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Chapter 13 Homework Part I. S13-6 1. Millions Common stock, December 31, 2002.........…….$ 875 Common stock, December 31, 2001..........…… 873 Increase.

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Presentation on theme: "Chapter 13 Homework Part I. S13-6 1. Millions Common stock, December 31, 2002.........…….$ 875 Common stock, December 31, 2001..........…… 873 Increase."— Presentation transcript:

1 Chapter 13 Homework Part I

2 S13-6 1. Millions Common stock, December 31, 2002.........…….$ 875 Common stock, December 31, 2001..........…… 873 Increase during 2002.......................…………$ 2 Paid-in capital in excess of par, December 31, 2002$3,855 Paid-in capital in excess of par, December 31, 2001……………………………. 3,520 Increase during 2002.........................………. 335 Total increase in paid-in capital during 2002..$337 Coca-Cola must have issued common stock during 2002, as shown by the increase in the Common Stock account. 2.Coca-Cola had a profit during 2002, as indicated by the increase in Retained Earnings.

3 S13-10 Dec15Retained earnings31,000* Dividends payable31,000 To record declaration of dividend Jan 4Dividends payable31,000 Cash31,000 To record payment of dividend *Preferred: $100,000 X.06 = 6,000 Common: $.50 x 50,000 = 25,000 $31,000

4 E13-3 Aug6Cash15,000 Common stock500 Paid in capital in excess of par common10,000 Issued 500 shares of common 12Cash20,000 Preferred stock20,000 Issued 300 shares of preferred

5 E13-3 Aug14Land26,000 Common stock1,000 Paid in capital in excess of par common25,000 Issued stock for land 31Income summary25,000 Retained earnings25,000 Closed income summary

6 E13-3 Stockholders’ Equity Paid-in capital: Preferred stock, $3, no-par, 100,000 shares authorized, 300 shares issued………………..$20,000 Common stock, $1 par, 500,000 shares authorized, 1,500 shares issued…………….1,500 Paid-in capital in excess of par— common………………………………………… 39,500 Total paid-in capital……………………………61,000 Retained earnings………………………………... 25,000 Total stockholders’ equity……………………… $86,000

7 E13-4 (a)Cash50,000 Common stock50,000 Issued common stock (b) Cash50,000 Common stock10,000 Paid in capital in excess of stated value40,000 Issued common stock

8 13-2A Requirement 1 Jan. 3Cash101,000 Common Stock101,000 Issued stock to founders. [(6,300 + 3,800)  $10] 12Patent110,000 Preferred Stock (1,100  $100) 110,000 Issued stock to acquire patent. 22Cash15,000 Common Stock (1,500  $10) 15,000 Issued stock.

9 13-2A Stockholders’ Equity Paid-in capital: Preferred stock, 6%, $100 par, 10,000 shares authorized, 1,100 shares issued $110,000 Common stock, no-par, 250,000 shares authorized, 11,600*shares issued 116,000 Total paid-in capital226,000 Retained earnings 40,000 Total stockholders’ equity$266,000 *6,300 + 3,800 + 1,500 = 11,600 $101,000 + $15,000 = $116,000

10 13-3A Req. 1 5% is the annual dividend rate on the preferred stock. Annual dividend on 1,000 shares = $500 ($10 par .05  1,000 shares) Req. 2 Issue price of common stock during 20X4 = $5 per share ($20,000 + $30,000) / 10,000 shares.

11 13-3A Req. 3 First-year operations were not profitable, as shown by the deficit in Retained Earnings.

12 13-3A a.a. Cash50,000 Preferred Stock (5,000  $10) 50,000 b.b. Cash (1,000  $7) 7,000 Common Stock (1,000  $2) 2,000 Paid-in Capital in Excess of Par—Common5,000 c.c. Income Summary50,000 Retained Earnings50,000

13 13-3 A Req. 5 (Stockholders’ equity at December 31, 20X5) Paid-in capital: Preferred stock, 5%, $10 par, 50,000 shares authorized, 5,000 shares issued$ 50,000 Common stock, $2 par, 100,000 shares authorized, 11,000 shares issued22,000 Paid-in capital in excess of par—common ($30,000 + $5,000) 35,000 Total paid-in capital107,000 Retained earnings ($50,000 – $5,000) 45,000 Total stockholders’ equity$152,000


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