 Corporations: Organization, Stock Transactions, and Dividends
Prob. 11–3A
a. Cash (360,000 shares × $22) 7,920,000
Common Stock (360,000 shares × $12) 4,320,000
d. Cash (51,000 shares × $21) 1,071,000
Treasury Stock (51,000 shares × $18) 918,000
11-24
CHAPTER 11 Corporations: Organization, Stock Transactions, and Dividends
Prob. 11–4A
1. and 2.
Jan. 1 Bal. 7,500,000
Apr. 10 1,500,000
Jan. 1 Bal. 825,000
Apr. 10 300,000
Dec. 31 493,800 Jan. 1 Bal. 33,600,000
Jan. 1 Bal. 450,000 June 6 450,000
June 6 200,000
Common Stock
Paid-In Capital in Excess of Stated Value—Common Stock
Retained Earnings
Treasury Stock
Paid-In Capital from Sale of Treasury Stock
11-25
2.
Jan. 22 Cash Dividends Payable [(375,000 shares – 25,000
shares) × $0.08] 28,000
Cash 28,000
July 5 Stock Dividends [(375,000 shares + 75,000 shares)
× 4% × $25] 450,000
Stock Dividends Distributable (18,000 shares
× $20) 360,000
Paid-In Capital in Excess of Stated Value—
Common Stock [18,000 shares × ($25 – $20)] 90,000
Aug. 15 Stock Dividends Distributable 360,000
Common Stock 360,000
11-26
CHAPTER 11 Corporations: Organization, Stock Transactions, and Dividends
Prob. 11–4A (Concluded)
3.
Retained earnings, January 1, 2014 $33,600,000
4.
Paid-in capital:
Common stock, $20 stated value (500,000 shares
authorized, 468,000 shares issued) $9,360,000
Stockholders’ Equity
MORROW ENTERPRISES INC.
Retained Earnings Statement
For the Year Ended December 31, 2014
11-27
CHAPTER 11 Corporations: Organization, Stock Transactions, and Dividends
Prob. 11–5A
Jan. 9 No entry required. The stockholders’ ledger
would be revised to record the increased
number of shares held by each stockholder and
new par value.
Sept. 7 Cash (30,000 shares × $34) 1,020,000
Treasury Stock (30,000 shares × $28) 840,000
Paid-In Capital from Sale of Treasury Stock
[30,000 shares × ($34 – $28)] 180,000
Oct. 1 Cash Dividends {(75,000 shares × $0.80)
+ [(1,200,000 shares – 10,000 shares) × $0.12]} 202,800
11-28
CHAPTER 11 Corporations: Organization, Stock Transactions, and Dividends
Prob. 11–1B
1.
Total Per Per
Dividends Total Share Total Share
2009………
…
$ 24,000 $ 24,000 $ 0.96 $0 $0.00
Year
Preferred Dividends Common Dividends
11-29
…
…
…
…
…
CHAPTER 11 Corporations: Organization, Stock Transactions, and Dividends
Prob. 11–2B
9 Cash 1,500,000
Mortgage Note Payable 1,500,000
Oct.
11-30
CHAPTER 11 Corporations: Organization, Stock Transactions, and Dividends
Prob. 11–3B
a. Treasury Stock (87,500 shares × $8) 700,000
Cash 700,000
b. Cash (55,000 shares × $11) 605,000
d. Cash (400,000 shares × $13) 5,200,000
Common Stock (400,000 shares × $9) 3,600,000
Paid-In Capital in Excess of Par—Common
Stock [400,000 shares × ($13 – $9)] 1,600,000
11-31