Reference no: EM13292590

1. A company was organized in January 2010 and has 2,000 shares of $100 par value, 10%, nonparticipating preferred stock outstanding and 30,000 shares of $10 par value common stock outstanding. It has declared and paid cash dividends each year as shown below. Calculate the total dividends distributed to each class of stockholder under each of the assumptions given.

2. A company reported the following stockholders' equity on January 1 of the current year:

Prepare journal entries for the following selected transactions related to this company's stock during the current year:

3. A corporation had stockholders' equity on January 1 as follows: Common Stock, $5 par value, 1,000,000 shares authorized, 500,000 shares issued; Paid-in Capital in Excess of Par Value, Common Stock, $1,000,000; Retained Earnings, $3,000,000. Prepare journal entries to record the following transactions:

4. A company issues bonds with a par value of $800,000 on their issue date. The bonds mature in 5 years and pay 6% annual interest in two semiannual payments. On the issue date, the market rate of interest is 8%. Compute the price of the bonds on their issue date.

5. On January 1, a company issues bonds with a par value of $300,000. The bonds mature in 5 years, and pay 8% annual interest, payable each June 30 and December 31. On the issue date, the market rate of interest for the bonds is 10%. Compute the price of the bonds on their issue date.

6. A company issued 10%, 10-year bonds with a par value of $1,000,000 on January 1, at a selling price of $885,295, to yield the buyers a 12% return. The company uses the straight line amortization method. Interest is paid semiannually each June 30 and December 31.Prepare the journal entry of the purchase of the bond,prepare the journal entry of the seminannual interest on June 30 and prepare a table showing unamortized discount and carrying value for the first three years of the bond.

7. On April 1 of the current year, a company paid $150,000 cash to purchase 7%, 10-year bonds with a par value of $150,000; interest is paid semiannually each April 1 and October 1. The company intends to hold these bonds until they mature. Prepare the journal entries to record the bond purchase, the receipt of the first semiannual interest payment on October 1 of the current year, and the accrual of interest for the year-end December 31.

8. Acadia had no investments prior to the current year. It had the following transactions involving available-for-sale and held-to-maturity securities during the year. The stock purchases are considered short-term available-for-sale securities. Prepare journal entries to record the transactions and events associated with the investment purchases.

9.The following information is available for the Ehrens Corporation:

Additional information:

(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
(3) New equipment was purchased for $67,550 cash.
(4) Cash dividends of $33,600 were paid.
(5) Additional shares of stock were issued for cash.

Prepare a complete statement of cash flows for calendar-year 2011 using the indirect method.