ACC 291 WEEK 4 INDIVIDUAL ASSIGNMENT – EXERCISES
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ACC 291 WEEK 4 INDIVIDUAL ASSIGNMENT –
EXERCISES
Complete Problem 11-6A.
E11-15
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Before Action
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After Stock Dividend
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After Stock Split
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|
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Stockholders’ equity
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|||
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Paid-in
capital
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|||
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Common stock
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$600,000
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$630,000
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$600,000
|
|
In excess of par value
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0
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3,000 x ($14-$10)=
12,000
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0
|
|
Total paid-in capital
|
600,000
|
642,000
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600,000
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Retained earnings
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900,000
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$900,000-(3,000 x
$14)
858,000
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900,000
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Total stockholders’
equity
|
1,500,000$
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$1,500,000
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$1,500,000
|
|
Outstanding shares
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60,000
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63,000
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120,000
|
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Book value per share
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$25.00
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$23.81
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$12.50
|
P11-6A
(a) Prepare the journal entries for the:
(1) Issuance of preferred stock for land.
Land 296,000
Preferred Stock 240,000 (2,400 x $100)
Paid-in Capital in Excess of Par Value—Preferred 56,000
Land 296,000
Preferred Stock 240,000 (2,400 x $100)
Paid-in Capital in Excess of Par Value—Preferred 56,000
(2) Issuance of common stock for cash.
Cash 7,700,000 ($2,000,000 + $5,700,000)
Common Stock2,000,000 (400,000 x $5)
Paid-in Capital in Excess of Stated Value—Common 5,700,000
Cash 7,700,000 ($2,000,000 + $5,700,000)
Common Stock2,000,000 (400,000 x $5)
Paid-in Capital in Excess of Stated Value—Common 5,700,000
(3) Purchase of common treasury stock for
cash.
Treasury Stock 33,000 (1,500 x $22)
Cash 33,000
Treasury Stock 33,000 (1,500 x $22)
Cash 33,000
(4) Sale of treasury stock for cash.
Cash 14,000 (500 x $28)
Common Treasury Stock 11,000 (500 x $22)
Paid-in Capital from Treasury Stock 3,000 (500 x $6)
Cash 14,000 (500 x $28)
Common Treasury Stock 11,000 (500 x $22)
Paid-in Capital from Treasury Stock 3,000 (500 x $6)
(b) Prepare the stockholders’ equity section
at December 31, 2011.
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