Reference no: EM13914202
Kraft Unlimited, Inc., was organized and authorized to issue 5,000 shares of $100 par value, 9 percent preferred stock and 50,000 shares of no par, $5 stated value com- mon stock on July 1, 2014. Stock-related transactions for Kraft Unlimited follow.
July 1 Issued 10,000 shares of common stock at $11 per share.
1 Issued 500 shares of common stock at $11 per share for services rendered in connection with the organization of the company.
2 Issued 1,000 shares of preferred stock at par value for cash.
10 Issued 2,500 shares of common stock for land on which the asking price was $35,000. Market value of the stock was $12. Management wishes to record the land at the market value of the stock.
Aug. 2 Purchased 1,500 shares of its common stock at $13 per share.
10 Declared a cash dividend for one month on the outstanding preferred stock and $0.02 per share on common stock outstanding, payable on August 22 to stockholders of record on August 12.
12 Date of record for cash dividends.
22 Paid cash dividends.
Required:
1. Prepare journal entries to record these transactions.
2. Prepare the stockholders' equity section of Kraft's balance sheet as it would appear on August 31, 2014. Net income for July was zero and August was $11,500.
3. Business application- Calculate dividend yield, price/earnings ratio, and return on equity. Assume earnings per common share are $1.00 and market price per common share is $20. For beginning stockholders' equity, use the balance after the July transactions. (Round to the nearest tenth of a percent.)
4. Business application- Discuss the results in requirement 3, including the effect on investors' returns and the company's profitability as it relates to stockholders' equity.
|
Merchandising transactions of blink company
: Prepare journal entries to record the above merchandising transactions of Blink Company, which applies the perpetual inventory system.
|
|
Calculate the new breakeven point
: An increase in the bookstore price of $30 to $40 while keeping the bookstore margin at 30%. Calculate the new breakeven point.Which option would you recommend that Right Publishers agree to? Why?
|
|
Defendants constitutional rights violated
: Four separate cases involving similar fact situations were consolidated as they presented the same constitutional question. In each case, police officers, detectives, or prosecuting attorney's took a defendant into custody and interrogated him in a p..
|
|
The following data were taken from net flix
: The following data were taken from Net flix, Inc.'s 2010 annual report. All dollar amounts are in millions.
|
|
Prepare journal entries to record the given transactions
: Prepare journal entries to record these transactions. Prepare the stockholders' equity section of Kraft's balance sheet as it would appear on August 31, 2014.
|
|
Conferences or workshops
: Discuss at least three items that are common pitfalls when setting up a budget. Discuss how you will plan for opportunities to attend conferences or workshops that are important to your marketability but the expenses are not covered by your employer
|
|
Post all journal entries and ledger account
: Use the t accounts page in your workbook to post all journal entries to the appropriate ledger account and calculate account balances as of September 30th.
|
|
After tax cost of new common stock
: What is the after tax cost of new common stock, assuming constant growth in each of the next 3 years? What would the dividend yield in each of the first three years if the growth rate is 12%?
|
|
Product cost for the month
: What is the unit product cost for the month under variable costing
|