Reference no: EM13488727
In recent years, Sonya Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is summarized below.
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Bus
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Acquired
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Cost
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Salvage
Value
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Useful Life
in Years
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Depreciation
Method
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1
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1/1/10
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$ 102,200
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$ 6,600
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4
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Straight-line
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2
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1/1/10
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194,000
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12,100
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5
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Declining-balance
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3
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1/1/11
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71,018
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8,900
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5
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Units-of-activity
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For the declining-balance method, the company uses the double-declining rate. For the units-ofactivity method, total miles are expected to be 121,800. Actual miles of use in the first 3 years were: 2011, 26,900; 2012, 32,600 ; and 2013, 31,800 .
Calculate depreciation expense per mile under units-of-activity method.
Alexia Corporation was organized on January 1, 2012. It is authorized to issue 10,600 shares of 8%, $101 par value preferred stock, and 493,100 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.
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Jan. 10
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Issued 81,600 shares of common stock for cash at $4 per share.
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Mar. 1
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Issued 4,000 shares of preferred stock for cash at $108 per share.
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Apr. 1
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Issued 22,500 shares of common stock for land. The asking price of the land was $90,500. The fair value of the land was $84,600.
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May 1
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Issued 82,700 shares of common stock for cash at $6.97 per share.
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Aug. 1
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Issued 11,600 shares of common stock to attorneys in payment of their bill of $44,400 for services provided in helping the company organize.
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Sept. 1
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Issued 10,700 shares of common stock for cash at $8 per share.
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Nov. 1
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Issued 2,520 shares of preferred stock for cash at $110 per share.
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(a) Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Brandon Corporation had the following stockholders' equity accounts on January 1, 2012:
Common Stock ($5 par) $512,850, Paid-in Capital in Excess of Par-Common Stock $202,320, and Retained Earnings $105,060. In 2012, the company had the following treasury stock transactions.
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Mar. 1
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Purchased 5,570 shares at $9 per share.
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June 1
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Sold 1,480 shares at $13 per share.
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Sept. 1
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Sold 1,380 shares at $10 per share.
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Dec. 1
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Sold 1,270 shares at $6 per share.
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Brandon Corporation uses the cost method of accounting for treasury stock. In 2012, the company reported net income of $30,840.
Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2012, for net income.
The following stockholders' equity accounts arranged alphabetically are in the ledger of Desiree Corporation at December 31, 2012.
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Common Stock ($7 stated value)
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$2,818,900
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Paid-in Capital from Treasury Stock
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11,000
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Paid-in Capital in Excess of Stated Value-Common Stock
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1,619,900
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Paid-in Capital in Excess of Par-Preferred Stock
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661,100
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Preferred Stock (8%, $50 par, noncumulative)
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790,000
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Retained Earnings
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1,748,400
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Treasury Stock (10,800 common shares)
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140,400
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Prepare a stockholders' equity section at December 31, 2012.
The following account balances relate to the stockholders' equity accounts of Chipo Corp. at year-end.
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2012
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2011
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Common stock, 10,500 and 10,000 shares,
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respectively, for 2012 and 2011
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$161,440
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$136,600
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Preferred stock, 5,000 shares
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104,400
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104,400
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Retained earnings
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304,900
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263,980
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A small stock dividend was declared and issued in 2012. The market value of the shares was $10,920. Cash dividends were $14,380 in both 2012 and 2011. The common stock has no par or stated value.
(a) What was the amount of net income reported by Chipo Corp. in 2012?
(b) Determine the amounts of any cash inflows or outflows related to the common stock and dividend accounts in 2012. Indicate where each of the cash inflows or outflows identified in would be classified on the statement of cash flows.