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Acct 551 Week 5

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Week 5 Acct 551
15-13 (Stock Split and Stock Dividend)
A
Land 1,500,000 25,000*60 Treasury Stock 1,200,000 25,000*48 Paid in Capital Treasury 300,000
B The appraised value of the land is a good choice but it is based on the market. So to get more of a transaction them trading price of the stock is probably the best fit
E15-15 (Dividend Entries)
A Retained Earnings 117,000 60,000*39*5% Common Stock 30,000 Paid in Capital 87,000 Common Stock Dividend 30,000 Common Stock 30,000
B No entry is needed
C Debt Investment 35,000 Unrealized holding gain or loss-Income 35,000 Retained Earnings 125,000 Property Dividends Payable 125,000 Property Payable 125,000 Debt Investment 125,000 …show more content…

tockholders’ equity 1,119,900
Notes:
200,000+50,000=250,000
100,000+9,000=109,000
72,000+125,000+2,500+2,000=201,500
450,000-81,000-59,600+330,000=639,400
108,000-28,000=80,000

E15-23 (Preferred Stock Dividends) A B Preferred, Noncumulative, and Preferred, cumulative, and fully Nonparticipating participating

Year Paid-Out Preferred Common Preferred Common

2011 12,000 4.80 0 4.80 0
2012 26,000 6 .73 7.20 .53
2013 52,000 6 2.47 13 1.30
2014 76,000 6 4.07 19 1.90
Notes:
12,000/2,500=4.80 15,000/2,500=6 26,000-15,000=11,000/15,000=.73 52,000-15,000=37,000/15,000=2.47 61,000/15,000=4.07
26,000-18,000=8,000/15,000=.53 3,000+15,000=18,000/2,500=7.20
2,500*100*.06=15,000
.07*250,000=17,500
15,000+17,500=32,500/2,500=13
15,000*.06*100=9,000 150,000*.07=10,500
9,000+10,500/15,000=1.30
52,000-15,000-9,000=28,000/400,000=7%
2,500*100*.06=15,000 76,000-15,000-9,000=52,000 52,000/15,000=400,000
52,000/400,000=13% 250,000*.13=32,500 150,000*.13=19,500
15,000+32,500=47,500/2,500=19

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