General Instructions
1. The following worksheet may be used to complete the exercise/problem.
You may need to refer to your textbook for additional information.
3. The completed exercise/problem may be printed or e-mailed per direction from your instructor.
P11-1A
Stockholders’ Equity
Preferred stock, $100 par, 7%, 2,000 shares authorized, 1,000
KEBLER COMPANY
PARTIAL BALANCE SHEET
DECEMBER 31, 2016
declared the annual cash dividend to preferred stockholders and a cash dividend of $5 per share
During 2016, Kebler established an employee benefit plan and acquired 1,000 shares of
common stock at $60 per share as treasury stock for that purpose. Later in 2016, it resold 100
shares of the stock at $65 per share.
On December 31, 2016, Kebler determined its net income for the year to be $80,000. The firm
shares of common stock at $80 per share. On January 20, it issued 2,000 shares of common
stock to acquire a building site at a time when the stock was selling for $70 per share.
Required
Develop the Stockholders’ Equity category of Kebler’s balance sheet as of December
31, 2016. Indicate on the statement the number of shares authorized, issued, and
outstanding for both preferred and common stock.
Kebler Company was incorporated as a new business on January 1, 2016. The corporate
charter approved on that date authorized the issuance of 2,000 shares of $100 par, 7%
cumulative, nonparticipating preferred stock and 20,000 shares of $5 par common stock. On
January 10, Kebler issued for cash 1,000 shares of preferred stock at $120 per share and 8,000
General Instructions
2. The blue cells are for data entry. Enter text in the T cells, formulas in the F cells, and
dollars or numbers in the $ cells.
Common stock, $5 par, 10,000 shares authorized, 5,000 shares issued,
4,600 shares outstanding
P11-1
Required
Stockholders’ Equity
50,000$
PEELER COMPANY
PARTIAL BALANCE SHEET
DECEMBER 31, 2016
Preferred stock, $100 par, 7%, 1,000 shares authorized, 500 shares
issued and outstanding
General Instructions
1. The following worksheet may be used to complete the exercise/problem.
You may need to refer to your textbook for additional information.
3. The completed exercise/problem may be printed or e-mailed per direction from your instructor.
P11-5A
80,000$
60,000
Total contributed capital
Retained earnings
10,000 shares issued and outstanding
a
b On June 1, declared an 8% stock dividend on common stock. The current market
c
d
Common Stock Distributable increases by $8,000 (10,000 × 8% × $10). Additional
Retained Earnings decreases by $20,800. Total stockholders’ equity does not
Total stockholders’ equity remains unchanged.
Required
Mar. 1
was selling for $30 per share.
1. Explain each transaction’s effect on the stockholders’ equity accounts and the total
stockholders’ equity.
Cash dividends increase (or Retained Earnings decreases) and total stockholders’
equity decreases.
On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the
dividend on April 1.
price of the common stock was $26. The stock was issued on July 1.
On September 1, declared a cash dividend of $0.70 per share on the common
stock; paid the dividend on October 1.
On December 1, issued a 3-for-1 stock split of common stock, when the stock
The preferred stock is noncumulative and nonparticipating. During 2016, the following
transactions occurred:
On January 1, 2016, Svenberg Inc.’s Stockholders’ Equity category appeared as follows:
Preferred stock, $80 par value, 8%,
1,000 shares issued and outstanding
Common stock, $10 par value,
Common stock, $3.33 par, 32,400 shares issued
and outstanding
Total contributed capital
2. Develop the Stockholders’ Equity category of the balance sheet. Assume that the
80,000$
for small stock dividends). The number of outstanding shares is increased, and the par value
of the shares is unchanged. In a stock split, there is no change to any of the capital accounts.
There is an increase in the number of outstanding shares, which is offset by a corresponding
decrease in the par value of those shares.
The value of the shares issued in the stock dividend is deducted from the Retained Earnings
account and added to the Capital Stock account (and the Additional Paid-In Capital account
3. Write a paragraph that explains the difference between a stock dividend and a
stock split.
A stock dividend results in the capitalization of part of the Retained Earnings account.
SVENBERG INC.
PARTIAL BALANCE SHEET
DECEMBER 31, 2016
Stockholders’ Equity:
Preferred stock, $80 par, 8%, 1,000 shares issued
and outstanding
net income for the year was $720,000.
[(10,000 + 800) × $0.70].
Total stockholders’ equity does not change
The par value of common stock changes from $10 to $3.33 as the number of
shares issued and outstanding triples from 10,800 to 32,400, but the total par value
does not change. The total stockholders’ equity also does not change.
Common Stock Distributable decreases, and Common Stock increases by $8,000.
Retained Earnings and total stockholders’ equity decrease by $7,560
General Instructions
2. The blue cells are for data entry. Enter text in the T cells, formulas in the F cells, and
dollars or numbers in the $ cells.
P11-6A
Required
Balance, January 1 $ – $ – $ – $ – $ –
FOR THE YEAR ENDED DECEMBER 31, 2016
Preferred
Stock
Common
Stock
Paid-In
Capital
Treasury
Stock
Retained
Earnings
Refer to all of the facts in Problem 11-1A.
Develop a statement of stockholders’ equity for Kebler Company for 2016. The statement
should start with the beginning balance of each stockholders’ equity account and explain
the changes that occurred in each account to arrive at the 2016 ending balances.
KEBLER COMPANY
STATEMENT OF STOCKHOLDERS EQUITY
General Instructions
1. The following worksheet may be used to complete the exercise/problem.
You may need to refer to your textbook for additional information.
3. The completed exercise/problem may be printed or e-mailed per direction from your instructor.
P11-6
Required
Balance, January 1 $ – $ – $ – $ – $ –
50,000 10,000
Sale of common stock
Sale of preferred stock
FOR THE YEAR ENDED DECEMBER 31, 2016
Preferred
Stock
Common
Stock
Paid-In
Capital
Treasury
Stock
Retained
Earnings
Refer to all of the facts in Problem 11-1.
Develop a statement of stockholders’ equity for Peeler Company for 2016. The statement
should start with the beginning balance of each stockholders’ equity account and explain
the changes that occurred in each account to arrive at the 2016 ending balances.
PEELER COMPANY
STATEMENT OF STOCKHOLDERS’ EQUITY
General Instructions
2. The blue cells are for data entry. Enter text in the T cells, formulas in the F cells,
dollars or numbers in the $ cells.
P11-12A
400,000$
280,000
12,000
980,000
2,000
1,674,000$
80,000
(12,800)
Total stockholders’ equity $ ?
4. The par value of the common stock
5. The average per-share sales price of the common stock when issued
2. The number of shares of preferred stock outstanding
3. The average per-share sales price of the preferred stock when issued
Required
Determine the following items based on Carter’s balance sheet.
1. The number of shares of preferred stock issued
Additional paid-in capital—Preferred
Additional paid-in capital—Common
Additional paid-in capital—Treasury stock
Total contributed capital
Retained earnings
Less: Treasury stock, preferred, 200 shares
The Stockholders’ Equity section of the December 31, 2016, balance sheet of Carter
Company appeared as follows:
Preferred stock, $50 par value,
10,000 shares authorized, ? shares issued
Common stock, ? par value,
20,000 shares authorized, 14,000 shares issued