Reference no: EM133062419
Questions -
Q1. Bonds payable - $120,000 How much is the total shareholders' equity?
Additional paid in capital on common stock - 20,000
Donated capital - 16,000Treasury stock at cost - 8,000
Common stock, par P1 - 200,000Common stock option warrants - 40,000
Investments in marketable securities - 28,000Additional paid in capital from treasury stock - 6,000
Retained earnings - 54,000
Q2. Common share, no par, 5,000 shares issued, issue price $12 per share
Preferred share, par $5, 1,000 shares issued and outstanding; issue price, $15 per share
Unrealized gain, available-for-sale securities, $18,000
Retained earnings, $20,000 (unappropriated)
Preferred share, par $5, subscribed (not yet issued), 400 shares; subscription price $20 per share
Subscriptions receivable on the preferred stock $5,000 to be collected on January 1, 2008
Reserve for bond sinking fund, $15,000
Treasury stock, common stock, 1,000 shares, cost $10 per share
How much is the total stockholders' equity?
Q3. Korina declared a cash dividend of $2 per share and the stockholders' equity accounts had the following information on the date of declaration:
Common stock (par $5) - 20,000
Unrealized loss on investments in available-for-sale securities - 15,000
Retained earnings, deficit - 8,000
Contributed capital in excess of par - 10,000
What must be entry on the declaration date?
a. Dr Retained earnings 8,000 Cr Dividends payable, liquidating 8,000
b. Dr Contributed capital in excess of par 8,000 Cr Dividends payable, liquidating 8,000
c. Dr Common stock 8,000 Cr Dividends payable, liquidating 8,000
d. Dr Common stock 4,000 Contributed capital in excess of par 4,000 Cr Dividends payable, liquidating 8,000
Q4. On January 1, 2007, Peyt Company had issued and outstanding 10,000 shares of $10 par common stock and retained earnings of $1,000,000. During the year, the following stockholders' equity transactions were recorded:
March 1: A stock dividend of 1,000 shares was declared when the market price was $26 per share. The dividend was distributed on April 1, 2007.
July 1: A 40% stock dividend was declared when the market price was $45 per share. The dividend was distributed on July 15, 2007.
Peyt suffered a net loss of $12,000 in 2007, paid no cash dividends, and made no additional issues of stock for cash. How much is the balance in the retained earnings account in Peyt on December 31, 2007?
Q5. Felicia Corporation's stockholders' equity account balances at December 31, 2006, were as follows:
Common stock - $1,500,000
Additional paid in capital - 3,000,000
Retained earnings - 2,000,000
The following 2007 data relate to the stockholders' equity accounts: Field had 400,000 authorized shares of $5 par common stock, of which 300,000 shares were issued and outstanding. On March 5, Felicia acquired 50,000 shares of its common stock for $10 per share to be held as treasury stock. The shares were originally issued at $15 per share, Felicia uses the cost method to account for treasury stock. On July 15, Felicia declared and distributed a property dividend of inventory. The inventory had a $750,000 carrying value and a $600,000 fair market value. On January 2, Felicia granted stock options to employees to purchase 20,000 shares of Felicia's common stock at $20 per share, which was the market price on that date. The options may be exercised within a two year period beginning January 2, 2007. The measurement date is the same as the grant date. On October 1, 2007, employees exercised all 20,000 options when the market value of the stock was $25 per share. Felicia issued new shares to settle the transaction. Felicia's net income for 2007 was $2,500,000. How much is Felicia Corporation's total stockholders' equity on December 31, 2007?