wiley wk1 assignment

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Brief Exercise 15-9 Shamrock Corporation has outstanding 22,000 shares of $5 par value common stock. On August 1, 2017, Shamrock reacquired 210 shares at $82 per share. On November 1, Shamrock reissued the 210 shares at $73 per share. Shamrock had no previous treasury stock transactions. Prepare Shamrock’s journal entries to record these transactions using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 8/1/17 11/1/17 Click if you would like to Show Work for this question: Open Show Work Brief Exercise 15-12 Splish Mining Company declared, on April 20, a dividend of $529,000 payable on June 1. Of this amount, $131,000 is a return of capital. Prepare the April 20 and June 1 entries for Splish. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 20 June 1 Exercise 15-6 Pina Corporation is authorized to issue 46,000 shares of $5 par value common stock. During 2017, Pina took part in the following selected transactions. 1. Issued 5,000 shares of stock at $49 per share, less costs related to the issuance of the stock totaling $5,400. 2. Issued 1,200 shares of stock for land appraised at $46,000. The stock was actively traded on a national stock exchange at approximately $50 per share on the date of issuance. 3. Purchased 480 shares of treasury stock at $44 per share. The treasury shares purchased were issued in 2013 at $41 per share. (a) Prepare the journal entry to record item 1. (b) Prepare the journal entry to record item 2. (c) Prepare the journal entry to record item 3 using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) (c) Exercise 15-7 Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then entered into the following transactions. 1. Purchased 5,000 treasury shares at $45 per share. 2. Resold 2,000 of the treasury shares at $49 per share. 3. Resold 500 of the treasury shares at $40 per share. Indicate the effect each of the three transactions has on the financial statement categories listed in the table below, assuming Joe Dumars Company uses the cost method. # Assets Liabilities Stockholders’ Equity Paid-in Capital Retained Earnings Net Income 1. 2. 3. Exercise 15-10 For a recent 2-year period, the balance sheet of Buffalo Company showed the following stockholders’ equity data at December 31 (in millions). Additional paid-in capital Common stock 2017 $ 900 663 2016 $ 810 654 Retained earnings Treasury stock Total stockholders’ equity Common stock shares issued Common stock shares authorized Treasury stock shares 7,200 1,764 5,310 896 $6,999 $5,878 221 500 36 218 500 28 (a) Answer the following questions. (1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.) Par value of common stock $ (2) What is the cost per share of treasury stock at December 31, 2017, and at December 31, 2016? Cost per share of Treasury stock December 31, 2017 December 31, 2016 $ $ (b) Prepare the stockholders’ equity section at December 31, 2017. (Enter account name only and do not provide descriptive information.) Buffalo Company Balance Sheet (in millions of dollars) (Partial) $ : $ Exercise 15-12 Carla Corporation has 10.70 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 86 cents per share cash dividend to stockholders of record as of June 14, payable June 30. Prepare the journal entries for each of the dates above assuming the dividend represents a distribution of earnings. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT How would the entries differ if the dividend were a liquidating dividend? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question:Open Show Work Exercise 15-17 Monty Corporation’s post-closing trial balance at December 31, 2017, is shown as follows. MONTY CORPORATION POST-CLOSING TRIAL BALANCE DECEMBER 31, 2017 Dr. Accounts payable Accounts receivable Accumulated depreciation—buildings Additional paid-in capital in excess of par—common From treasury stock Allowance for doubtful accounts Bonds payable Buildings Cash Common stock ($1 par) Dividends payable (preferred stock—cash) Inventory Land Preferred stock ($50 par) Prepaid expenses Retained earnings Treasury stock (common at cost) Totals Cr. $ 273,600 $ 496,000 176,000 1,428,000 146,000 32,000 290,000 1,466,000 198,000 182,000 4,400 569,000 381,000 450,000 42,000 329,000 159,000 $3,311,000 $3,311,000 At December 31, 2017, Monty had the following number of common and preferred shares. Authorized Issued Outstanding Common 546,000 182,000 169,000 Preferred 54,000 9,000 9,000 The dividends on preferred stock are $4 cumulative. In addition, the preferred stock has a preference in liquidation of $50 per share. Prepare the stockholders’ equity section of Monty’s balance sheet at December 31, 2017. (Enter account name only and do not provide descriptive information.) MONTY CORPORATION Stockholders’ Equity $ : $ Exercise 15-21 The outstanding capital stock of Waterway Corporation consists of 1,800 shares of $100 par value, 7% preferred, and 4,500 shares of $50 par value common. Assuming that the company has retained earnings of $86,500, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions. (a) The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.) Preferred $ Common $ (b) The preferred stock is cumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.) Preferred $ Common $ (c) The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.) Preferred $ Common $ Click if you would like to Show Work for this question: Open Show Work Brief Exercise 16-11 Larkspur Corporation had 291,000 shares of common stock outstanding on January 1, 2017. On May 1, Larkspur issued 31,200 shares. (a) Compute the weighted-average number of shares outstanding if the 31,200 shares were issued for cash. $ Weighted-average number of shares outstanding (b) Compute the weighted-average number of shares outstanding if the 31,200 shares were issued in a stock dividend. $ Weighted-average number of shares outstanding Click if you would like to Show Work for this question:Open Show Work Exercise 16-4 On January 1, 2016, when its $30 par value common stock was selling for $80 per share, Bridgeport Corp. issued $11,500,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation’s common stock. The debentures were issued for $12,420,000. The present value of the bond payments at the time of issuance was $9,775,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2017, the corporation’s $30 par value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2018, when the corporation’s $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums. (a) Prepare the entry to record the original issuance of the convertible debentures. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Prepare the entry to record the exercise of the conversion option, using the book value method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Exercise 16-10 On November 1, 2017, Ivanhoe Company adopted a stock-option plan that granted options to key executives to purchase 21,600 shares of the company’s $10 par value common stock. The options were granted on January 2, 2018, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $324,000. All of the options were exercised during the year 2020: 14,400 on January 3 when the market price was $64, and 7,200 on May 1 when the market price was $73 a share. Prepare journal entries relating to the stock option plan for the years 2018, 2019, and 2020. Assume that the employee performs services equally in 2018 and 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit Jan. 3, 2020 May 1, 2020 Exercise 16-14 Larkspur Company issues 12,000 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2017. The stock has a fair value of $600,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until December 31, 2021. The par value of the stock is $10. At December 31, 2017, the fair value of the stock is $401,000. (a) Prepare the journal entries to record the restricted stock on January 1, 2017 (the date of grant), and December 31, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit (b) On July 25, 2021, Tokar leaves the company. Prepare the journal entry to account for this forfeiture. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 7/25/21 Exercise 16-24 The Oriole Corporation issued 10-year, $4,430,000 par, 7% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value of $1,000, with interest payable annually. The current conversion ratio is 14:1, and in 2 years it will increase to 19:1. At the date of issue, the bonds were sold at 96. Bond discount is amortized on a straight-line basis. Oriole’s effective tax was 35%. Net income in 2017 was $9,050,000, and the company had 1,885,000 shares outstanding during the entire year. (a) Compute both basic and diluted earnings per share. (Round answers to 2 decimal places, e.g. $2.55.) Basic earnings per share Diluted earnings per share $ $ Exercise 16-18 Sarasota Inc. presented the following data. Net income $2,530,000 Preferred stock: 47,000 shares outstanding, $100 par, 8% cumulative, not convertible Common stock: Shares outstanding 1/1 4,700,000 777,600 Issued for cash, 5/1 308,400 Acquired treasury stock for cash, 8/1 146,400 2-for-1 stock split, 10/1 Compute earnings per share. (Round answer to 2 decimal places, e.g. $2.55.) Earnings per share $
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Explanation & Answer

Attached.

Brief Exercise 15-9
Shamrock Corporation has outstanding 22,000 shares of $5 par value common stock. On August 1,
2017, Shamrock reacquired 210 shares at $82 per share. On November 1, Shamrock reissued
the 210 shares at $73 per share. Shamrock had no previous treasury stock transactions.
Prepare Shamrock’s journal entries to record these transactions using the cost method. (Credit
account titles are automatically indented when amount is entered. Do not indent manually.
If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date

Account Titles and Explanation

Debit

Credit

8/1/17

11/1/17

Click if you would like to Show Work for this question: Open Show Work
Brief Exercise 15-12
Splish Mining Company declared, on April 20, a dividend of $529,000 payable on June 1. Of this
amount, $131,000 is a return of capital.
Prepare the April 20 and June 1 entries for Splish. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is required, select
"No Entry" for the account titles and enter 0 for the amounts.)
Date

Account Titles and Explanation

Debit

Credit

Apr. 20

June 1

Exercise 15-6
Pina Corporation is authorized to issue 46,000 shares of $5 par value common stock. During 2017,
Pina took part in the following selected transactions.
1. Issued 5,000 shares of stock at $49 per share, less costs related to the issuance of the stock
totaling $5,400.
2. Issued 1,200 shares of stock for land appraised at $46,000. The stock was actively traded on a
national stock exchange at approximately $50 per share on the date of issuance.
3. Purchased 480 shares of treasury stock at $44 per share. The treasury shares purchased were
issued in 2013 at $41 per share.
(a) Prepare the journal entry to record item 1.
(b) Prepare the journal entry to record item 2.

(c) Prepare the journal entry to record item 3 using the cost method.
(Credit account titles are automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the
amounts.)
No. Account Titles and Explanation

Debit

Credit

(a)

(b)

(c)

Exercise 15-7
Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued
at $30 per share. Joe Dumars then entered into the following transactions.
1.

Purchased 5,000 treasury shares at $45 per share.

2.

Resold 2,000 of the treasury shares at $49 per share.

3.

Resold 500 of the treasury shares at $40 per share.

...


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