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Student: Katie Hutson Date: 10/30/
Instructor: Stacey Vera Course: SJR State - ACG2021C Financial Accounting - Online Fall 2018
Assignment: Chapter 13 Homework Problems Voyage Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30, 2018 : (^1) (Click the icon to view the partial balance sheet.) Read the requirements.^2
Requirement 1. Identify the different classes of stock that VoyageComfort Specialists has outstanding. Voyage has preferred stock and common stock outstanding. Requirement 2. What is the par value per share of VoyageComfort Specialists' preferred stock? The par value of preferred stock is $ 5 per share. Requirement 3. Make two summary journal entries to record issuance of all the Comfort Specialists' stock for cash. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.)
Voyage
Begin by recording the issuance of the preferred stock. Date Accounts^ Debit^ Credit Cash 1,400, Preferred Stock 1,400,
Next, record the issuance of the common stock. Date Accounts^ Debit^ Credit Cash 4,240, Common Stock—$1 Par Value 1,340, Paid-In Capital in Excess of Par—Common 2,900,
Requirement 4. No preferred dividends are in arrears. Journalize the declaration of a dividend at June 30, , and the payment of the dividend on July 20,. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required. (Record debits first, then credits. Exclude explanations from any journal entries.)
Begin by recording the declaration of a $500,000 dividend at June 30, 2018. Date Accounts^ Debit^ Credit Jun. 30 Cash Dividends^ 500, Dividends Payable—Preferred 98, Dividends Payable—Common 402,
Record the payment of the dividend on July 20, 2018.
1: Data Table
2: Requirements
Date Accounts^ Debit^ Credit
Jul. 20 Dividends Payable—Preferred^ 98, Dividends Payable—Common 402, Cash 500,
Stockholders' Equity Paid-In Capital: Preferred Stock—7%,? Par Value; 625,000 shares authorized, 280,000 shares issued and outstanding $ 1,400, Common Stock—$1 Par Value; 3,000,000 shares authorized, 1,340,000 shares issued and outstanding 1,340, Paid-In Capital in Excess of Par—Common 2,900, Total Paid-In Capital 5,640, Retained Earnings 12,000, Total Stockholders' Equity $ 17,640,
1. Identify the different classes of stock that VoyageComfort Specialists has outstanding. 2. What is the par value per share of VoyageComfort Specialists' preferred stock? 3. Make two summary journal entries to record issuance of all the Comfort Specialists' stock for cash. Explanations are not required.
Voyage
4. No preferred dividends are in arrears. Journalize the declaration of a dividend at June 30, , and the payment of the dividend on July 20,. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required.
3: More Info
4: Requirements
Date Accounts and Explanation Debit Credit Oct. 25 Dividends Payable—Preferred^ 2, Dividends Payable—Common 16, Cash 19,
Paid cash dividend.
Requirement 2. Prepare the stockholders' equity section of 's balance sheet at ,. Assume 's net income for the month was.
D − Mobile October 31 2018 D − Mobile $94,
D-Mobile Wireless Balance Sheet (Partial) October 31, 2018 Stockholders' Equity Paid-In Capital: Preferred Stock—8%, $50 Par Value; 50,000 shares authorized, 600 shares issued and outstanding $ 30, Paid-In Capital in Excess of Par—Preferred 54, Common Stock—$4 Par Value; 160,000 shares authorized, 30,000 shares issued and outstanding 120, Paid-In Capital in Excess of Par—Common 175, Total Paid-In Capital 379, Retained Earnings 75, Total Stockholders' Equity $ 454,
Oct. 2 Issued 19,000 shares of common stock for a building with a market value of $240,000. 6 Issued 600 shares of preferred stock for $140per share. 9 Issued 11,000 shares of common stock for cash of $55,000. 10 Declared a cash dividend for stockholders of record on 20. Use a separate Dividends Payable account for preferred and common stock.
$19,000 Oct. 25 Paid the cash dividend.
1. Record the transactions in the general journal. 2. Prepare the stockholders' equity section of 's balance sheet at ,. Assume 's net income for the month was.
D − Mobile October 31 2018 D − Mobile $94,
- Deerborn Manufacturing Co. completed the following transactions during 2018 : (^5) (Click the icon to view the transactions.) Read the requirements.^6
Requirement 1. Record the transactions in general journal. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.)
Deerborn's
Jan. 16: Declared a cash dividend on the %, $ par noncumulative preferred stock ( shares outstanding). Declared a per share dividend on the shares of $ par value common stock outstanding. The date of record is January 31, and the payment date is February 15.
Date Accounts and Explanation Debit Credit Jan. 16 Cash Dividends^ 26, Dividends Payable—Preferred 6, Dividends Payable—Common 20,
Declared a cash dividend. Feb. 15: Paid the cash dividends. Date Accounts and Explanation Debit Credit Feb. 15 Dividends Payable—Preferred^ 6, Dividends Payable—Common 20, Cash 26,
Paid cash dividend. Jun. 10: Split common stock 2-for-1. Date Accounts and Explanation Debit Credit Jun. 10 No entry required
Jul. 30: Declared a 30% stock dividend on the common stock. The market value of the common stock was $9per share. Date Accounts and Explanation Debit Credit Jul. 30 Stock Dividends^ 60, Common Stock Dividend Distributable 60,
Declared a 30% stock dividend. Aug. 15: Distributed the stock dividend.
5: More Info
6: Requirements
Deerborn Manufacturing, Co. Balance Sheet (Partial) December 31, 2018 Stockholders' Equity Paid-In Capital: Preferred Stock—6%, $103 Par Value; 2,600 shares authorized, 1,050 shares issued and outstanding $ 108, Common Stock—$1 Par Value; 400,000 shares authorized, 260,000 shares issued 259,800 shares outstanding 260, Total Paid-In Capital 368, Retained Earnings 2,060, Treasury Stock—Common; 200 shares at cost (1,600) Total Stockholders' Equity $ 2,426,
Jan. 16 Declared a cash dividend on the %, $ par noncumulative preferred stock ( shares outstanding). Declared a per share dividend on the shares of $ par value common stock outstanding. The date of record is January 31, and the payment date is February 15.
Feb. 15 Paid the cash dividends. Jun. 10 Split common stock 2-for-1. Jul. 30 Declared a stock dividend on the common stock. The market value of the common stock was per share.
Aug. 15 Distributed the stock dividend. Oct. 26 Purchased 1,000 shares of treasury stock at $8per share. Nov. 8 Sold 500 shares of treasury stock for $10per share. 30 Sold 300 shares of treasury stock for $4per share.
1. Record the transactions in Deerborn'sgeneral journal. 2. Prepare the stockholders ' equity section of the balance sheet as of December 31,. Assume that was authorized to issue shares of preferred stock and shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December 31, , is.
Deerborn's 2018 Deerborn 2,600 400, 2018 $2,060,
7: Data Table
The following information was taken from the records of Chua Motorsports, Inc. at November 30 2018, : (^7) (Click the icon to view the data.) Prepare a multi-step income statement for Motorsports for the fiscal year ended ,. Include earnings per share.
Chua November 30 2018
Complete the income statement in this step, and then identify and enter the applicable EPS amounts in the following step. (Round all earnings per share amounts to the nearest cent, $X.XX.) Chua Motorsports, Inc. Income Statement Year Ended November 30, 2018 Net Sales Revenue $ 819, Cost of Goods Sold 510, Gross Profit 309, Operating Expenses: Selling Expenses $ 110, Administrative Expenses 115,000^ 225, Operating Income/Income Before Taxes 84, Income Tax Expense 20, Income From Continuing Operations 64, Discontinued Operations (less applicable tax) 1, Net Income $ 65,
Earnings per Share of Common Stock (5,000 shares outstanding): Income From Continuing Operations $ 3. Income From Discontinued Operations 0. Net Income $ 3.
Selling Expenses $ 110,000 Common Stock, $12 Par Value, Administrative Expenses 115,000 10,000 shares authorized and issued $ 120, Income From Discontinued Operations 2,500 Preferred Stock, $7 No-Par Value, Cost of Goods Sold 510,000 7,000 shares issued 490, Treasury Stock—Common (5, shares) 75,000 Income Tax Expense: Continuing Operations 20, Net Sales Revenue 819,000 Income Tax Expense: Income from Discontinued Operations 1,
8: Data Table
9: More Info
Requirement 2. Prepare a retained earnings statement for the year ended December 31,. Assume 's net income for the year was.
2018 Goldstein $90,
Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal. (Check your spelling carefully and do not abbreviate.)
Goldstein Management Consulting, Inc. Statement of Retained Earnings Year Ended December 31, 2018 Retained Earnings, January 1, 2018 $ 160, Net income for the year 90, 250, Cash dividends declared (3,450) Stock dividends declared (120,000) Retained Earnings, December 31, 2018 $ 126,
Requirement 3. Prepare the stockholders' equity section of the balance sheet at December 31,. (Use parentheses or a minus sign for amounts to be subtracted.)
Goldstein Management Consulting, Inc. Balance Sheet (Partial) December 31, 2018 Stockholders' Equity Paid-In Capital: Common Stock—$10 Par Value; 350,000 shares authorized, 36,800 shares issued, 34,500 shares outstanding $ 368, Paid-In Capital in Excess of Par—Common 402, Total Paid-In Capital 770, Retained Earnings 126, Treasury Stock—Common; 2,300 shares at cost (57,500) Total Stockholders' Equity $ 839,
Stockholders' Equity Paid-In Capital: Common Stock—$10 Par Value; 350,000 shares authorized, 32,000 shares issued and outstanding $ 320, Paid-In Capital in Excess of Par—Common 330, Total Paid-In Capital 650, Retained Earnings 160, Total Stockholders' Equity $ 810,
10: Requirements
Feb. 6 Declared a 15% stock dividend on common stock. The market value of Goldstein's stock was $25per share. 15 Distributed the stock dividend. Jul. 29 Purchased 2,300 shares of treasury stock at $25per share. Nov. 27 Declared a $0.10per share cash dividend on the common stock outstanding.
1. Record the transactions in the general journal. 2. Prepare a retained earnings statement for the year ended December 31,. Assume 's net income for the year was.
2018 Goldstein $90,
3. Prepare the stockholders' equity section of the balance sheet at December 31, 2018.
12: Requirements
1. Compute Company 's earnings per share for. Assume the company paid the minimum preferred dividend during. Round to the nearest cent.
Bianchi 2018 2018
2. Compute Company 's price/earnings ratio for. Assume the company 's market price per share of common stock is. Round to two decimals.
Bianchi 2018 $
3. Compute Company 's rate of return on common stockholders ' equity for. Assume the company paid the minimum preferred dividend during. Round to the nearest whole percent.
Bianchi 2018 2018
13: Data Table
The following information was taken from the records of Arizona Motorsports, Inc. at November 30 2018, : (^13) (Click the icon to view the data.) Prepare a multi-step income statement for Motorsports for the fiscal year ended ,. Include earnings per share.
Arizona November 30 2018
Complete the income statement in this step, and then identify and enter the applicable EPS amounts in the following step. (Round all earnings per share amounts to the nearest cent, $X.XX.) Arizona Motorsports, Inc. Income Statement Year Ended November 30, 2018 Net Sales Revenue $ 801, Cost of Goods Sold 470, Gross Profit 331, Operating Expenses: Selling Expenses $ 95, Administrative Expenses 150,000^ 245, Operating Income/Income Before Taxes 86, Income Tax Expense 50, Income From Continuing Operations 36, Discontinued Operations (less applicable tax) 1, Net Income $ 37,
Earnings per Share of Common Stock (12,000 shares outstanding): Income From Continuing Operations $ 2. Income From Discontinued Operations 0. Net Income $ 2.
Selling Expenses $ 95,000 Common Stock, $11 Par Value, Administrative Expenses 150,000 13,500 shares authorized and issued $ 148, Income From Discontinued Operations 2,400 Preferred Stock, $2 No-Par Value, Cost of Goods Sold 470,000 2,000 shares issued 60, Treasury Stock—Common (1, shares) 19,500 Income Tax Expense: Continuing Operations 50, Net Sales Revenue 801,400 Income Tax Expense: Income from Discontinued Operations 960
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15: More Info
Requirement 2. Prepare a retained earnings statement for the year ended December 31,. Assume 's net income for the year was.
2018 Cullins $87,
Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal. (Check your spelling carefully and do not abbreviate.)
Cullins Management Consulting, Inc. Statement of Retained Earnings Year Ended December 31, 2018 Retained Earnings, January 1, 2018 $ 163, Net income for the year 87, 250, Cash dividends declared (4,220) Stock dividends declared (27,500) Retained Earnings, December 31, 2018 $ 218,
Requirement 3. Prepare the stockholders' equity section of the balance sheet at December 31,. (Use parentheses or a minus sign for amounts to be subtracted.)
Cullins Management Consulting, Inc. Balance Sheet (Partial) December 31, 2018 Stockholders' Equity Paid-In Capital: Common Stock—$10 Par Value; 200,000 shares authorized, 23,100 shares issued, 21,100 shares outstanding $ 231, Paid-In Capital in Excess of Par—Common 376, Total Paid-In Capital 607, Retained Earnings 218, Treasury Stock—Common; 2,000 shares at cost (50,000) Total Stockholders' Equity $ 775,
Stockholders' Equity Paid-In Capital: Common Stock—$10 Par Value; 200,000 shares authorized, 22,000 shares issued and outstanding $ 220, Paid-In Capital in Excess of Par—Common 360, Total Paid-In Capital 580, Retained Earnings 163, Total Stockholders' Equity $ 743,
16: Requirements
Feb. 6 Declared a 5% stock dividend on common stock. The market value of Cullins's stock was $25per share. 15 Distributed the stock dividend. Jul. 29 Purchased 2,000 shares of treasury stock at $25per share. Nov. 27 Declared a $0.20per share cash dividend on the common stock outstanding.
1. Record the transactions in the general journal. 2. Prepare a retained earnings statement for the year ended December 31,. Assume 's net income for the year was.
2018 Cullins $87,
3. Prepare the stockholders' equity section of the balance sheet at December 31, 2018.
Date Accounts and Explanation Debit Credit Dec. 31 Dividends Payable—Preferred^ 2, Dividends Payable—Common 12, Cash 15,
Payment of cash dividend.
Dec. 31: Distributed the stock dividend.
Date Accounts and Explanation Debit Credit Dec. 31 Common Stock Dividend Distributable^ 14, Common Stock—$1 Par Value 14,
Issued 8% stock dividend.
Requirement 2. Calculate the balance in Retained Earnings on December 31,. Assume the balance on January 1, was and net income for the year was.
Complete the table below to calculate the balance in Retained Earnings on December 31, 2021.
Retained Earnings, Jan. 1, 2021 $ 4, Plus: Net income^ 417, Less: Cash dividends declared^ (15,000) Stock dividends declared (66,960) Retained Earnings, Dec. 31, 2021 339,
Requirement 3. Prepare the stockholders' equity section of the balance sheet as of December 31,. There was no preferred stock issued prior to the transactions.
Review the journal entries from Requirement 1.
Canyon Canoe Company Balance Sheet (Partial) December 31, 2021 Paid-In Capital: Preferred Stock—4%, $3 Par Value; 20,000 shares issued and outstanding $ 60, Paid-In Capital in Excess of Par—Preferred 10, Common Stock—$1 Par Value; 200,880 shares issued and outstanding 200, Paid-In Capital in Excess of Par—Common 202, Total Paid-In Capital 472, Retained Earnings 339, Total Stockholders' Equity $ 812,
17: Requirements
1. Journalize the transactions. 2. Calculate the balance in Retained Earnings on December 31,. Assume the balance on January 1, was and net income for the year was.
3. Prepare the stockholders' equity section of the balance sheet as of December 31,. There was no preferred stock issued prior to the transactions.
