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779
Exercise 13-18 (Concluded)
Part 2
ALEXANDER CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2017
Retained earnings, December 31, 2016 ...........................
$340,000
Part 3
ALEXANDER CORPORATION
Stockholders’ Equity Section of the Balance Sheet
December 31, 2017
Common stock⎯$25 par value, 50,000 shares
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 13
780
PROBLEM SET A
Problem 13-1A (30 minutes)
Part 1
a. To record sale of 10,000 ($250,000/$25 per share) shares of $25 par
value common stock for $30 ($300,000/10,000 shares) per share.
Part 2
Part 3
Part 4
Total paid-in capital from common stockholders
Part 5
Book value per common share
781
Problem 13-2A (60 minutes)
Part 1
Jan. 1
Treasury Stock, Common .............................................
80,000
Jan. 5
Retained Earnings .........................................................
72,000
July 6
Cash* ...............................................................................
36,000
Aug. 22
Cash* ...............................................................................
42,500
782
Problem 13-2A (Concluded)
Part 2
KOHLER CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2017
Retained earnings, December 31, 2016 ...........................
$270,000
Part 3
KOHLER CORPORATION
Stockholders’ Equity Section of the Balance Sheet
December 31, 2017
Common stock⎯$10 par value, 100,000 shares
783
Problem 13-3A (45 minutes)
Part 1
Explanations for each of the journal entries
Oct. 2
Declared a cash dividend of $2 per share of common stock.
($60,000 / 30,000 shares)
Part 2
Oct. 2
Oct. 25
Oct. 31
Nov. 5
Dec. 1
Dec. 31
Common stock .............
$360,000
$360,000
$360,000
$396,000
$396,000
$396,000
784
Problem 13-4A (45 minutes)
Part 1
Outstanding common shares
Jan. 5
Apr. 5
July 5
Oct. 5
Beginning balance .........................
40,000
40,000
40,000
40,000
Part 2
Cash dividend amounts
Jan. 5
Apr. 5
July 5
Oct. 5
Part 3
Capitalization of retained earnings for small stock dividend
Number of shares ........................................................................
7,400
Part 5
Net income
Retained earnings, beginning balance ......................................
$320,000
Less dividends: Jan. 5 ..............................................................
(20,000)
785
Problem 13-5A (40 minutes)
2. Computation of par values of stock
3. Book value with no dividends in arrears
Common stock
4. Book value with two years’ dividends in arrears
786
Problem 13-5A (Concluded)
5. Dividend allocation in total
Preferred
Common
Total
6. Equity represents the residual interest of owners in the assets of the
business after subtracting claims of creditors. With few exceptions,
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 13
PROBLEM SET B
Problem 13-1B (30 minutes)
Part 1
a. To record sale of 3,000 ($3,000/$1 per share) shares of $1 par value
Part 2
Number of outstanding shares
Part 3
Part 4
Total paid-in capital from common stockholders
From transaction (a) ............................
$120,000
Part 5
Book value per common share
Problem 13-2B (60 minutes)
Part 1
Jan. 10
Treasury Stock, Common .............................................
480,000
Cash ..........................................................................
480,000
Purchased treasury stock (40,000 x $12).
789
Problem 13-2B (Concluded)
Part 2
BALTHUS CORP.
Statement of Retained Earnings
For Year Ended December 31, 2017
Part 3
BALTHUS CORP.
Stockholders’ Equity Section of the Balance Sheet
December 31, 2017
Common stock⎯$1 par value, 320,000 shares
790
Problem 13-3B (45 minutes)
Part 1
Explanations for each of the journal entries
Jan. 17
Declared a cash dividend of $1 per share of common stock.
($96,000 / 96,000 shares)
Part 2
Jan. 17
Feb. 5
Feb. 28
Mar. 14
Mar. 25
Mar. 31
