135) During 2010, Temper Pedic Corporation engaged in the following selected transactions:
Jan.1Issued 15,000 common shares at $18 per share.
June 15Reacquired 1,000 shares of common shares sold on Jan. 1 for $19 per share.
Aug.10Sold 600 shares of its repurchased shares purchased on June 15 for $20 per share.
Sept. 30The board of directors declares and distributes a 10% common stock dividend. The current selling price of the common shares is $21 per share.
Nov.30The board of directors declares a cash dividend of $.55 per share payable to shareholders on December 15.
Dec.15Paid the cash dividends declared on November 30.
Record journal entries for the above transactions.
136) The following equity transactions may affect the cash flow statement. For each transaction given, indicate the appropriate section of the cash flow statement where the transaction would appear and whether it would be a cash inflow (+) or a cash outflow (-). If a transaction doesn't appear on a cash flow statement, place an (X) in the "No Effect" column.
a.Issuance of common shares
b.Issuance of preferred shares
c.Repurchase of common shares at above issue price
d.2-for-1 stock split
e.Payment of cash dividends
f.Issuance of repurchased common shares at an amount above cost
Transaction
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Operating Activities
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Investing Activities
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Financing Activities
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No Effect
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a.
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b.
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c.
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d.
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e.
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f.
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137) Scar Corporation obtained a charter from the province of Nova Scotia authorizing 500,000 common shares and 20,000 preferred shares.
Listed below are selected accounts from the general ledger of the Scar Corporation. Assuming all accounts have normal balances, prepare the shareholders' equity section of the balance sheet for the Scar Corporation as of December 31, 2010.
Common shares$ 50,000
Cash 40,000
Preferred shares 100,000
Accounts receivable 35,000
Land50,000
Equipment75,000
Retained earnings45,000