# acct 212 chapter 13 homework 1

acct 212   homework 1 chapter 13Exercise 13-2 Accounting for par, stated, and no-par stock issuances
L.O. P1

Aloha
Corporation issues 16,000 shares of its common stock for \$222,000 cash on
February 20.

1.

Assume
the stock has neither par nor stated value. Prepare journal entries to record

2.

Assume
the stock has a \$11 par value. Prepare journal entries to record this event. (Omit the “\$” sign in your response.)

3.

Assume
the stock has an \$5.5 stated value. Prepare journal entries to record this
response.)

Q2

Exercise 13-3 Recording stock issuances L.O. P1
[The following information applies to
the questions displayed below.]

Prepare
journal entries to record the following four separate issuances of stock. (Omit the “\$” sign in your response.)

Section Break

Exercise 13-3 Recording stock issuances L.O. P1

2.
award:
1 out of
1.00 point

Exercise 13-3 Part 1

1.

A corporation issued 5,000 shares of no-par
common stock to its promoters in exchange for their efforts, estimated to
be worth \$37,000. The stock has no stated value.

rev: 09_21_2012

Worksheet

Exercise 13-3 Part 1

3.
award:
1 out of
1.00 point

Exercise 13-3 Part 2

2.

A corporation issued 5,000 shares of no-par
common stock to its promoters in exchange for their efforts, estimated to
be worth \$37,000. The stock has a \$1 per share stated value.

rev: 09_21_2012

Worksheet

Exercise 13-3 Part 2

4.
award:
1 out of
1.00 point

Exercise 13-3 Part 3

3.

A corporation issued 10,000 shares of \$20 par
value common stock for \$240,000 cash.

rev: 09_21_2012

Worksheet

Exercise 13-3 Part 3

5.
award:
1 out of
1.00 point

Exercise 13-3 Part 4

4.

A corporation issued 2,500 shares of \$50 par
value preferred stock for \$162,000 cash.

6.
award:
1 out of
1.00 point

Exercise 13-4 Stock issuance for noncash assets L.O. P1

Soku Company issues 19,000 shares of \$10 par
value common stock in exchange for land and a building. The land is
valued at \$231,000 and the building at \$373,000.

Prepare the journal entry to record issuance
of the stock in exchange for the land and building. (Omit the “\$” sign in your response.)

Worksheet

Difficulty: Easy

Exercise 13-4 Stock issuance for noncash assets L.O. P1

Learning Objective: 13-P1 Record the issuance of corporate stock.

7
.
award:
1.34 out of
2.00 points

Exercise 13-6 Stock dividends and splits L.O. P2

On
June 30, 2011, Quinn Corporationâs common stock is priced at \$25.5 per
share before any stock dividend or split, and the stockholdersâ equity
section of its balance sheet appears as follows.

Common
stockâ\$6 par value, 75,000 shares authorized,
30,000 shares issued and outstanding

\$

180,000

Paid-in
capital in excess of par value, common stock

100,000

Retained
earnings

280,000

Total
stockholdersâ equity

\$

560,000

Assume that the company declares and
immediately distributes a 100% stock dividend. This event is recorded by
capitalizing retained earnings equal to the stockâs par value. Answer these
questions about stockholdersâ equity as it exists after issuing
the new shares.

1a.

What
is the retained earnings balance? (Omit the

1b.

What

1c.

How
many shares are outstanding?

Assume that the company implements a 2-for-1
stock split instead of the stock dividend in part 1. Answer these questions
about stockholdersâ equity as it exists after issuing the
new shares.

2a.

What
is the retained earnings balance? (Omit the

2b.

What

2c.

How
many shares are outstanding?

Worksheet

Difficulty: Medium

Exercise 13-6 Stock dividends and splits L.O. P2

Learning Objective: 13-P2 Record transactions involving cash
dividends, stock dividends, and stock splits.

Exercise 13-7 Stock dividends and per share book values L.O. P2
[The following information applies to
the questions displayed below.]

The
stockholdersâ equity of Whiz.com Company at the beginning of the day on
February 5 follows.

Common
stockâ\$5 par value, 150,000 shares authorized,
83,000 shares issued and outstanding

\$

415,000

Paid-in
capital in excess of par value, common stock

525,000

Retained
earnings

675,000

Total
stockholdersâ equity

\$

1,615,000

On
February 5, the directors declare a 12% stock dividend distributable on
February 28 to the February 15 stockholders of record. The stockâs market
value is \$39 per share on February 5 before the stock dividend. The stockâs
market value is \$35 per share on February 28.

Section Break

Exercise 13-7 Stock dividends and per share book values L.O. P2

8.
award:
1.20 out of
2.00 points

Exercise 13-7 Part 1

1.

Prepare
entries to record both the dividend declaration and its distribution. (Omit the “\$” sign in your response.)

Worksheet

Difficulty: Medium

Exercise 13-7 Part 1

Learning Objective: 13-P2 Record transactions involving cash
dividends, stock dividends, and stock splits.

9.
award:
0.25 out of
1.00 point

Exercise 13-7 Part 2

2.

One
stockholder owned 950 shares on February 5 before the dividend. Compute the
book value per share and total book value of this stockholderâs shares
immediately before and after the stock dividend of February
5. (Do not round intermediate calculations.
Round book value per share to 2 decimal places and other answers to the

Worksheet

Difficulty: Medium

Exercise 13-7 Part 2

Learning Objective: 13-P2 Record transactions involving cash
dividends, stock dividends, and stock splits.

10.
award:
1 out of
1.00 point

Exercise 13-7 Part 3

3.

Compute
the total market value of the investorâs shares in part 2 as of February 5
and February 28.(Omit

Worksheet

Difficulty: Medium

Exercise 13-7 Part 3

Learning Objective: 13-P2 Record transactions involving cash
dividends, stock dividends, and stock splits.

11.
award:
2 out of
2.00 points

Exercise 13-8 Dividends on common and noncumulative preferred stock L.O.
C2

outstanding stock consists of 13,000 shares of noncumulative 7.30%
preferred stock with a \$10 par value and also 32,500 shares of common stock
with a \$1 par value. During its first four years of operation, the
corporation declared and paid the following total cash dividends.

Determine
the amount of dividends paid each year to each of the two classes of
stockholders. (Leave no cells blank – be
certain to enter “0” wherever required. Omit the “\$” sign

Compute
the total dividends paid to each class for the four years combined. (Omit the “\$” sign in your response.)

Worksheet

Difficulty: Medium

Exercise 13-8 Dividends on common and noncumulative preferred stock
L.O. C2

Learning Objective: 13-C2 Explain characteristics of, and distribute
dividends between, common and preferred stock.

2.
award:
1.60 out of
2.00 points

Exercise 13-9 Dividends on common and cumulative preferred stock L.O. C2

outstanding stock consists of 53,000 shares of cumulative 9.50%
preferred stock with a \$10 par value and also 132,500 shares of common stock
with a \$1 par value. During its first four years of operation, the
corporation declared and paid the following total cash dividends.

Determine
the amount of dividends paid each year to each of the two classes of
stockholders. (Leave no cells blank – be
certain to enter “0” wherever required. Omit the “\$” sign

Determine
the total dividends paid to each class for the four years combined. (Omit the “\$” sign in your response.)

13.
award:
1.67 out of
2.00 points

Exercise 13-11 Preparing a statement of retained earnings L.O. C3

The
following information is available for Ballard Company for the year ended
December 31, 2011.

a.

Balance
of retained earnings, December 31, 2010, prior to discovery of error, \$870,000.

b.

Cash
dividends declared and paid during 2011, \$13,000.

c.

It
neglected to record 2009 depreciation expense of \$42,600, which is net of
\$6,400 in income taxes.

d.

The
company earned \$220,000 in 2011 net income.

Prepare a 2011 statement of retained earnings for
Ballard Company. (Amounts to be deducted
should be indicated with a minus sign. Omit the “\$” sign in your
response.)

14.
award:
1 out of
1.00 point

Exercise 13-12 Earnings per share L.O. A1

Guess
Company reports \$1,375,000 of net income for 2011 and declares \$192,500 of
cash dividends on its preferred stock for 2011. At the end of 2011, the
company had 320,000 weighted-average shares of common stock.

1.

What
amount of net income is available to common stockholders for 2011? (Omit the “\$” sign in your response.)

2.

What is
the companyâs basic EPS for 2011? (Round your

15.
award:
1 out of
1.00 point

Exercise 13-13 Earnings per share L.O. A1

Franklin
Company reports \$2,000,000 of net income for 2011 and declares \$280,000 of
cash dividends on its preferred stock for 2011. At the end of 2011, the
company had 290,000 weighted-average shares of common stock.

1.

What
amount of net income is available to common stockholders for 2011? (Omit the “\$” sign in your response.)

2.

What is
the companyâs basic EPS for 2011? (Round your

Worksheet

Difficulty: Medium

Exercise 13-13 Earnings per share L.O. A1

16.
award:
2 out of
2.00 points

Exercise 13-14 Dividend yield computation and interpretation L.O. A3

Compute
the dividend yield for each of these four separate companies. (Round your answers to 1 decimal place. Omit the

Which
companyâs stock would probably not be classified as an
income stock?

Company 4

Worksheet

Difficulty: Medium

Exercise 13-14 Dividend yield computation and interpretation L.O. A3

Learning Objective: 13-A3 Compute dividend yield and explain its use
in analysis.

17.
award:
1.20 out of
2.00 points

Exercise 13-15 Price-earnings ratio computation and interpretation L.O.
A2

Compute
the price-earnings ratio for each of these four separate companies. (Round your answers to 1 decimal place.)

Which
stock might an analyst likely investigate as being potentially undervalued by
the market?

Company 4

Worksheet

8.
award:
1 out of
2.00 points

Exercise 13-16 Book value per share L.O. A4

The
equity section of Webster Corporationâs balance sheet shows the following.

Preferred
stockâ5% cumulative, \$20 par value, \$25 call price,
10,000 shares issued and outstanding

\$

200,000

Common
stockâ\$10 par value, 35,000 shares issued and outstanding

350,000

Retained
earnings

267,500

Total
stockholdersâ equity

\$

817,500

Determine
the book value per share of the preferred and common stock under two separate

1.

No
preferred dividends are in arrears.

2.

Three
years of preferred dividends are in arrears.

19.
award:
2 out of
2.00 points

Exercise 13-17 Accounting for equity under IFRS L.O. C3, P1

Unilever
Group reports the following equity information for the years ended December
31, 2007 and 2008 (euros in millions).

December
31

2008

2007

Share
capital

â¬

499

â¬

499

Share

136

168

Other
reserves

(6,455

)

(3,414

)

Retained
profit

15,826

15,169

Shareholdersâ
equity

â¬

10,006

â¬

12,422

1.

Match
each of the three account titles share capital, share premium, and retained
profit with the usual account title applied under U.S. GAAP.

a.

Share
capital

Common
stock, par value

b.

Share

Paid-in
capital in excess of par value, common stock

c.

Retained
profit

Retained
earnings

2.

Prepare
Unileverâs journal entry, using its account titles, to record the issuance of
capital stock assuming that its entire par value stock was issued on December
31, 2007, for cash. (Enter answers in
millions of euros and not in whole euros. Omit

General journal

Debit

Credit

Cash

667

Share
capital

Share

3.

What
were Unileverâs 2008 dividends assuming that only dividends and income
impacted retained profit for 2008 and that its 2008 income totaled â¬2,676? (Enter answers in millions of euros and not in whole euros. Omit the “â¬” sign in your response.)

Dividends

â¬ 2,019

Worksheet

Difficulty: Medium

Learning Objective: 13-P1 Record the issuance of corporate stock.

Exercise 13-17 Accounting for equity under IFRS L.O. C3, P1

Learning Objective: 13-C3 Explain the items reported in retained
earnings.

20.
award:
1.29 out of
4.00 points

Exercise 13-18 Cash dividends, treasury stock, and statement of retained
earnings L.O. C3, P2, P3

Kroll
Corporation reports the following components of stockholdersâ equity on
December 31, 2011.

Common
stockâ\$27 par value, 52,000 shares authorized,
42,000 shares issued and outstanding

\$

1,134,000

Paid-in
capital in excess of par value, common stock

51,000

Retained
earnings

268,000

Total
stockholdersâ equity

\$

1,453,000

In year 2012, the following transactions affected
its stockholdersâ equity accounts.

Jan.

2

Purchased
3,600 shares of its own stock at \$27 cash per share.

Jan.

7

Directors
declared a \$1 per share cash dividend payable on Feb. 28 to the Feb. 9
stockholders of record.

Feb.

28

Paid
the dividend declared on January 7.

July

9

Sold
400 of its treasury shares at \$32 cash per share.

Aug.

27

Sold
3,200 of its treasury shares at \$25 cash per share.

Sept.

9

Directors
declared a \$1 per share cash dividend payable on October 22 to the September
23 stockholders of record.

Oct.

22

Paid
the dividend declared on September 9.

Dec.

31

Closed
the \$8,000 credit balance (from net income) in the Income Summary account to
Retained Earnings.

Required:

1.

Prepare
journal entries to record each of these transactions for 2012. (Omit the “\$” sign in your response.)

2.

Prepare
a statement of retained earnings for the year ended December 31, 2012. (Amounts to be deducted should be indicated with a minus
sign. Omit the “\$” sign

/

3.

Prepare
the stockholdersâ equity section of the companyâs balance sheet as of

rev: 02_21_2012

Worksheet

Difficulty: Hard

Learning Objective: 13-P2 Record transactions involving cash
dividends, stock dividends, and stock splits.

Exercise 13-18 Cash dividends, treasury stock, and statement of
retained earnings L.O. C3, P2, P3

Learning Objective: 13-C3 Explain the items reported in retained
earnings.

Learning Objective: 13-P3 Record purchases and sales of treasury stock
and the retirement of stock.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.