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Category > Accounting Posted 19 Apr 2017 My Price 12.00

ACC 201 Chapter 11 Problem set A

ACC 201 Chapter 11 Problem set A

Problem 11-1A (Part Level Submission)

Burke Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.

Jan. 10

  

Issued 100,000 shares of common stock for cash at $5 per share.

Mar. 1

  

Issued 5,000 shares of preferred stock for cash at $105 per share.

Apr. 1

  

Issued 18,000 shares of common stock for land. The asking price of the land was $98,000. The fair value of the land was $92,000.

May 1

  

Issued 80,000 shares of common stock for cash at $4.5 per share.

Aug. 1

  

Issued 10,000 shares of common stock to attorneys in payment of their bill of $30,000 for services provided in helping the company organize.

Sept. 1

  

Issued 10,000 shares of common stock for cash at $5 per share.

Nov. 1

  

Issued 1,000 shares of preferred stock for cash at $108 per share.

Problem 11-2A (Part Level Submission)

Elston Corporation had the following stockholders’ equity accounts on January 1, 2014: Common Stock ($5 par) $400,000, Paid-in Capital in Excess of Par—Common Stock $200,000, and Retained Earnings $100,000. In 2014, the company had the following treasury stock transactions.

Mar. 1

  

Purchased 5,000 shares at $9 per share.

June 1

  

Sold 500 shares at $12 per share.

Sept. 1

  

Sold 2,500 shares at $10 per share.

Dec. 1

  

Sold 1,000 shares at $6 per share.


Elston Corporation uses the cost method of accounting for treasury stock. In 2014, the company reported net income of $34,000.

Problem 11-3A (Part Level Submission)

The stockholders’ equity accounts of Terrell Corporation on January 1, 2014, were as follows.

Preferred Stock (9%, $50 par, cumulative, 10,000 shares authorized)

  

$  400,000

Common Stock ($1 stated value, 2,000,000 shares authorized)

  

1,000,000

Paid-in Capital in Excess of Par—Preferred Stock

  

100,000

Paid-in Capital in Excess of Stated Value—Common Stock

  

1,450,000

Retained Earnings

  

1,816,000

Treasury Stock (20,000 common shares)

  

50,000


During 2014, the corporation had the following transactions and events pertaining to its stockholders’ equity.

Feb. 1

  

Issued 25,000 shares of common stock for $120,000.

Apr. 14

  

Sold 9,000 shares of treasury stock—common for $46,000.

Sept. 3

  

Issued 7,000 shares of common stock for a patent valued at $42,000.

Nov. 10

  

Purchased 1,000 shares of common stock for the treasury at a cost of $6,000.

Dec. 31

  

Determined that net income for the year was $452,000.


No dividends were declared during the year.

Problem 11-4A (Part Level Submission)

On January 1, 2014, Prasad Corporation had the following stockholders’ equity accounts.

Common Stock ($25 par value, 48,000 shares issued and outstanding)

  

$1,200,000

Paid-in Capital in Excess of Par—Common Stock

  

200,000

Retained Earnings

  

600,000


During the year, the following transactions occurred.

Feb. 1

  

Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1.

Mar. 1

  

Paid the dividend declared in February.

Apr. 1

  

Announced a 5-for-1 stock split. Prior to the split, the market price per share was $36.

July 1

  

Declared a 10% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $7 per share.

31

  

Issued the shares for the stock dividend.

Dec. 1

  

Declared a $0.40 per share dividend to stockholders of record on December 15, payable January 5, 2015.

31

  

Determined that net income for the year was $350,000.

Problem 11-6A (Part Level Submission)

Jude Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $2.5 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders’ equity.

Preferred Stock

  

$120,000

Paid-in Capital in Excess of Par—Preferred Stock

  

12,000

Common Stock

  

1,000,000

Paid-in Capital in Excess of Stated Value—Common Stock

  

1,600,000

Treasury Stock (1,000 common shares)

  

9,000

Paid-in Capital from Treasury Stock

  

1,000

Retained Earnings

  

82,000


The preferred stock was issued for land having a fair value of $132,000. All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $9. In December, 500 shares of treasury stock were sold for $11 per share. No dividends were declared in 2014.

Problem 11-7A (Part Level Submission)

On January 1, 2014, Primo Corporation had the following stockholders' equity accounts.

Common Stock ($10 par value, 75,000 shares issued and outstanding)

  

$750,000

Paid-in Capital in Excess of Par Value-Common Stock

  

200,000

Retained Earnings

  

540,000



During the year, the following transactions occurred.

Jan. 15

 

Declared a $1  cash dividend per share to stockholders of record on January 31, payable February 15.

Feb. 15

 

Paid the dividend declared in January.

Apr. 15

 

Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $14  per share.

May 15

 

Issued the shares for the stock dividend.

July 1

 

Announced a 2-for-1 stock split. The market price per share prior to the announcement was $15. (The new par value is $5.)

Dec. 1

 

Declared a $0.60 per share cash dividend to stockholders of record on December 15, payable January 10, 2015.

Dec. 31

 

Determined that net income for the year was $250,000.

 

 

 

Answers

SmartExpert
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Status NEW Posted 19 Apr 2017 08:04 AM My Price 12.00

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file 1492590955-ACC 201 Chapter 11 Problem set A Answers.docx preview (2069 words )
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