Reference no: EM133069050
Questions -
Q1. Allan Corporation had 40,000 shares of common stock outstanding in January 2007. The entity distributed a 15% stock dividend in March and a 10% stock dividend in June 2007. After acquiring 5,000 shares of treasury stock in July, the company split its stock 4 for 1 in December 2007. What is the number of shares of common stock outstanding as of December 31, 2007?
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. Maroon Company has the following classes of stock outstanding:
Common stock, par value $100 - $300,000
6% preferred stock, par value $100 - 100,000
Retained earnings of $48,000 is to be distributed as dividends. Dividends have not been paid on preferred stock for the preceding 2 years.
a. How much is the total dividends to be given to preferred stock, if preferred stock is cumulative and fully participating?
b. How much is the total dividends to be given to common stock, if preferred stock is cumulative and fully participating?
c. How much the total dividends to be given to preferred stock, if preferred stock is non-cumulative and fully participating?
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?