Chapter 15: Question 7Q (page 810)
Describe the accounting for the issuance for cash of no-par value common stock at a price in excess of the stated value of the common stock.
The issuance of no-par value stocks is recorded as debiting the cash account and crediting the equity account.
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(Preferred Stock Dividends) Cajun Company has outstanding 2,500 shares of
Instructions
Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in per share amounts using the format shown below
Assumptions | |||||
(a) Preferred, noncumulative And nonparticipating | (b) Preferred, cumulative, and fully participating | ||||
Year | Paid-out | Preferred | Common | Preferred | Common |
2012 | \(13,000 | ||||
2013 | \)26,000 | ||||
2014 | \(57,000 | ||||
2015 | \)76,000 |
Seles Corporation’s charter authorized issuance of 100,000 shares of
Instructions
Record the transactions listed above in journal entry form.
(Preferred Dividends) The outstanding capital stock of Edna Millay Corporation consists of 2,000 shares of
Instructions
Assuming that the company has retained earnings of $90,000, 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.
(Stock Dividend, Cash Dividend, and Treasury Stock) Mask Company has 30,000 shares of
In October 2017, Mask declared and distributed 1,950 shares as a stock dividend from unissued shares when the market price of the common stock was \)21 per share.
On December 20, 2017, Mask declared a $1 per share cash dividend, payable on January 10, 2018, to shareholders of record on December 31, 2017.
Instructions
Wilco Corporation has the following account balances on December 31, 2017.
Share capital—ordinary,
Treasury shares 90,000
Retained earnings 2,340,000
Share premium—ordinary 1,320,000
Instructions
Prepare Wilco’s December 31, 2017, equity section.
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