Summary ACCT 211 Connect Homework Chapter 11 Exercises Liberty University answers complete solutions (latest 2022/2023)

ACCT 211 Connect Homework Chapter 11 Exercises Liberty University answers complete solutions (latest 2022/2023) 1. Rodriguez Corporation issues 9,000 shares of its common stock for $173,000 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The stock has a $14 par value. 2. The stock has neither par nor stated value. 3. The stock has a $7 stated value. 2. Prepare journal entries to record the following four separate issuances of stock. 1. A corporation issued 5,000 shares of $30 par value common stock for $180,000 cash. 2. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $28,000. The stock has a $1 per share stated value. 3. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $28,000. The stock has no stated value. 4. A corporation issued 1,250 shares of $25 par value preferred stock for $59,250 cash. 3. Sudoku Company issues 29,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $238,000 and the building at $375,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building. 4. On June 30, 2015, Sharper Corporation’s common stock is priced at $29.00 per share before any stock dividend or split, and the stockholders’ equity section of its balance sheet appears as follows. Common stock—$10 par value, 70,000 shares authorized, 28,000 shares issued and outstanding 280,000 Paid-in capital in excess of par value, common stock 100,000 Retained earnings 380,000 Total stockholders’ equity 760,000 4(1) Assume the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock’s par value. Answer these questions about stockholders’ equity as it exists after issuing the new shares. 4(2) Assume that the company implements a 2-for-1 stock split instead of the stock dividend in part 1. Answer these questions about stockholders’ equity as it exists after issuing the new shares. Stock Split Before Stock Split Impact of Stock Split After Stock Split Common stock $280,000 $280,000 Paid in capital in excess of par value 100,000 100,000 Total contributed capital 380,000 380,000 Retained Earnings 380,000 380,000 Total Stockholders' Equity $760,000 $760,000 Number of common shares outstanding 28,000 28,000 56,000 Explanation: 5. York’s outstanding stock consists of 40,000 shares of noncumulative 9.20% preferred stock with a $10 par value and also 100,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends: 2015 29000 2016 35800 2017 2018 Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined. (Round "Dividend Rate (%)" to 1 decimal place and "Dividend per Preferred Share" to 2 decimal places.) Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: $10.00 9.2% 0.92 40,000 $36,800 Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2015 $29,000 $29,000 0 0 2016 35,800 35,800 0 0 2017 110,000 36,800 73,200 2018 196,000 36,800 159,200 Total: $370,800 $138,400 $23 6. York’s outstanding stock consists of 58,000 shares of cumulative 8.00% preferred stock with a $10 par value and also 145,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends. 2015 37000 2016 41150 2017 81400 2018 Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 2 decimal places.) Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: $10.00 8.0% $0.80 58,000 $46,400 Total Cash Dividend Paid Paid to Preferred Paid to Common Dividends in Arrears at year-end 2015 $37,000 $37,000 $9,400 2016 41,150 41,150 14,650 2017 81,400 61,050 20,350 2018 116,400 46,400 70,000 Total $275,950 $185,600 $90,350 Explanation 7. On October 10, the stockholders’ equity of Sherman Systems appears as follows: Common stock–$10 par value, 96,000 shares authorized, issued, and outstanding 960,000 Paid-in capital in excess of par value, common stock 336,000 Retained earnings 1,056,000 Total stockholders’ equity 2,352,000 7(1) Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 7,400 shares of its own common stock at $49 per share on October 11. b. Sold 1,600 treasury shares on November 1 for $55 cash per share. c. Sold all remaining treasury shares on November 25 for $44 cash per share. Transaction General Journal Debit Credit a. Treasury stock 362,600 Cash 362,600 b. Cash 88,000 Treasury stocAk 78,400 Paid-in capital, treasury stock 9,600 c. Cash 255,200 Paid-in capital, treasury stock 9,600 Retained earnings 19,400 Treasury stock 284,200 7(2)Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase. Revised Equity Section of Balance Sheet After October 11 i Common stock, $10 par $960,000 ii Paid-in capital in excess of par value, common stock 336,000 iii Total contributed capital 1,296,000 iv Retained earnings 1,056,000 v Total 2,352,000 Less: cost of treasury stock (362,600) Total stockholders’ equity $1,989,400 8. The following information is available for Amos Company for the year ended December 31, 2015. a. Balance of retained earnings, December 31, 2014, prior to discovery of error, $855,000. b. Cash dividends declared and paid during 2015, $29,000. c. It neglected to record 2013 depreciation expense of $37,600, which is net of $7,300 in tax benefits. d. The company earned $216,000 in 2015 net income. Prepare a 2015 statement of retained earnings for Amos Company. (Amounts to be deducted should be indicated with a minus sign.)