hw chapter 11

Rodriguez Corporation issues 19,000 shares of its common stock for $152,000 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. The stock has a $2 par value. The stock has neither par nor stated value. The stock has a $5 stated value.

A 1 Cash 152,000 Common stock, $2 par value 38,000 Paid-in capital in excess of par value, common stock 114,000 B 2 Cash 152,000 Common stock, no-par value 152,000 C 3 Cash 152,000 Common stock, $5 stated value 95,000 Paid-in capital in excess of stated value, common stock 57,000

1. Prepare the journal entry to record Tamas Company's issuance of 5,000 shares of $100 par value, 7% cumulative preferred stock for $102 cash per share. 2. Assuming the facts in part 1, if Tamas declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders? (Assume no dividends in arrears.)

A 1 Cash 510,000 dr Preferred stock, $100 par value 500,000 cr Paid-in capital in excess of par value, preferred stock 10,000 cr Par Value per Preferred Share $100 Dividend Rate 7.0% Dividend per Preferred Share $7.00 Number of Preferred Shares 5,000 Preferred Dividend $35,000

Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 4,000 shares of $5 par value common stock for $35,000 cash. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has a $1 per share stated value. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has no stated value. A corporation issued 1,000 shares of $50 par value preferred stock for $60,000 cash.

A 1 Cash 35,000 Common stock, $5 par value 20,000 Paid-in capital in excess of par value, Common stock 15,000 B 2 Organization expenses 40,000 Common stock, $1 stated value 2,000 Paid-in capital in excess of stated value, common stock 38,000 C 3 Organization expenses 40,000 Common stock, no-par value 40,000 D 4Cash 60,000 Preferred stock, $50 par value 50,000 Paid-in capital in excess of par value, preferred stock10,000

Identify which of the following statements are true for the corporate form of organization. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) check all that apply Ownership rights cannot be easily transferred. Owners have unlimited liability for corporate debts. Capital is more easily accumulated than with most other forms of organization. Corporate income that is distributed to shareholders is usually taxed twice. It is a separate legal entity. It has a limited life. Owners are not agents of the corporation.

Capital is more easily accumulated than with most other forms of organization. Corporate income that is distributed to shareholders is usually taxed twice. It is a separate legal entity. Owners are not agents of the corporation.

Green Planet Corp. has (a) 5,000 shares of cumulative 10% preferred stock with a $2 par value and (b) 17,000 shares of common stock with a $0.01 par value. During its first two years of operation, Green Planet declared and paid the following total cash dividends. Compute the dividends paid each year to each of the two classes of stockholders: preferred and common. Year 1 total cash dividends $800 Year 2 total cash dividends $1,700

cumulative preferred common year 1 $800 year 2 $1200 $500