homework help 30634

The stockholders’ equity of Tyron Company at the beginning of the day on February 5 follows: Common stock—$5 par value, 150,000 shares authorized, 71,000 shares issued and outstanding $ 355,000Paid-in capital in excess of par value, common stock 525,000 Retained earnings 675,000 Total stockholders’ equity $ 1,555,000 ________________________________________On February 5, the directors declare a 12% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $56 per share on February 5 before the stock dividend. The stock’s market value is $50 per share on February 28. Requirement 1: Prepare entries to record both the dividend declaration and its distribution. (Omit the “$” sign in your response.)Date General Journal Debit Credit Feb. 5 __________ ____________ __________ ____________ __________ ____________ Feb. 28 __________ ____________ __________ ____________ ________________________________________Requirement 2: One stockholder owned 350 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholder’s shares immediately before and after the stock dividend of February 5. (Round “Book value per share” to 2 decimal places and the other answers to the nearest dollar amount. Omit the “$” sign in your response.) Before After Book value per share $____________$____________Total book value of shares $____________$____________________________________________________Requirement 3: Compute the total market value of the investor’s shares in requirement 2 as of February 5 and February 28. (Round your answers to the nearest dollar amount. Omit the “$” sign in your response.) February 5 February 28 Total market value of shares owned $____________$____________________________________________________________________________________________ Question 2On June 30, 2009, Samson Corporation’s common stock is priced at $30.50 per share before any stock dividend or split, and the stockholders’ equity section of its balance sheet appears as follows.Common stock—$8 par value, 80,000 shares authorized, 32,000 shares issued and outstanding $256,000 Paid-in capital in excess of par value, common stock 100,000 Retained earnings 356,000 Total stockholders’ equity $712,000 ________________________________________Requirement 1:Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock’s par value. Answer these questions about stockholders’ equity as it exists after issuing the new shares. (Omit the “$” sign in your response.)a.What is the retained earnings balance? Retained earnings after dividend$____________b.What is the amount of total stockholders’ equity? Total stockholder’s equity$____________c.How many shares are outstanding? Outstanding shares after the dividend ____________Requirement 2:Assume that the company implements a 2-for-1 stock split instead of the stock dividend in requirement 1. Answer these questions about stockholders’ equity as it exists after issuing the new shares. (Omit the “$” sign in your response.)a.What is the retained earnings balance? Retained earnings after the stock split$____________b.What is the amount of total stockholders’ equity? Total stockholder’s equity$____________c.How many shares are outstanding? Outstanding shares after the stock split ____________________________________________________ Question 3The equity section of Westchester Corporation’s balance sheet shows the following. Preferred stock—6% cumulative, $20 par value, $25 call price,10,000 shares issued and outstanding $ 200,000 Common stock—$10 par value, 45,000 shares issued and outstanding 450,000 Retained earnings 267,500 Total stockholders’ equity $ 917,500 ________________________________________Determine the book value per share of the preferred and common stock under two separate situations. (Round your answers to 2 decimal places. Omit the “$” sign in your response) Requirement 1: No preferred dividends are in arrears. Book value of preferred stock $ ____________ Book value of common stock $ ____________ Requirement 2: Three years of preferred dividends are in arrears. Book value of preferred stock $ ____________ Book value of common stock $ ____________ ________________________________________ Question 4Rocklin Corporation reports the following components of stockholders’ equity on December 31, 2009.Common stock—$15 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $600,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 400,000 Total stockholders’ equity $1,060,000 ________________________________________In year 2010, the following transactions affected its stockholders’ equity accounts:Jan. 1 Purchased 5,500 shares of its own stock at $25 cash per share.Jan. 5 Directors declared a $4 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record.Feb. 28 Paid the dividend declared on January 5.July 6 Sold 2,063 of its treasury shares at $29 cash per share.Aug. 22 Sold 3,437 of its treasury shares at $22 cash per share.Sept. 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.Oct. 28 Paid the dividend declared on September 5.Dec. 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.Requirement 1:Prepare journal entries to record these transactions for 2010. (Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)DateGeneral JournalDebitCreditJan. 1______________________ __________ ____________Jan. 5______________________ __________ ____________Feb. 28______________________ __________ ____________July 6______________________ __________ ____________ __________ ____________Aug. 22______________________ ______________________ ______________________ __________ ____________Sept. 5______________________ __________ ____________Oct. 28______________________ __________ ____________Dec. 31______________________ __________ ____________________________________________________Requirement 2:Prepare a statement of retained earnings for the year ended December 31, 2010. (Round your answers to the nearest dollar amount. Input all amounts as positive values. Omit the “$” sign in your response.)ROCKLIN CORPORATIONStatement of Retained EarningsFor Year Ended December 31, 2010__________$____________ __________ :__________ ____________ ____________ __________ :__________ ____________ __________ ____________ __________$____________ ________________________________________Requirement 3:Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2010. (Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)ROCKLIN CORPORATIONStockholders’ Equity Section of the Balance SheetDecember 31, 2010Common stock—$15 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $____________Paid-in capital in excess of par value, common stock ____________Retained earnings ____________Total stockholders’ equity$____________________________________________________________________________________________ Question 5At September 30, the end of Chan Company’s third quarter, the following stockholders’ equity accounts are reported.Common stock, $12 par value $480,000Paid-in capital in excess of par value, common stock 120,000Retained earnings 400,000________________________________________In the fourth quarter, the following entries related to its equity are recorded.DateGeneral JournalDebitCreditOct. 2Retained Earnings 40,000 Common Dividend Payable 40,000 Oct. 25Common Dividend Payable 40,000 Cash 40,000 Oct. 31Retained Earnings 75,000 Common Stock Dividend Distributable 36,000 Paid-in Capital in Excess of Par Value, Common Stock 39,000 Nov. 5Common Stock Dividend Distributable 36,000 Common Stock, $10 Par Value 36,000 Dec. 1Memo—Change the title of the common stock account to reflect the new par value of $5. Dec. 31Income Summary 200,000 Retained Earnings 200,000 ________________________________________Required:Complete the following table showing the equity account balances at each indicated date (remember to include the balances from September 30). (Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.) Oct. 2 Oct. 25 Oct. 31 Nov. 5 Dec. 1 Dec. 31Common stock$____________$____________$____________$____________$____________$____________Common stock dividend distributable ____________ ____________ ____________ ____________ ____________ ____________Paid-in capital in excess of par, common stock ____________ ____________ ____________ ____________ ____________ ____________Retained earnings ____________ ____________ ____________ ____________ ____________ ____________Total equity$____________$____________$____________$____________$____________$____________________________________________________________________________________________ Question 6The equity sections from Sierra Group’s 2009 and 2010 year-end balance sheets follow.Stockholders’ Equity (December 31, 2009) Common stock—$6 par value, 100,000 shares authorized, 50,000 shares issued and outstanding $300,000 Paid-in capital in excess of par value, common stock 260,000 Retained earnings 340,000 Total stockholders’ equity $900,000 ________________________________________Stockholders’ Equity (December 31, 2010) Common stock—$6 par value, 100,000 shares authorized, 59,200 shares issued, 4,000 shares in treasury $355,200 Paid-in capital in excess of par value, common stock 296,800 Retained earnings ($30,000 restricted by treasury stock) 420,000 1,072,000 Less cost of treasury stock (30,000) Total stockholders’ equity $1,042,000 ________________________________________The following transactions and events affected its equity accounts during year 2010.Jan.5 Declared a $0.5 per share cash dividend, date of record January 10.Mar.20 Purchased treasury stock for cash.Apr.5 Declared a $0.5 per share cash dividend, date of record April 10.July5 Declared a $0.5 per share cash dividend, date of record July 10.July31 Declared a 20% stock dividend when the stock’s market value is $10 per share.Aug.14 Issued stock dividend that was declared on July 31.Oct.5 Declared a $0.5 per share cash dividend, date of record October 10.Requirement 1:How many common shares are outstanding on each cash dividend date? Jan. 5Apr. 5July 5Oct. 5Outstanding Common Shares________________________________________________________________________________________Requirement 2:What is the total dollar amount for each of the four cash dividends? (Omit the “$” sign in your response.) Jan. 5Apr. 5July 5Oct. 5Cash Dividend Amounts$____________$____________$____________$____________________________________________________Requirement 3:What is the amount of the capitalization of retained earnings for the stock dividend? (Omit the “$” sign in your response.)Capitalization of retained earnings for small stock dividend$____________Requirement 4:What is the per share cost of the treasury stock purchased? (Round your answer to 2 decimal places. Omit the “$” sign in your response.)Cost per share of the treasury stock$____________Requirement 5:How much net income did the company earn during year 2010? (Omit the “$” sign in your response.)Net Income$____________