Chapter 13 solutions, Schemes and Mind Maps for Accounting
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Chapter 13 solutions, Schemes and Mind Maps for Accounting

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CHAPTER 13 CORPORATIONS: ORGANIZATION, STOCK

TRANSACTIONS, AND DIVIDENDS

QUESTION INFORMATION

Number Objective Description Difficulty Time AACSB AICPA SS GL Q13-1 13-1 Easy 5 min Analytic FN-Measurement Q13-2 13-1 Easy 5 min Analytic FN-Measurement Q13-3 13-3 Easy 5 min Analytic FN-Measurement Q13-4 13-3 Easy 5 min Analytic FN-Measurement Q13-5 13-3 Easy 5 min Analytic FN-Measurement Q13-6 13-3 Easy 5 min Analytic FN-Measurement Q13-7 13-4 Easy 5 min Analytic FN-Measurement Q13-8 13-4 Easy 5 min Analytic FN-Measurement Q13-9 13-4 Easy 5 min Analytic FN-Measurement Q13-10 13-4 Easy 5 min Analytic FN-Measurement Q13-11 13-5 Easy 5 min Analytic FN-Measurement Q13-12 13-5 Easy 5 min Analytic FN-Measurement Q13-13 13-5 Easy 5 min Analytic FN-Measurement Q13-14 13-6 Easy 5 min Analytic FN-Measurement Q13-15 13-6 Easy 5 min Analytic FN-Measurement Q13-16 13-6 Easy 5 min Analytic FN-Measurement Q13-17 13-6 Easy 5 min Analytic FN-Measurement Q13-18 13-7 Easy 5 min Analytic FN-Measurement PE13-1A 13-3 Dividends per share Easy 10 min Analytic FN-Measurement PE13-1B 13-3 Dividends per share Easy 10 min Analytic FN-Measurement PE13-2A 13-3 Entries for issuing stock Easy 5 min Analytic FN-Measurement PE13-2B 13-3 Entries for issuing stock Easy 5 min Analytic FN-Measurement PE13-3A 13-4 Entries for cash

dividends Easy 5 min Analytic FN-Measurement

PE13-3B 13-4 Entries for cash dividends

Easy 5 min Analytic FN-Measurement

PE13-4A 13-4 Entries for stock dividends

Easy 10 min Analytic FN-Measurement

PE13-4B 13-4 Entries for stock dividends

Easy 10 min Analytic FN-Measurement

PE13-5A 13-5 Entries for treasury stock

Easy 10 min Analytic FN-Measurement

PE13-5B 13-5 Entries for treasury stock

Easy 10 min Analytic FN-Measurement

PE13-6A 13-6 Stockholders' equity section of balance sheet

Easy 5 min Analytic FN-Measurement

PE13-6B 13-6 Stockholders' equity section of balance sheet

Easy 5 min Analytic FN-Measurement

PE13-7A 13-6 Retained earnings statement

Easy 5 min Analytic FN-Measurement

PE13-7B 13-6 Retained earnings statement

Easy 5 min Analytic FN-Measurement

Ex13-1 13-3 Dividends per share Easy 10 min Analytic FN-Measurement

Ex13-2 13-3 Dividends per share Easy 10 min Analytic FN-Measurement Ex13-3 13-3 Entries for issuing par

stock Easy 10 min Analytic FN-Measurement

Ex13-4 13-3 Entries for issuing no- par stock

Easy 10 min Analytic FN-Measurement

Ex13-5 13-3 Issuing stock for assets other than cash

Easy 5 min Analytic FN-Measurement

Ex13-6 13-3 Selected stock transactions

Easy 15 min Analytic FN-Measurement

Ex13-7 13-3 Issuing stock Moderate 10 min Analytic FN-Measurement Ex13-8 13-3 Issuing stock Easy 10 min Analytic FN-Measurement Ex13-9 13-4 Entries for cash

dividends Easy 10 min Analytic FN-Measurement

Ex13-10 13-4 Entries for stock dividends

Moderate 15 min Analytic FN-Measurement

Ex13-11 13-5 Treasury stock transactions

Moderate 15 min Analytic FN-Measurement

Ex13-12 13-5, 13-6 Treasury stock transactions

Moderate 15 min Analytic FN-Measurement

Ex13-13 13-5, 13-6 Treasury stock transactions

Moderate 15 min Analytic FN-Measurement

Ex13-14 13-6 Reporting paid-in- capital

Easy 10 min Analytic FN-Measurement

Ex13-15 13-6 Stockholders' equity section of balance sheet

Easy 10 min Analytic FN-Measurement

Ex13-16 13-6 Stockholders' equity section of balance sheet

Easy 10 min Analytic FN-Measurement

Ex13-18 13-6 Retained earnings statement

Easy 10 min Analytic FN-Measurement

Ex13-17 13-6 Stockholders' equity section of balance sheet

Moderate 15 min Analytic FN-Measurement

Ex13-19 13-6 Statement of stockholders' equity

Moderate 15 min Analytic FN-Measurement Exl

Ex13-20 13-7 Effect of stock split Easy 5 min Analytic FN-Measurement Ex13-21 13-7 Effect of cash dividend

and stock split Easy 5 min Analytic FN-Measurement

Ex13-22 13-7 Selected dividend transactions, stock split

Moderate 15 min Analytic FN-Measurement

Ex13-23 FAI Dividend yield Easy 5 min Analytic FN-Measurement Ex13-24 FAI Dividend yield Easy 10 min Analytic FN-Measurement Ex13-25 FAI Dividend yield Moderate 10 min Analytic FN-Measurement Pr13-1A 13-3 Dividends on preferred

and common stock Moderate 1 hr Analytic FN-Measurement Exl

Pr13-2A 13-3 Stock transactions for corporate expansion

Moderate 45 min Analytic FN-Measurement KA

Pr13-3A 13-3, 13-4, 13-5

Selected stock transactions

Moderate 1 hr Analytic FN-Measurement KA

Pr13-4A 13-3, 13-4, 13-5, 13-6

Entries for selected corporate transactions

Difficult 1 hr Analytic FN-Measurement Exl KA

Pr13-5A 13-3, 13-4, 13-5, 13-7

Entries for selected corporate transactions

Moderate 1 hr Analytic FN-Measurement Exl KA

Pr13-1B 13-3 Dividends on preferred and common stock

Moderate 1 hr Analytic FN-Measurement Exl

Pr13-2B 13-3 Stock transactions for corporate expansion

Moderate 45 min Analytic FN-Measurement KA

Pr13-3B 13-3, 13-4, 13-5

Selected stock transactions

Moderate 1 hr Analytic FN-Measurement KA

Pr13-4B 13-3, 13-4, 13-5, 13-6

Entries for selected corporate transactions

Difficult 1 hr Analytic FN-Measurement Exl KA

Pr13-5B 13-3, 13-4, 13-5, 13-7

Entries for selected corporate transactions

Moderate 1 hr Analytic FN-Measurement Exl KA

SA13-1 13-1 Board of directors' actions

Easy 10 min Ethics BB-Industry

SA13-2 13-3 Ethics and professional conduct in business

Easy 10 min Ethics BB-Industry

SA13-3 13-3 Issuing stock Moderate 20 min Analytic FN-Measurement SA13-4 13-4 Dividends Moderate 20 min Analytic FN-Measurement SA13-5 13-1 Profiling a corporation Moderate 30 min Analytic BB-Industry SA13-6 13-1 Interpret stock

exchange listing Analytic BB-Industry

1

EYE OPENERS

1. Each stockholder’s liability for corporation debts is limited to the amount invested in the corporation. A corporation is responsible for its own obligations, and therefore, its creditors may not look beyond the assets of the corporation for satisfaction of their claims.

2. The large investments needed by large businesses are usually obtainable only through the pooling of the resources of many people. The corporation also has the advantages over proprietorships and partnerships of transferable shares of ownership, and thus the continuity of existence, and limited liability of its owners (stockholders).

3. No. Common stock with a higher par is not necessarily a better investment than com- mon stock with a lower par because par is an amount assigned to the shares.

4. The broker is not correct. Corporations are not legally liable to pay dividends until the dividends are declared. If the company that issued the preferred stock has operating losses, it could omit dividends, first, on its common stock and, later, on its preferred stock.

5. Factors influencing the market price of a corporation’s stock include the following: a. Financial condition, earnings record, and

dividend record of the corporation. b. Its potential earning power. c. General business and economic

conditions and prospects. 6. No. Premium on stock is additional paid-in

capital. 7. a. Sufficient retained earnings, sufficient

cash, and formal action by the board of directors.

b. February 6, declaration date; March 9, record date; and April 5, payment date.

8. The company may not have had enough cash on hand to pay a dividend on the com- mon stock, or resources may be needed for plant expansion, replacement of facilities, payment of liabilities, etc.

9. a. No change. b. Total equity is the same.

10. a. Current liability b. Stockholders’ equity

11. a. Unissued stock has never been issued, but treasury stock has been issued as fully paid and has subsequently been reacquired.

b. As a deduction from the total of other stockholders’ equity accounts.

12. a. It has no effect on revenue or expense. b. It reduces stockholders’ equity by

$120,000. 13. a. It has no effect on revenue.

b. It increases stockholders’ equity by $158,000.

14. The primary advantage of the combined income and retained earnings statement is that it emphasizes net income as the connecting link between the income statement and the retained earnings portion of stockholders’ equity.

15. The three classifications of restrictions on retained earnings are legal, contractual, and discretionary. Appropriations are normally reported in the notes to the financial statements.

16. Such prior period adjustments should be reported as an adjustment to the beginning balance of retained earnings.

17. The statement of stockholders’ equity is normally prepared when there are significant changes in stock and other paid-in capital accounts.

18. The primary purpose of a stock split is to bring about a reduction in the market price per share and thus to encourage more in- vestors to buy the company’s shares.

2 PRACTICE EXERCISES

PE 13–1A

Year 1 Year 2 Year 3 Amount distributed $ 40,000 $ 10, 000 $120,000 Preferred dividend (10,000 shares) 15,000 10,000 15,000 Common dividend (25,000 shares) $ 25,000 $ 0 $105,000 Dividends per share:

Preferred stock $1.50 $1.00 $1. 50

Common stock $1.00 None $4. 20

PE 13–1B

Year 1 Year 2 Ye ar 3

Amount distributed $ 20,000 $ 4,000 $ 40,000 Preferred dividend (5,000 shares) 7,500 4,000 7,5 00 Common dividend (10,000 shares) $ 12,500 $ 0 $ 32,500 Dividends per share:

Preferred stock $1.50 $0.80 $1. 50

Common stock $1.25 None $3. 25

PAGE 727

2. 1 PE 13–2A

Aug. 3Cash 5,760,000 Common Stock 4,500,000 Paid-In Capital in Excess of Stated Value 1,260,000

(45,000 shares × $128). Sept. 22Cash 150,000

Preferred Stock 150,000 (2,000 shares × $75).

Nov. 4Cash 240,000 Preferred Stock 225,000 Paid-In Capital in Excess of Par 15,000

(3,000 shares × $80).

PAGE 727

PE 13–2B

July 6Cash 960,000 Common Stock 960,000

(800,000 shares × $1.20). Aug. 30 Cash 500,000

Preferred Stock 500,000 (10,000 shares × $50).

Oct. 14Cash 405,000 Preferred Stock 375,000 Paid-In Capital in Excess of Par 30,000

(7,500 shares × $54).

2. 2 PE 13–3A

July 16Cash Dividends 48,000 Cash Dividends Payable 48,000

Aug. 15No entry required.

Sept. 30Cash Dividends Payable 48,000 Cash 48,000

2. 3 PE 13–3B

Oct. 1Cash Dividends 90,000 Cash Dividends Payable 90,000

Nov. 1No entry required. Dec. 24Cash Dividends Payable 90,000

Cash 90,000

PE 13–4A

Feb. 13Stock Dividends (300,000 × 3% × $63) 567,000 Stock Dividends Distributable (9,000 × $40) 360,000 Paid-In Capital in Excess of Par— Common Stock ($567,000 – $360,000) 207,000

Mar. 14No entry required. Apr. 30Stock Dividends Distributable 360,000

Common Stock 360,000

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PE 13–4B

May 10Stock Dividends (250,000 × 2% × $60) 300,000 Stock Dividends Distributable (5,000 × $50) 250,000 Paid-In Capital in Excess of Par— Common Stock ($300,000 – $250,000) 50,000

June 9No entry required. Aug. 1Stock Dividends Distributable 250,000

Common Stock 250,000

PE 13–5A

Jan. 24Treasury Stock (6,000 × $18) 108,000 Cash 108,000

Mar. 15Cash (4,500 × $21) 94,500 Treasury Stock (4,500 × $18) 81,000 Paid-In Capital from Sale of Treasury Stock [4,500 × ($21 – $18)] 13,500

June 2Cash (1,500 × $17) 25,500 Paid-In Capital from Sale of Treasury Stock [1,500 × ($18 – $17)] 1,500

Treasury Stock (1,500 × $18) 27,000

PE 13–5B

Oct. 2Treasury Stock (12,000 × $6) 72,000 Cash 72,000

Nov. 15Cash (8,400 × $9) 75,600 Treasury Stock (8,400 × $6) 50,400 Paid-In Capital from Sale of Treasury Stock [8,400 × ($9 – $6)] 25,200

Dec. 22Cash (3,600 × $5) 18,000 Paid-In Capital from Sale of Treasury Stock [3,600 × ($6 – $5)] 3,600

Treasury Stock (3,600 × $6) 21,600

PAGE 727

PE 13–6A

Stockholders’ Equity Paid-in capital:

Common stock, $80 par (30,000 shares authorized, 25,000 shares issued) $ 2,000,000

Excess of issue price over par 315,000 $ 2,315,000

From sale of treasury stock 33,000 Total paid-in capital $ 2,348,000

Retained earnings 1,112,000 Total $ 3,460,000

Deduct treasury stock (2,000 shares at cost) 180,000 Total stockholders’ equity $ 3,280,000

PE 13–6B

Stockholders’ Equity Paid-in capital:

Common stock, $75 par (50,000 shares authorized, 45,000 shares issued) $ 3,375,000

Excess of issue price over par 485,000 $ 3,860,000

From sale of treasury stock 18,000 Total paid-in capital $ 3,878,000

Retained earnings 1,452,000 Total $ 5,330,000

Deduct treasury stock (5,000 shares at cost) 420,000 Total stockholders’ equity $ 4,910,000

PE 13–7A

DYNAMIC LEADERS INC. Retained Earnings Statement

For the Year Ended July 31, 2008 Retained earnings, August 1, 2007 $ 988,500 Net income $325,000 Less dividends declared 125,000 Increase in retained earnings 200,000 Retained earnings, July 31, 2008 $ 1,188,500

PAGE 727

PE 13–7B

MAXIMA RETRACTORS INC. Retained Earnings Statement

For the Year Ended October 31, 2008 Retained earnings, November 1, 2007 $ 2,906,000 Net income $553,000 Less dividends declared 300,000 Increase in retained earnings 253,000 Retained earnings, October 31, 2008 $ 3,159,000

3

4

5

PAGE 727

EXERCISES

Ex. 13–1

1st Year 2nd Year 3rd Year 4th Year

a. Total dividend distributed $ 40,000 $ 98,000 $ 120,000 $ 195,000

b. Preferred dividend $ 40,000 $ 50,000 $ 50,000 $ 50,000

Preferred shares outstanding / 50,000 / 50,000 / 50,000 / 50,000 Preferred dividend per share $ 0.80 $ 1.00 $ 1.00 $ 1.00

Dividend for common shares (a. – b.) $ — $ 48,000 $ 70,000 $ 145,000 Common shares outstanding — / 100,000 / 100,000 / 100,000 Common dividend per share — $ 0.48 $ 0.70 $ 1.45

Ex. 13–2

1st Year 2nd Year 3rd Year 4th Year

a. Total dividend distributed $ 6,000 $ 26,000 $ 4,000 $ 60,000

b. Preferred dividend $ 6,000 $ 10,000 $ 4,000 $ 10,000

Preferred shares outstanding / 40,000 / 40,000 / 40,000 / 40,000 Preferred dividend per share $ 0.15 $ 0.25 $ 0.10 $ 0.25

Dividend for common shares (a. – b.) $ — $ 16,000 $ — $ 50,000 Common shares outstanding — / 50,000 — / 50,000 Common dividend per share — $ 0.32 — $ 1.00

PAGE 727

PAGE 727

Ex. 13–3

a. Feb. 4 Cash 1,920,000 Common

Stock 600,000 Paid-In Capital in Excess of Par— Common

Stock 1,320,000

Mar. 31 Cash 1,620,000 Preferred

Stock 1,350,000 Paid-In Capital in Excess of Par— Preferred

Stock 270,000

b. $3,540,000 ($1,920,000 + $1,620,000)

Ex. 13–4

a. July 17 Cash 5,400,000 Common

Stock 750,000 Paid-In Capital in Excess of Stated

Value 4,650,000 Sept. 20 Cash 800,000

Preferred Stock 500,000

Paid-In Capital in Excess of Par— Preferred

Stock 300,000

b. $6,200,000 ($5,400,000 + $800,000)

Ex. 13–5

Nov. 10Land 480,000 Common Stock 120,000 Paid-In Capital in Excess of Par 360,000

PAGE 727

Ex. 13–6

a. Cash 240,000 Common

Stock 240,000

b. Organizational Expenses 6,000 Common

Stock 6,000 Cash 216,000

Common Stock 216,000

c. Land 75,000 Building 240,000

Interest Payable* 2,200

Mortgage Note Payable 200,000

Common Stock 112,800 *An acceptable alternative would be to credit Interest Expense.

Ex. 13–7

Buildings 80,000 Land 100,000

Preferred Stock 160,000 Paid-In Capital in Excess of Par—Preferred Stock 20,000

Cash 450,000 Common Stock 400,000 Paid-In Capital in Excess of Par—Common Stock 50,000

PAGE 727

Ex. 13–8

Feb. 19Cash 1,500,000 Common Stock 1,500,000

27Organizational Expenses 7,500 Common Stock 7,500

Mar. 13Land 80,000 Buildings 350,000 Equipment 45,000

Common Stock 450,000 Paid-In Capital in Excess of Par— Common Stock 25,000

May 6Cash 230,000 Preferred Stock 200,000 Paid-In Capital in Excess of Par— Preferred Stock 30,000

Ex. 13–9

July 2Cash Dividends 275,000 Cash Dividends Payable 275,000

Aug. 1No entry required. Sept. 1Cash Dividends Payable 275,000

Cash 275,000

PAGE 727

Ex. 13–10

a. (1) Stock Dividends 720,000* Stock Dividends

Distributable 600,000

Paid-In Capital in Excess of Par— Common

Stock 120,000 *[($30,000,000/$100) × $120] × 2%

(2) Stock Dividends Distributable 600,000 Common

Stock 600,000

b. (1) $34,500,000 ($30,000,000 + $4,500,000) (2) $50,600,000 (3) $85,100,000 ($34,500,000 + $50,600,000)

c. (1) $35,220,000 ($34,500,000 + $720,000) (2) $49,880,000 ($50,600,000 – $720,000) (3) $85,100,000 ($35,220,000 + $49,880,000)

Ex. 13–11

a. May 2 Treasury Stock 216,000 Cash

216,000 Aug. 14 Cash 190,000

Treasury Stock 180,000

Paid-In Capital from Sale of Treasury

Stock 10,000

Nov. 7 Cash 35,000 Paid-In Capital from Sale of Treasury Stock 1,000

Treasury Stock 36,000

b. $9,000 credit c. Mountain Springs may have purchased the stock to support the market price

of the stock, to provide shares for resale to employees, or for reissuance to employees as a bonus according to stock purchase agreements.

PAGE 727

PAGE 727

Ex. 13–12

a. Sept. 9 Treasury Stock 1,068,000 Cash

1,068,000 Oct. 31 Cash 966,000

Treasury Stock 934,500

Paid-In Capital from Sale of Treasury

Stock 31,500

Dec. 4 Cash 85,500 Treasury

Stock 80,100 Paid-In Capital from Sale of Treasury

Stock 5,400 b. $36,900 ($31,500 + $5,400) credit c. $53,400 (600 × $89) debit d. The balance in the treasury stock account is reported as a deduction from the

total of the paid-in capital and retained earnings.

Ex. 13–13

a. June 12 Treasury Stock 720,000 Cash

720,000

Aug. 10 Cash 450,000 Treasury

Stock 432,000 Paid-In Capital from Sale of Treasury

Stock 18,000 Dec. 20 Cash 282,000

Paid-In Capital from Sale of Treasury Stock 6,000

Treasury Stock 288,000 b. $12,000 credit c. Stockholders’ Equity section

PAGE 727

d. Tacoma Inc. may have purchased the stock to support the market price of the stock, to provide shares for resale to employees, or for reissuance to employees as a bonus according to stock purchase agreements.

PAGE 727

Ex. 13–14

Stockholders’ Equity Paid-in capital:

Preferred 3% stock, $100 par (50,000 shares authorized, 15,000 shares issued) $1,500,000

Excess of issue price over par 180,000 $1,680,000 Common stock, no par, $10 stated

value (500,000 shares author- ized, 67,500 shares issued) $ 675,000

Excess of issue price over par 125,000 800,000 From sale of treasury stock 14,500

Total paid-in capital $2,494,500

Ex. 13–15

Stockholders’ Equity Paid-in capital:

Common stock, $50 par (25,000 shares authorized, 18,000 shares issued) $900,000

Excess of issue price over par 110,000 $1,010,000 From sale of treasury stock 42,000

Total paid-in capital $1,052,000 Retained earnings 3,178,000

Total $4,230,000 Deduct treasury stock

(3,500 shares at cost) 210,000 Total stockholders’ equity $4,020,000

PAGE 727

Ex. 13–16

Stockholders’ Equity Paid-in capital:

Preferred 3% stock, $75 par (20,000 shares authorized, 12,500 shares issued) $937,500

Excess of issue price over par 25,000 $ 962,500 Common stock, $5 par

(400,000 shares authorized 175,000 shares issued) $875,000

Excess of issue price over par 700,000 1,575,000 From sale of treasury stock 16,000

Total paid-in capital $ 2,553,500 Retained earnings 2,338,000

Total $ 4,891,500 Deduct treasury common stock

(22,000 shares at cost) 165,000 Total stockholders’ equity $ 4,726,500

Ex. 13–17

STILLWATER CORPORATION Retained Earnings Statement

For the Year Ended August 31, 2008 Retained earnings, September 1, 2007 $ 1,752,000 Net income $378,000 Less dividends declared 180,000 Increase in retained earnings 198,000 Retained earnings, August 31, 2008 $ 1,950,000

PAGE 727

Ex. 13–18

1. Retained earnings is not part of paid-in capital. 2. The cost of treasury stock should be deducted from the total stockholders’

equity. 3. Dividends payable should be included as part of current liabilities and not as

part of stockholders’ equity. 4. Common stock should be included as part of paid-in capital. 5. The amount of shares of common stock issued of 60,000 times the par value

per share of $50 should be extended as $3,000,000, not $3,900,000. The difference, $900,000, probably represents paid-in capital in excess of par.

6. Organizing costs should be expensed when incurred and not included as a part of stockholders’ equity.

One possible corrected Stockholders’ Equity section of the balance sheet is as follows:

Stockholders’ Equity Paid-in capital:

Preferred 1% stock, $75 par (8,000 shares authorized and issued) $ 600,000

Excess of issue price over par 56,000 $ 656,000

Common stock, $50 par (100,000 shares authorized, 60,000 shares issued) $ 3,000,000

Excess of issue price over par 900,000 3,900,000

Total paid-in capital $ 4,556,000 Retained earnings 1 ,203,000*

$ 5,759,000 Deduct treasury stock (4,000 shares at cost) 320,000 Total stockholders’ equity $ 5,439,000 *$1,278,000 – $75,000. Since the organizing costs should have been expensed, the retained earnings should be $75,000 less.

PAGE 727

Ex. 13–19

FAMILY GREETING CARDS INC. Statement of Stockholders’ Equity

For the Year Ended December 31, 2008 Paid-In

Common Capital in Stock Excess Treasury Retained $3 Par of Par Stock Earnings Total

Balance, Jan. 1, 2008 $600,000 $350,000 — $2,108,000 $3,058,000 Issued 50,000 shares

of common stock 150,000 100,000 250,000 Purchased 6,000

shares as treasury stock $(24,000)

(24,000) Net income 325,000 325,000 Dividends (80,000) (80,000) Balance, Dec. 31, 2008 $750,000 $450,000 $(24,000) $2,353,000 $3,529,000

Ex. 13–20

a. 150,000 shares (50,000 × 3) b. $60 per share ($180/3)

Ex. 13–21

Stockholder s’

Assets Liabilities Equity (1) Declaring a cash dividend 0 + – (2) Paying the cash dividend

declared in (1) – – 0 (3) Authorizing and issuing stock

certificates in a stock split 0 0 0 (4) Declaring a stock dividend 0 0 0 (5) Issuing stock certificates for

PAGE 727

the stock dividend declared in (4) 0 0 0

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