Reference no: EM131789116

II. Exercises

1. Standward Company's shareholders' equity section balance sheet at December 31, 2016 is shown below. Preferred shares Authorized-100 shares Issued and outstanding-55 shares $2,145. Common shares Authorized-900 shares Issued and outstanding-600 shares $1,010. Retained earnings $450. Total shareholders' equity $3,605.

Required:

1. What is the average price received for each issued preferred share? 2. What is the average price received for each issued common share? NOTE: For this part 2 only round your answer to the nearest 2 decimal places.

2. A company had the following bank reconciliation at June 30, 2016:

Balance per bank statement, 6/30/16           $151,125

Add deposit in transit                          33,475

                                              184,600

Less outstanding checks                         40,950

Balance per books, 6/30/16                    $143,650

Data per bank for the month of July 2016 follow:

Deposits        $189,800

Disbursements   $161,525

All reconciling items at June 30, 2016, cleared the bank in July. Outstanding checks at July 31, 2016, totaled $22,750. There were no deposits in transit at July 31, 2016. What is the cash balance per books at July 31, 2016?

3. Expresso Company had the following information related to common and preferred shares during the year:

Common shares outstanding	1/1	568,750
Common shares repurchased	3/1	17,500
Conversion of preferred shares	7/1	32,500
Common shares repurchased	12/1	29,250

Expresso reported net income of $1,625,000 at December 31. What amount of shares should Expresso use as the denominator in the computation of basic earnings per share?

4. An extract from the trial balance of Armstrong Corp. at June 30, 2016 is reproduced below:

	Account	Amount in unadjusted trial balance	Amount in adjusted trial balance
1	Prepaid insurance	$3,200	$2,600
2	Salaries payable	$1,500	$2,100
3	Interest payable	mce_markernbsp;   0	mce_markernbsp; 1,000
4	Unearned revenue	$5,000	$4,000
5	Accumulated depreciation	$2,200	$2,750
6	Unused office supplies	mce_markernbsp; 450	mce_markernbsp;  125

Required: Prepare in general journal format the entries that were posted, including a plausible description. General ledger account numbers are not necessary.