16) JKL Company had the following shareholders’ equity section at December 31, 2011:
Preferred stock, $100 par, 8% cumulative
|
$1,250,000
|
Common stock, $2 par value
|
800,000
|
Paid-in capital in excess of par, common stock
|
3,500,000
|
Retained earnings
|
3,167,000
|
Treasury stock (25,000 shares at cost)
|
(300,000)
|
Total
|
$8,417,000
|
1.
|
How many shares of preferred stock are outstanding?
|
|
2.
|
What is the total amount received from issuing common stock?
|
|
3.
|
How many shares of common stock are issued?
|
|
4.
|
What was the average selling price of a share of common stock?
|
|
5.
|
If $160,000 of dividends were declared and no dividends were in arrears, how much of that amount would go to the preferred shareholders?
|
|
6.
|
If $160,000 of dividends were declared and no dividends were in arrears, how much of that amount would go to the common shareholders?
|
|
7.
|
How many shares of common stock are outstanding?
|
|
8.
|
If $160,000 of dividends were declared and no dividends were in arrears, how much is the dividend per common share?
|
|
17) LMN Company had the following shareholders’ equity section at December 31, 2012:
Preferred stock, $50 par, 6% cumulative
|
$ 500,000
|
Common stock, $2 par value
|
1,000,000
|
Paid-in capital in excess of par, common stock
|
5,500,000
|
Retained earnings
|
2,598,000
|
Treasury stock (5,000 shares at cost)
|
(60,000)
|
Total
|
$9,538,000
|
1.
|
How many shares of preferred stock are outstanding?
|
|
2.
|
What is the total amount received from issuing common stock?
|
|
3.
|
How many shares of common stock are issued?
|
|
4.
|
What was the average selling price of a share of common stock?
|
|
5.
|
If $200,000 of dividends were declared and no dividends were in arrears, how much of that amount would go to the preferred shareholders?
|
|
6.
|
If $200,000 of dividends were declared and no dividends were in arrears, how much of that amount would go to the common shareholders?
|
|
7.
|
How many shares of common stock are outstanding?
|
|
8.
|
If $200,000 of dividends were declared and no dividends were in arrears, how much is the dividend per common share? Round your answer to the nearest cent.
|
|
18) The following information is available for
TWO
years ended December 31,
20111
and
2012:
|
Dec.31,
2012
|
Dec.31,
2011
|
Common stock ($2 par value)
|
$ 22,000
|
$ 20,000
|
Additional paid-in capital
|
90,000
|
80,000
|
Retained earnings
|
106,000
|
100,000
|
Treasury stock
|
(2,600)
|
(600)
|
Total shareholders’ equity
|
$215,400
|
$199,400
|
1. From which financial statement did the above information come?
2. If this company declared dividends of $4,000 in
2012, how much income did it earn that year?
3. What event could have caused Treasury stock to change from $(600) in 2011 to
$(2,600) in 2012?
4. How many shares of common stock are issued at the end of
2011?
5. How many shares of common stock are issued at the end of
2012?
6. What event could have caused the change in the common stock account from 2011 to 2012?
7. What was the average price of the common stock issued during 2012?