ACC 557 Week 7 Homework Problems – Strayer

ACC 557 Week 7 Homework Problems – Strayer

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Chapter 11

Exercise 11-7

	Your answer is correct.

Fallow Co. had the following transactions during the current period.

Mar. 2		Issued 5,000 shares of $1 par value common stock to attorneys in payment of a bill for $38,000 for services provided in helping the company to incorporate.
June 12		Issued 60,000 shares of $1 par value common stock for cash of $475,000.
July 11		Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share.
Nov. 28		Purchased 2,000 shares of treasury stock for $18,000.

Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Exercise 11-13

	Your answer is correct.

On January 1, Chevon Corporation had 98,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred.

Apr. 1		Issued 25,000 additional shares of common stock for $17 per share.
June 15		Declared a cash dividend of $1 per share to stockholders of record on June 30.
July 10		Paid the $1 cash dividend.
Dec. 1		Issued 2,000 additional shares of common stock for $19 per share.
15		Declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on December 31.

Prepare the entries, if any, on each of the three dividend dates. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Exercise 11-17

	Your answer is correct.

On January 1, 2014, Richard Corporation had retained earnings of $550,000. During the year, Richard had the following selected transactions.

1.		Declared cash dividends $96,000.
2.		Corrected overstatement of 2013 net income because of depreciation error $40,000.
3.		Earned net income $350,000.
4.		Declared stock dividends $80,000.

Prepare a retained earnings statement for the year. (List items that increase retained earnings first.)

Problem 11-3A

The stockholders’ equity accounts of Terrell Corporation on January 1, 2014, were as follows.

Preferred Stock (9%, $50 par, cumulative, 10,000 shares authorized)		$  400,000
Common Stock ($1 stated value, 2,000,000 shares authorized)		1,000,000
Paid-in Capital in Excess of Par—Preferred Stock		100,000
Paid-in Capital in Excess of Stated Value—Common Stock		1,450,000
Retained Earnings		1,816,000
Treasury Stock (20,000 common shares)		50,000

During 2014, the corporation had the following transactions and events pertaining to its stockholders’ equity.

Feb. 1		Issued 25,000 shares of common stock for $120,000.
Apr. 14		Sold 9,000 shares of treasury stock—common for $46,000.
Sept. 3		Issued 7,000 shares of common stock for a patent valued at $42,000.
Nov. 10		Purchased 1,000 shares of common stock for the treasury at a cost of $6,000.
Dec. 31		Determined that net income for the year was $452,000.

No dividends were declared during the year.

a) Journalize the transactions and the closing entry for net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

b) Enter the beginning balances in the accounts, and post the journal entries to the stockholders’ equity accounts. (Use J5 for the posting reference.) (Post entries in the order of journal entries presented in the previous part.)

c) Prepare a stockholders’ equity section at December 31, 2014.