ACC Final Part 2

Salvia Company recently purchased a truck. The price negotiated with the dealer was $46,500. Salvia also paid sales tax of $3,300 on the purchase, shipping and preparation costs of $4,300, and insurance for the first year of operation of $5,300. At what amount should the truck be recorded on the balance sheet prior to recording depreciation expense?

$54,100 = $46,500 + $3,300 + $4,300. The insurance should be recorded as a prepaid expense.

On November 1, 2019, Davis Company issued $30,000, ten-year, 6% bonds for $29,260. The bonds were dated November 1, 2019, and interest is payable each on May 1 and November 1. Davis uses the straight-line method of amortization. How much is the book value of the bonds after the November 1, 2020 interest payment was recorded using the straight-line method of amortization?

1 0/2

During 2019, Patty's Pizza reported net income of $5,212 million, interest expense of $177 million and income tax expense of $1,872 million. During 2018, Patty's reported net income of $4,568 million, interest expense of $173 million and income tax expense of $1,924 million. The times interest earned ratios for 2019 and 2018, respectively, are closest to:

10/1

A Company retired $270,000 of bonds, which have an unamortized premium of $11,500, by purchasing them on the open market for $287,000. What is the amount of the gain or loss on the retirement of the bonds?

10/10

On July 1, 2019, Garden Works, Inc. issued $300,200 of ten-year, 7% bonds for $304,000. The bonds were dated July 1, 2019, and semi-annual interest will be paid each December 31 and June 30. Garden Works Inc. uses the straight-line method of amortization. What is the amount of the semi-annual interest expense

10/3

On July 1, 2019, Garden Works, Inc. issued $300,200 of ten-year, 7% bonds for $304,000. The bonds were dated July 1, 2019, and semi-annual interest will be paid each December 31 and June 30. Garden Works Inc. uses the straight-line method of amortization. What is the net amount of the bond liability to be reported on the December 31, 2019 balance sheet?

10/4

On July 1, 2019, Garden Works, Inc. issued $300,200 of ten-year, 7% bonds for $304,000. The bonds were dated July 1, 2019, and semi-annual interest will be paid each December 31 and June 30. Garden Works Inc. uses the straight-line method of amortization. What is the net amount of the bond liability to be reported on the December 31, 2019 balance sheet?

10/5

On July 1, 2019, immediately after recording interest payments, Salsa, Inc. retired one fifth of its $519,000 of bonds payable for $99,400. The bonds were originally issued at par value in 2014. Which of the following statements is correct?

10/6

On March 31, 2019, Bundy Company retired $10,480,000 of bonds, which have an unamortized premium of $580,000, by paying bondholders $10,290,000. What is the amount of the gain or loss on the retirement of the bonds?

10/7

A company retired $670,000 of bonds, which have an unamortized discount of $27,000, by repurchasing them for $670,000. What is the amount of the gain or loss on the retirement of the bonds?

10/8

A Company retired $1,000,000 of bonds which have an unamortized discount of $40,000, by paying bondholders $1,030,000. What is the amount of the gain or loss on the retirement of the bonds?

10/9

Wendell Company provided the following pertaining to its accounting year that ended December 31, 2019: Common stock with a $10,000 par value was sold for $51,000 cash Cash dividends totaling $20,100 were declared, of which $15,100 were paid Net income was $71,000 A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $23,100 market value Treasury stock repurchased in a prior year for $9,100 was resold for $7,100 and in the journal entry to record the sale, Additional paid-in capital was debited for the amount of the difference between the repurchase price and the resale price What is the amount of increase in Wendell's total stockholders' equity for the year ended December 31, 2019?

11 - 14

Kirova Company has provided the following information: Number of issued common shares, 970,000 Net income, $1,336,000 Number of authorized common shares, 1,000,000 Weighted average number of outstanding common shares, 835,000 Number of treasury shares, 135,000 What is Kirova's earnings per share (EPS)?

11- 13

Rye Company has provided the following information: Weighted average number of outstanding common shares, 192,000 Net income, $441,600 Number of authorized common shares, 390,000 Number of treasury shares, 23,000 If Rye has issued 215,000 shares, what is Rye's earnings per share (EPS)?

11- 15

A company purchased 3,300 shares of treasury stock for $40,300 cash. The shares were initially issued for $26,300 and had a $11,300 par value. Which of the following statements incorrectly describes the effect of the treasury stock purchase?

11- 16

Dora Company declared and distributed a 25% stock dividend on 23,000 shares of issued and outstanding $5 par value common stock. The market price per share was $12 on the declaration date. Which of the following correctly describes the effect of accounting for the declaration and distribution of the stock dividend?

11- 18

Dora Company declared and distributed a 25% stock dividend on 23,000 shares of issued and outstanding $5 par value common stock. The market price per share was $12 on the declaration date. Which of the following correctly describes the effect of accounting for the declaration and distribution of the stock dividend?

11- 19

The following information is provided for Bold Company for the year 2019: Preferred stock, 5%, $50 par value, 2,400 shares issued and outstanding Common stock, $100 par value, 3,400 shares issued and outstanding Dividends in arrears for three prior years (2016-2018) Total dividends declared and paid in 2019 were $64,000. How much of the 2019 dividend payment was paid to the common stockholders assuming the preferred stock is noncumulative?

11- 20

A company reported the following asset and liability balances at the end of 2018 and 2019: 20182019Assets$154,200$182,800Liabilities$73,500$81,400 If the company paid dividends totaling $6,400, what is the amount of net income for 2019?

11- 21

Wendell Company provided the following pertaining to its accounting year that ended December 31, 2019: Common stock with a $10,000 par value was sold for $48,000 cash Cash dividends totaling $21,200 were declared, of which $16,200 were paid Net income was $68,000 A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $24,200 market value Treasury stock repurchased in a prior year for $10,200 was resold for $8,200 and in the journal entry to record the sale, Additional paid-in capital was debited for the amount of the difference between the repurchase price and the resale price What is the amount of net increase in Wendell's additional paid-in capital account during the year 2019?

11- 22

A company repurchased shares of its common stock for $20,100. The stock was initially issued for $14,750 and had a $6,100 par value. Which of the following statements correctly describes the effects of the repurchase of company's common stock shares?

11- 23

Katie Company had 41,100 shares of $2 par value common stock outstanding prior to a 40% common stock dividend declaration and distribution. The market value of the common stock on the declaration date was $10. Which of the following statements incorrectly describes the effect of recording the common stock dividend?

11- 24

RKJ Company has provided the following information: 100,000 shares of $5 par value common stock are authorized 68,000 shares have been issued 63,000 shares are outstanding The 68,000 shares of issued common stock were issued for $11 per share. Which of the following statements is correct?

11- 25

The following information is provided for Bold Company for the year 2019: Preferred stock, 5%, $50 par value, 1,800 shares issued and outstanding Common stock, $100 par value, 2,800 shares issued and outstanding Dividends in arrears for three prior years (2016-2018) Total dividends declared and paid in 2019 were $58,000. How much of the 2019 dividend payment was paid to the common stockholders assuming the preferred stock is cumulative?

11-17

Rice Company, a retailer, has provided the following information pertaining to its recent year of operation: Net income, $100,000 Accounts receivable increased $9,000 Prepaid insurance decreased $3,000 Depreciation expense was $15,000 Gain on sale of land, $2,000 Wages payable decreased $7,000 Unearned revenue increased $11,000 Using the indirect method, how much was Rice's net cash provided by operating activities?

12- 1

Darwin Company, a manufacturer, has provided the following information pertaining to its recent year of operation: Net income, $193,000 Accounts receivable increased $17,200 Prepaid insurance increased $6,200 Depreciation expense was $21,500 Loss on sale of a building was $21,200 Wages payable increased $13,200 Unearned revenue decreased $17,500 Using the indirect method, how much was Darwin's net cash provided by operating activities?

12- 2

RM Company, a manufacturer, has provided the following information pertaining to its recent year of operation: Net income, $320,000 Accounts payable increased $26,000 Prepaid rent decreased $11,000 Depreciation expense was $37,000 Accounts receivable increased $36,000 Gain on sale of a building was $12,000 Wages payable decreased $23,000 Unearned revenue increased $46,000 Using the indirect method, how much was RM's net cash provided by operating activities

12- 3

GJ Company, a manufacturer, has provided the following information pertaining to its recent year of operation: Net income, $490,000 Accounts payable decreased $41,000 Prepaid assets increased $30,000 Depreciation expense was $52,000 Accounts receivable decreased $40,000 Loss on sale of a depreciable asset was $30,000 Wages payable increased $24,500 Unearned revenue decreased $30,000 Patent amortization expense was $10,500 Using the indirect method, how much was GJ's net cash provided by operating activities?

12- 4

Milliken Company paid $5.40 million to purchase stock in another company, $2.60 million to repurchase treasury shares, $4.50 million to buy short-term investments, sold used equipment for $0.96 million when its book value was $3.00 million, and purchased new equipment for $5.0 million. What was the net cash flow from investing activities?

12/10

During 2019, Eva's Enterprises cash paid for property, plant and equipment was $675 million and cash flow from operating activities was $6,048 million. The average property, plant, and equipment from the comparative balance sheets were $5,854 million. Eva's capital acquisitions ratio for 2019 is closest to

12/11

Flow Company has provided the following information for the year ended December 31, 2019: Cash paid for interest, $17,500 Cash paid for dividends, $7,500 Cash dividends received, $5,500 Cash proceeds from bank loan, $24,000 Cash purchase of treasury stock, $8,500 Cash paid for equipment purchase, $24,500 Cash received from issuance of common stock, $34,500 Cash received from sale of land with a $29,500 book value, $23,000 Acquisition of land costing $48,500 in exchange for preferred stock issuance. Payment of $175,000 note payable by exchanging used machinery with a $74,500 book value and $175,000 fair value How much was Flow's net cash flow from investing activities?

12/12

Flow Company has provided the following information for the year ended December 31, 2019: Cash paid for interest, $15,500 Cash paid for dividends, $7,900 Cash dividends received, $5,900 Cash proceeds from bank loan, $20,000 Cash purchase of treasury stock, $6,500 Cash paid for equipment purchase, $22,500 Cash received from issuance of common stock, $32,500 Cash received from sale of land with a $27,500 book value, $21,400 Acquisition of land costing $46,500 in exchange for preferred stock issuance. Payment of a $195,000 note payable by exchanging used machinery with a $72,500 book value and $195,000 fair value. How much was Flow's net cash flow from financing activities?

12/13

Roberts Company sold equipment for $300,000, purchased a building for $6,750,000, sold short-term investments for $330,000, repaid principal on a note payable for $2,550,000 plus $280,000 of interest, and paid cash dividends of $25,000. What was the net cash flow from investing activities?

12/14

Roberts Company sold equipment for $310,000, purchased a building for $6,800,000, sold short-term investments for $340,000, repaid principal on a note payable for $2,600,000 plus $290,000 of interest, and paid cash dividends of $26,000. What was the net cash flow from financing activities?

12/15

Lab Industries, Inc., issued $63,000 of bonds, paid cash dividends of $9,300, sold long-term investments for $13,300, received $6,300 of dividend revenue, purchased treasury stock for $16,300, and purchased new equipment for $20,300. What is the net cash flow from financing activities?

12/16

A company acquired some land (independently appraised at $12,600) and paid for it by issuing 1,060 shares of its common stock (par $10 per share; no market price was quoted). How should this be reported on the statement of cash flows?

12/17

KAJ Incorporated purchased a machine costing $256,900 by paying $37,300 and signing a $219,600 note payable. How would this transaction be reported within the cash flow from investing activities section of the cash flow statement?

12/18

KAJ Incorporated purchased a machine costing $268,000 by paying $36,800 and signing a $218,600 note payable. How would this transaction be reported within the cash flow from financing activities section of the cash flow statement?

12/19

During 2019, Tommy's Toys reported the following: long-term debt repayments, $503 million; interest paid, $143 million; proceeds from exercise of stock options, $27 million, and issue of common stock in exchange for land costing $10 million. What is the 2019 net cash flow from financing activities?

12/20

A company reported net income of $201,400 during 2019. The company reported depreciation expense of $42,000, patent amortization of $13,500 and a $6,400 loss on the sale of equipment. Using the indirect method, how much is the company's net cash flow from operating activities?

12/5

The following information has been provided to you by RKJ Company: Net income $304,500Decrease in accounts payable$115,800Increase in inventory$ 24,250Increase in accounts receivable$ 25,350Decrease in bonds payable$25,900Loss on sale of a depreciable asset$19,450Depreciation expense$42,250Decrease in income taxes payable$12,900 Using the indirect method, what is the net cash provided by operating activities?

12/6

Reliance Corporation has provided the following information for the year ended December 31, 2019: The equipment account balance increased $210,000. The equipment accumulated depreciation account balance increased $36,000. Equipment costing $52,000 was sold during the year resulting in a $11,500 gain. Depreciation expense recorded on the equipment during the year was $66,000. Which of the following statements is correct with respect to determining cash flow from operating activities?

12/7

Allen Company's 2019 income statement reported total revenues, $920,000 and total expenses (including $47,000 depreciation) of $790,000. The company's accounting records showed the following: accounts receivable—beginning balance, $57,000 and ending balance, $46,300; accounts payable—beginning balance, $29,000 and ending balance, $34,300. Therefore, based only on this information, how much was the 2019 net cash provided by operating activities?

12/8

Canadian Beer reported equipment sold for $266 million cash and new equipment purchased $1,537 million cash. The equipment sold had a net book value of $194 million. Cash flow from investing activities would show:

12/9

Schager Company purchased a computer system on January 1, 2019, at a cash cost of $21,000. The estimated useful life is 20 years, and the estimated residual value is $2,600. The company will use the double declining-balance depreciation method.What is the accumulated depreciation balance as of December 31, 2020?

2019 depreciation expense = $2,100 = $21,000 × 2/20. 2020 depreciation expense = $1,890 = ($21,000 - $2,100) × 2/20. December 31, 2020 accumulated depreciation balance = $3,990 = $2,100 + $1,890.

Schager Company purchased a computer system on January 1, 2019, at a cash cost of $27,000. The estimated useful life is 10 years, and the estimated residual value is $4,000. The company will use the double declining-balance depreciation method.How much is the 2020 depreciation expense?

2019 depreciation expense = $5,400 = $27,000 × 2/10. 2020 depreciation expense = $4,320 = ($27,000 − $5,400) × 2/10.

Irish Corporation issued (sold) 22,000 shares of common stock for $58 per share. The bylaws established a stated value of $10 per share. What is the amount of increase in the common stock account as a result of this transaction?

220,000

Landseeker's Restaurants reported cost of goods sold of $338 million and accounts payable of $68 million for 2020. In 2019, cost of goods sold was $274 million and accounts payable was $56 million. Landseeker's accounts payable turnover ratio in 2020 is closest to: 5.45

Accounts payable turnover = 5.45 = Cost of goods sold ÷ Average accounts payable = $338 million ÷ [($68 million + $56 million) ÷ 2].

On January 1, 2019, Woodstock, Inc. purchased a machine costing $36,750. Woodstock also paid $1,250 for transportation and installation. The expected useful life of the machine is 5 years and the residual value is $5,500.How much is the annual depreciation expense, assuming use of the straight-line depreciation method?

Annual depreciation expense = $6,500 = ($36,750 + $1,250 - $5,500) ÷ 5.

On January 1, 2019, Wasson Company purchased a delivery vehicle costing $52,900. The vehicle has an estimated 8-year life and a $4,100 residual value.What is the vehicle's book value as of December 31, 2020, assuming Wasson uses the straight-line depreciation method?

Annual straight-line depreciation expense = $6,100 = ($52,900 - $4,100) ÷ 8. December 31, 2020 book value = $40,700 = $52,900 - ($6,100 × 2).

On October 1, 2017, Adoll Company acquired 2,800 shares of its $1 par value stock for $36 per share and held these shares in treasury. On March 1, 2019, Adoll resold all the treasury shares for $32 per share. Which of the following entries would be recorded when Adoll Company resells the shares of treasury stock?

Cash (2,800*32) 89,600 Additional Paid in Capital (2,800*(36-32)) 11,200 Treasury Stock (2,800*36) 100,800

Phipps Company borrowed $15,000 cash on October 1, 2019, and signed a nine-month, 8% interest-bearing note payable with interest payable at maturity. Assuming that adjusting entries have not been made during the year, the amount of accrued interest payable to be reported on the December 31, 2019 balance sheet is which of the following? 300

December 31, 2019 interest payable = $300 = Amount borrowed × Interest rate × Number of months borrowed during 2019 relative to a year = $15,000 × 8% × (3 ÷ 12).

Melanie Corp. borrowed $102,000 cash on September 1, 2019, and signed a one-year 6%, interest-bearing note payable. The interest and principal are both due on August 31, 2020. Assume that the appropriate adjusting entry was made on December 31, 2019 and that no adjusting entries have been made during 2020. Which of the following would be the required journal entry to pay the note on August 31, 2020? Interest expense 4,080 Interest payable 2,040 Notes payable 102,000 Cash 108,120

December 31, 2019: Interest expense = $2,040 = Amount borrowed × Interest rate × Number of months borrowed relative to a year = $102,000 × 6% × (4 ÷ 12). August 31, 2020: Interest expense = $4,080 = Amount borrowed × Interest rate × Number of months borrowed relative to a year = $102,000 × 6% × (8 ÷ 12). The credit to cash = $108,120 = the amount borrowed plus the interest for one-year = $102,000 + $6,120.

On January 1, 2019, Wasson Company purchased a delivery vehicle costing $40,000. The vehicle has an estimated 6-year life and a $4,000 residual value.Wasson uses the units-of-production depreciation method and Wasson estimates that the vehicle will be driven 100,000 miles. What is the vehicle's book value as of December 31, 2020, assuming the vehicle was driven 10,000 miles during 2019 and driven 18,000 miles during 2020? (Do not round your intermediate calculations.)

Depreciation expense per mile = $0.36 = ($40,000 - $4,000) ÷ 100,000 miles. December 31, 2020 accumulated depreciation balance = $10,080 = $0.36 × 28,000 total miles used. December 31, 2020 book value = $29,920 = $40,000 - $10,080.

A company has some bottling equipment which cost $7.5 million, has a net book value of $3.8 million, estimated future cash flows of $3.2 million, and a fair value of $2.6 million.How much is the asset impairment loss? $1.20 million.

First, the test for impairment shows that the asset is impaired because the estimated future cash flows are less than net book value. Second, the calculation of impairment loss shows the loss to be $1.20 million = the asset's net book value of $3.80 million less its fair value of $2.60 million.

The Wilson Company has provided the following information: • Net sales, $145,000 • Net operating income, $49,000 • Net income, $29,000 • Average total assets, $129,000 • Average net fixed assets; $89,000 What is Wilson's fixed asset turnover ratio? 1.63

Fixed asset turnover ratio = 1.63 = Net sales ÷ Average net fixed assets = $145,000 ÷ $89,000.

Miranda Company borrowed $121,000 cash on September 1, 2019, and signed a one-year 6%, interest-bearing note payable. Assume no adjusting entries have been made during the year. Which of the following would be the required adjusting entry at the end of the December 31, 2019 accounting period? debit int exp 2420 credit int pay 2420

Interest expense = $2,420 = Amount borrowed × Interest rate × Number of months borrowed relative to a year = $121,000 × 6% × (4 ÷ 12).

On October 1, 2019, Donna Equipment signed a one-year, 10% interest-bearing note payable for $48,000. Assuming that Donna Equipment maintains its books on a calendar year basis, how much interest expense should be reported in the 2020 income statement? 3600

Since the note is for one year, only nine months remain on the note in 2020; therefore, 2020 interest expense = $3,600 = Amount borrowed × Interest rate × Number of months borrowed relative to a year = $48,000 × 10% × (9 ÷ 12).

Purdum Farms borrowed $24 million by signing a five-year note on December 31, 2017. Repayments of the principal are payable annually in installments of $4.8 million each. Purdum Farms makes the first payment on December 31, 2018 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2018, after the first payment is made? $4.8 million in current liabilities and $14.4 million in long-term liabilities.

The $4,800,000 payment due on December 31, 2019 is a current liability and the three later payments in years 2020, 2021, and 2022 are reported as long-term liabilities.

Your goal is to be able to withdraw $10,300 for each of the next nine years beginning one year from today and also to withdraw $53,000 ten years from today. The return on the investment is expected to be 5%. The amount that needs to be invested today is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) $105,748.

The investment = $105,748 = (one annuity payment amount × the present value factor for a 9-period, 5% annuity) + (the single payment amount × the present value of $1 factor for a 10-period, 5% single payment) = ($10,300 × 7.10782) + ($53,000 × 0.61391)).

Your goal is to be able to withdraw $4,800 for each of the next seven years beginning one year from today. The return on the investment is expected to be 12%. The amount that needs to be invested today is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) $21,906.

The investment = $21,906 = payments × the present value factor for a 7-period, 12% annuity = $4,800 × 4.56380.

Short Company purchased land by paying $22,000 cash on the purchase date and agreed to pay $22,000 for each of the next seven years beginning one-year from the purchase date. Short's incremental borrowing rate is 10%. The land reported on the balance sheet is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) $129,105.

The land cost = $129,105 = present value of the seven remaining payments × present value factor for a 10%, 7-period ordinary annuity, plus the initial payment = ($22,000 × 4.86842) + $22,000.

Short Company purchased land by paying $16,000 cash on the purchase date and agreed to pay $16,000 for each of the next six years beginning one-year from the purchase date. Short's incremental borrowing rate is 12%. On the balance sheet as of the purchase date, after the initial $16,000 payment was made, the liability reported is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) $65,783.

The liability = $65,783 = present value of the six remaining payments × present value factor for a 12% ordinary annuity = $16,000 × 4.11141.

A company has some bottling equipment which cost $10.40 million, has a net book value of $5.05 million, estimated future cash flows of $3.89 million, and a fair value of $3.29 million.Which of the following correctly describes the recording of the asset impairment loss? The loss account is debited for $1.76 million and the asset account is credited for $1.76 million.

When an impairment loss is recorded, a loss account is debited and the asset account is credited. First, the test for impairment shows that the asset is impaired because the estimated future cash flows are less than net book value. Second, the calculation of impairment loss shows the loss to be $1.76 million = the asset's net book value of $5.05 million less its fair value of $3.29 million.

Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost is $940,000. The estimated residual value of the building is $64,000 and it has an expected useful life of 25 years.Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year?

Year 1 depreciation expense = $75,200 = $940,000 × 2/25. Book value at the end of year 1 = $864,800 = $940,000 - $75,200. Year 2 depreciation expense = $69,184 = $864,800 × 2/25

Davidson Company has 10,000,000 common shares issued and 530,000 shares of treasury stock. The stock's par value is $2 per share and its current market price is $28 per share. Which of the following is correct when a 5% stock dividend is declared and distributed?

c 11 7q

What is the correct entry for the sale of 2,600 shares of $10 par value preferred stock for $130,000 cash?

ch 11 10

A company reported total stockholders' equity of $538,000 on its balance sheet dated December 31, 2018. During the year ended December 31, 2019, the company reported net income of $61,200, declared and paid a cash dividend of $19,200, declared and distributed a 10% stock dividend with a $16,200 total market value, issued additional common stock for $68,000, and resold treasury stock for $16,200 that it had purchased in 2018 for $13,200. What is total stockholders' equity as of December 31, 2019?

ch 11 11

A company reported total stockholders' equity of $172,000 on its balance sheet dated December 31, 2018. During the year ended December 31, 2019, the company reported net income of $20,200, declared and paid a cash dividend of $4,200, declared and distributed a 10% stock dividend with a $5,200 total market value, and issued additional common stock for $42,000. What is total stockholders' equity as of December 31, 2019?

ch 11 12

During 2019, cash dividends of $52,000 were declared and paid, and common stock was issued for $101,000. What was the amount of net income for 2019?

ch 11 3

Wendell Company provided the following pertaining to its accounting year that ended December 31, 2019: Common stock with a $10,000 par value was sold for $47,000 cash Cash dividends totaling $21,300 were declared, of which $16,300 were paid Net income was $67,000 A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $24,300 market value Treasury stock repurchased in a prior year for $10,300 was resold for $8,300 and in the journal entry to record the sale, Additional paid-in capital was debited for the amount of the difference between the repurchase price and the resale price What is the amount of the increase in Wendell's retained earnings for the year ended December 31, 2019?

ch 11 5

CBA Company reported total stockholders' equity of $77,000 on its balance sheet dated December 31, 2018. During the year ended December 31, 2019, CBA reported net income of $11,800, declared and paid a cash dividend of $3,800, and issued additional common stock for $12,000. What is total stockholders' equity as of December 31, 2019?

ch 11 6

Watson Company has provided the following data about its common stock: Par value is $1 per share 10,000,000 authorized shares 4,363,000 shares are outstanding 4,770,000 shares are issued How many shares of treasury stock are there?

ch 11 8

The following information is provided for Bold Company for the year 2019: Preferred stock, 8%, $50 par value, 1,900 shares issued and outstanding Common stock, $100 par value, 2,900 shares issued and outstanding Dividends in arrears for three prior years (2016-2018) Total dividends declared and paid in 2019 were $59,000. Assuming the preferred stock is cumulative, what amount of the 2019 dividend declaration for dividends in arrears was recorded with a debit to the Dividends payable account on the date of declaration?

ch 11 9

A company declares a 50% large stock dividend when there were 4.6 million common shares outstanding with a $1 par value. The current market price is $23 per common share. Which of the following will be the effect of the stock dividend?

stock dividend = 4.6 * 50% * 1 = 2.3 million Retained Earnings will decrease by 2.3 million and common stock will increase by 2.3 million