The balance sheet caption for common stock is the following:
Common stock without par value, 3,400,000 shares authorized,
820,000 shares issued, and 740,000 shares outstanding$2,900,000
Required:
(a)
Calculate the average price at which the shares were issued. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)
Price$
(c)
If a cash dividend of $.14 per share were declared, calculate the total amount of cash that would be paid to stockholders. (Omit the “$” sign in your response.)
Cash$
Xener Inc. Inc., did not pay dividends in 2009 or 2010, even though 42,700 shares of its 8.2%, $70 par value cumulative preferred stock were outstanding during those years. The company has 271,000 shares of $2.5 par value common stock outstanding.
Required:
(a)
Calculate the annual dividend per share obligation on the preferred stock. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)
Annual dividend per share$
(b)
Calculate the amount that would be received by an investor who has owned 210 shares of preferred stock and 600 shares of common stock since 2008 if a $.35 per share dividend on the common stock is paid at the end of 2011. (Round your answer to 2 decimal places.Omit the “$” sign in your response.)
For the following transactions.
a.
Sold 2,690 shares of $9 par value preferred stock at $12.50 per share.
b.
Declared the annual cash dividend of $3.9 per share on common stock. There were 8,600 shares of common stock issued and outstanding throughout the year.
c.
Issued 3,800 shares of $8 par value preferred stock in exchange for a building when the market price of preferred stock was $15 per share.
d.
Purchased 160 shares of preferred stock for the treasury at a price of $13.00 per share.
e.
Sold 110 shares of the preferred stock held in treasury (see d) for $19.5 per share.
f.
Declared and issued a 15% stock dividend on the $1 par value common stock when the market price per share was $43.
3.value:
25.00 points
Required:
(a)
Show the effect (if any) of each of the above transactions on each financial statement category by selecting a plus (+) or minus () sign or NE for no effect and the amount in the appropriate column. Do not show items that affect net income in the retained earnings column. (For the Treasury Stock column related to transactions d and e, enter the effect as it relates to Treasury Stock and not to the right-side of the accounting equation. For example, if the transaction causes an increase in Treasury Stock by $20,000, then enter the effect as +20,000.)
TransactionCashOther
AssetsLiabilitiesPaid-In
CapitalRetained
EarningsTreasury
StockNet
Income
a.
b.
c.
d.
e.
f.
check my workeBook Links (4)references
4.value:
25.00 points
(b)
Prepare the journal entries to record each of the above transactions. (Omit the “$” sign in your response.)
EventsGeneral JournalDebitCredit
a.
b.
c.
d.
e.
f.
Total dividends received
