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ACCTG 211H Study Guide - Midterm Guide: Fixed Cost, Treasury Stock, Common Stock

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erinllama201
30 Oct 2014
School
PSU
Department
Accounting
Course
ACCTG 211H
Professor
All

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Document Summary

Common stock = par value x # of issued shares. Cash received= market value x # of shares issued. Apic = cash received common stock value. Preferred dividend = par value x # of shares x rate. Yearly preferred stock dividends = # of shares x par value x rate. Treasury stock shares = issued shares outstanding shares. # of shares = yearly preferred dividend/ (par value x rate) Balance of retained earnings = beginning re dividends + net income. Chapter 9: preparing the statement of cash flows. Net operating cash (indirect) = net income + depreciation expense change in current assets + change in current liabilities. Cash received from customers = sales change in accounts receivable. Ending cash balance= net cash operating + net cash investing + net cash. Gain = cash received from the sale book value. Cash paid for merchandise/vendors = cogs + change in inventory change in a/p.

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Related Questions

(LO 9) Sweet Company’s outstanding stock consists of 1,600 shares of cumulative 6% preferred stock with a $100 par value and 10,600 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

Dividend Declared
year 1 $ 2,600
year 2 $ 6,600
year 3 $ 35,000

The amount of dividends paid to preferred and common shareholders in year 3 is:

Multiple Choice

$19,600 preferred; $15,400 common.

$9,600 preferred; $25,400 common.

$28,800 preferred; $6,200 common.

$35,000 preferred; $0 common.

$0 preferred; $35,000 common.

1).Write the Trial Balance

Journal Entries

Date

General Journal

Debit

Credit

Jan.1

Cash (16,000 Shares x $18)

$288,000

Common Stock (16,000 Shares x Par $5)

$80,000

Paid in Capital in Excess of Par - Common Stock (Bal.Fig.)

$208,000

Jan.1

Cash (7200 Shares x $42)

$302,400

Preferred Stock (7200 Shares x Par $40)

$288,000

Paid in Capital in Excess of Par - Preferred Stock (Bal.Fig.)

$14,400

Jan.31

Prepaid Insurance

$34,080

Cash

$34,080

Feb.1

Equipment

$290,000

Cash

$50,000

Notes Payable

$50,000

Common Stock (9500 Shares x Par $5)

$47,500

Paid in Capital in Excess of Par - Common Stock (Bal.Fig.)

$142,500

May.1

Treasury Stock (1200 Shares x $22)

$26,400

Cash

$26,400

June.1

Retained Earnings (7200*$40*5%)

$14,400

Preferred Stock Dividend Payable

$14,400

June.30

Preferred Stock Dividend Payable

$14,400

Cash

$14,400

July.1

Cash

$1,092,880

Bonds Payable (at face value)

$1,000,000

Premium on Bonds Payable (Bal. figure)

$92,880

July.30

Notes Payable

$50,000

Interest Expense (50,000*5%*180/360)

$1,250

Cash

$51,250

Aug.1

Cash (450 Shares x $26)

$11,700

Treasury Stock (450 Shares x Cost $22)

$9,900

Paid in Capital from Treasury Stock (Bal. figure)

$1,800

Oct.1

Equity Investment - Precision Corporation (30000 Shares x $5.10)

$153,000

Commission Expense

$125

Cash

$153,125

Oct.16

Cash (250 Shares x $20)

$5,000

Retained Earnings (Bal. figure)

$500

Treasury Stock (250 Shares x Cost $22)

$5,500

Nov.1

Cash

$36,000

Notes Payable

$36,000

Dec.15

Retained Earnings

$26,900

Preferred Stock Dividend (7200*$40*5%)

$14,400

Common Stock Dividend (0.50*(16000+9500-1200+450+250)

$12,500

Dec.30

No Entry on record date

Dec.31

Accounts Receivable

$1,475,000

Cash

$500,000

Sales Revenue

$1,975,000

Dec.31

Rent

$170,000

Utilities

$13,200

Salaries

$760,000

Payroll tax expense

$45,600

Advertising

$120,000

Medican Insurance

$32,000

Commissions

$63,000

Legal and accounting

$18,000

Miscellaneous

$8,400

Cash

$1,200,200

Accounts Payable

$30,000

Dec.31

Interest Expense (Bal figure)

$34,840

Premium on Bonds Payable (92,880/18)

$5,160

Cash Interest Paid (Face Value 1000,000*8%*1/2 semi annual)

$40,000

Dec.31

Cash

$3,000

Equity Investment - Precision Corporation (30,000 Shares x $0.10)

$3,000

Dec.31

Equity Investment - Precision Corporation (25,000*30%)

$7,500

Equity Income - Precision Corporation

$7,500