Accounting Exercises, writing homework help

User Generated

nfqswxy

Business Finance

Description

please complete all assignments due saturday night

Unformatted Attachment Preview

Dividends Per Share Fairmount Inc., a developer of radiology equipment, has stock outstanding as follows: 15,000 shares of cumulative preferred 2% stock, $160 par, and 50,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $32,100; second year, $44,700; third year, $93,700; fourth year, $121,500. Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0". 1st Year 2nd Year 3rd Year 4th Year $ $ $ Preferred stock (dividend per share) $ $ Common stock (dividend per share) On January 14, Peerless Rocks Inc., a marble contractor, issued for cash 55,000 shares of $25 par common stock at $85, and on March 17, it issued for cash 100,000 shares of $5 par preferred stock at $8. a. Journalize the entries for January 14 and March 17. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 14 Mar. 17 b. What is the total amount invested (total paid-in capital) by all stockholders as of March 17? Issuing Stock Newgen Products Inc., a wholesaler of office products, was organized on January 30 of the current year, with an authorization of 100,000 shares of 2% preferred stock, $60 par and 450,000 shares of $20 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions. Jan. 30. Issued 105,000 shares of common stock at par for cash. Jan. 30 Jan. 31 Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. Jan. 31 Feb. 21. Issued 21,500 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $78,000, $427,000, and $97,000, respectively. For a compound transaction, if an amount box does not require an entry, leave it blank. Feb. 21 Mar. 2. Issued 23,000 shares of preferred stock at $75 for cash. For a compound transaction, if an amount box does not require an entry, leave it blank. Mar. 2
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

1st year

2nd year

3rd year

4th year

Preferred stock (Dividend per share)

2.14

2.98

4.48

3.2

Common stock (Dividend per share)

0

0

0.53

1.47

a)
Dr

Cr

Jan 14
Cash

4,675,000

Common stock

1,375,000

Paid-in capital excess of par(Common stock)

3,300,000

March 17

Cash

800,000

Preferred stock

500,000

Paid-in capital excess of par (Preferred stock)

300,000

b) Total paid in capital
=4675000+800000 =5,475,000

DR

CR

Jan 30
Cash

2,100,000

Common Stock

2,100,000

Jan 31
Legal fees
Common stock

8000
8000

Feb 21
Dr
Land

78,000

Buildings

427,000

Equipment

97,000

Cr

Common stock

430,000

Paid-in capital excess of par(Common stock)

172,000

Mar 2

Dr

Cr

Cash

1,725,000

Preferred stock

1,380,000

Paid-in capital excess of par (Preferred stock)

345,000

Dr

Cr

April 1
Cash dividends

78,200

Cash dividends payable

78,200

To record declaration of dividends
May 1
No Entry Required
June 3
Cash dividends payable
Cash
To record payment of dividends

78,200
78,200

Dr

Cr

April27
Treasury stock

303,600

Cash

303,600

July 13
Cash

233,600

Treasury stock

211,200

Paid-in capital from sale of treasury stock

22,400

Oct 8
Cash

88,200

Paid-in capital from sale of treasury stock

4,200

Treasury stock

92,400

b) = 211,200 – 4,200 = 207,000
c) Beaverhead Inc. may have purchased the treasury stock to provide shares for resale to employees,
reissue the shares as bonuses or to support the market price of the stock.

Stockholders’ Equity
Paid-in capital:
Common stock, $15 par

$184,500

Excess of issue price over par

$14,760

From sale of treasury stock

$199,260
$8,000

Total paid-in capital

$207,260

Retained earnings

$305,000

Total

512,260

Deduct treasury stock

$11,495

Total stockholders’ equity

$500,765

Retained Earnings Statement
For the Year Ended October 31, 2014
Retained earnings November 1, 2013

$371,900

Net income

$48,300

Less: dividends declared

$25,100

Increase in retained earnings

23,200

Retained earnings, October 31, 2014

$395,100

Feb 10
No entry

May 1
Dr
Cash dividends

19,940

Cash dividends payable

19,940

June 15
Cash dividend payable

Cr

19,940

Cash

19,940

Nov 1

Dr

Cash dividends

18,920

Cash Dividend payable

Stock dividends

Cr

18,920

95,880

Common stock dividend payab...


Anonymous
I was stuck on this subject and a friend recommended Studypool. I'm so glad I checked it out!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags