Assignment:
Problem 1:
The Long Island Ducks has stock outstanding as follows: 12,000 shares of cumulative preferred 2% stock. $150 par and 50,000 shares of $10 par common. During the first four years of operations, the following were distributed as dividends: first year, $27,000; second year, $60,000; third year, $80,000; fourth year $90,000. Determine the amount of dividends allocated to preferred stockholders and to common stockholders for each of the four years.
Problem 2:
The New England Patriots sell deflated footballs, and were organized on March 1 of the current year with an authorization of 25,000 shares of preferred 2% stock, $100 par and 500,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations:
March 1: Issued 220,000 shares of common stock at par for cash.
1: Issued 500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
May 31: Issued 70,000 shares of common stock in exchange for land, buildings and equipment with fair market prices of $150,000, $560,000 and $165,000 respectively.
July 1: Issued 18,000 shares of preferred stock at $110 for cash.
Journalize the transactions.
Problem: 3
The M Bezzlement Company had the following account balances: Common Stock (800,000 shares authorized; 500,000 shares issued), $4 par, $2,000,000; Paid-in capital in excess of par-common stock, $1,000,000; and Retained Earnings, $33,500,000. The board of directors declared a 2% stock dividend when the market price of the stock was $13 a share.
a) Journalize the entries to record (1) the declaration of the dividend, capitalizing an amount equal to market value, and (2) the issuance of the stock certificates.
b) Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders’ equity.
c) Determine the following amounts after the stock dividend was declared : (1) the total paid-in capital, (2) total retained earnings, and (3) total stockholders’ equity.
Problem 4:
Pace’s Pathetic Pasta distributes pasta products that are packaged with alka-seltzer. On July 9 of the current year. Pace reacquired 40,000 shares of its common stock at $44 per share (treasury stock). On September 22, Pace sold 30,000 of the reacquired shares at $50 per share. The remaining 10,000 shares were sold at $43 per share on November 23.
A) Journalize the transactions of July 9, September 22, and November 23.