Homework Answers
| No. | General Journal | Debit | Credit |
| 1 | Investment in montgomery co. stock | 288000 | |
| Cash | 288000 | ||
| (record purchase of stock) | |||
| 2 | Cash | 6750 | |
| Investment in montgomery co. stock | 6750 | ||
| ($40000-(250000*10%))*45% | |||
| (dividends entry) | |||
| 3 | Investment in montgomery co. stock | 31500 | |
| Income from montgomery co. stock | 31500 | ||
| ($95000-(250000*10%))*45% | |||
| (income recognised) |
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Chapter 2, Problem 11E Bookmark Show all steps. ON Investee with Preferred Stock Outstanding Reden Corporation...
Reden Corporation purchased 30 percent of Montgomery Company’s common stock on January 1, 20X9, at underlying...
Reden Corporation purchased 30 percent of Montgomery Company’s
common stock on January 1, 20X9, at underlying book value of
$195,600. Montgomery’s balance sheet contained the following
stockholders’ equity balances:
Preferred Stock $4 par value, 42,000 shares issued and outstanding) Common Stock ($1 par value, 134,000 shares issued and outstanding) Additional Paid-In Capital Retained Earnings Total Stockholders' Equity $ 168,000 134,000 196,000 322,000 $820,000 Montgomery's preferred stock is cumulative and pays a 5 percent annual dividend. Montgomery reported net income of...
Carson Corporation has the following capital stock outstanding at December 31, 2019: 9% Preferred stock, $100...
Carson Corporation has the following capital stock outstanding at December 31, 2019: 9% Preferred stock, $100 par value, cumulative 15,000 shares issued and outstanding $1,500,000 Common stock, no par, $10 stated value, 500,000 shares authorized, 350,000 shares issued and outstanding $3,500,000 The preferred stock was issued at $110 per share. The common stock was issued at $16 per share. Instructions Prepare the paid-in capital section of the balance sheet at December 31, 2019. Carson Corporation Balance Sheet (partial) As of...
Your Corporation has the following number of shares of stock outstanding: Cumulative Preferred stock, 2.5%. $100...
Your Corporation has the following number of shares of stock outstanding: Cumulative Preferred stock, 2.5%. $100 par 8,000 shares Common stock,$10 par 10,000 shares It will distribute $100,000 to the two classes of stockholders this year. Including the current year, the preferred stock is three years in arrears. How much of the dividend will the common stockholders receive? $100,000 $ 20,000 $ 40,000 $ 60,000 Your Corporation is authorized to issue 800,000 shares of $3.00 par value common stock. When...
Preferred stock- $25 par value, 10,eee shares authorized, 6,800 shares issued and outstanding Common stock-$10 par...
Preferred stock- $25 par value, 10,eee shares authorized, 6,800 shares issued and outstanding Common stock-$10 par value, 100,00e shares authorized, 80,0e0 shares issued and outstanding Total paid-in' capital Retained earnings Total stockholders' equity $ 170, eee 800,e00 $ 970,000 550,e00 $1,520,000 The number of issued and outstanding shares of both preferred and common stock have been the same for the last two years Dividends on preferred stock are 8 percent of par value and have been paid each year the...
M & C Corporation charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred...
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Pelletier Corporation has the following stock outstanding: Preferred Stock (6 percent, $10 par, 45,000 shares authorized,10,000...
Pelletier Corporation has the following stock outstanding: Preferred Stock (6 percent, $10 par, 45,000 shares authorized,10,000 shares issued and outstanding) Common Stock ($7 par, 250,000 shares authorized, 120,000 shares issued and outstanding) $100,000 840,000 Given this information, if Pelletier pays a $9,000 cash dividend, and if the preferred stock is noncumulative, common stockholders will receive $9,000 b. $3,000 $6,000 d. $4,500 a C.
Splish Corporation has outstanding 52,000 shares of $50 par value, 5% preferred stock and 369,000 shares...
Splish Corporation has outstanding 52,000 shares of $50 par value, 5% preferred stock and 369,000 shares of $1 par value common stock. The preferred stock was issued in July 2017, and no dividends were declared in 2017 or 2018. In 2019, Splish declares a cash dividend of $485,000. How will the dividend be shared by common and preferred stockholders if the preferred is noncumulative? Preferred Stockholders Common Stockholders How will the dividend be shared by common and preferred stockholders if...
Preferred Stock: 10%, $200 par value; 7,000 shares authorized; 3,200 shares issued and outstanding; Paid-in Capital...
Preferred Stock: 10%, $200 par value; 7,000 shares authorized; 3,200 shares issued and outstanding; Paid-in Capital in Excess of Par Value—Preferred Stock, $9,600. Common Stock: $60 par value; 20,000 shares authorized; 9,500 shares issued and outstanding; Paid-in Capital in Excess of Par Value—Common Stock, $11,400. Retained Earnings: Total, $125,000; appropriated for warehouse construction, $50,000. Using this information, prepare the Stockholders’ Equity section of the corporation’s balance sheet
Carson Corporation has the following capital stock outstanding at December 31, 2019: 9% Preferred stock, $100...
Carson Corporation has the following capital stock outstanding at December 31, 2019: 9% Preferred stock, $100 par value, cumulative 15,000 shares issued and outstanding $ 1,500,000 Common stock, no par, $10 stated value, 500,000 shares authorized, 350,000 shares issued and outstanding $ 3,500,000 The preferred stock was issued at $ 110 per share. The common stock was issued at $ 16 per share. Instructions Prepare the paid-in capital section of the balance sheet at December 31, 2019.
The stockholders' equity accounts of Provance Company at December 31, 20XX are presented below: Preferred Stock,...
The stockholders' equity accounts of Provance Company at December 31, 20XX are presented below: Preferred Stock, 7%, $100 par $ Common Stock, $10 par 200,000 $ 1,000,000 Paid-in-Capital in Excess of Par Value-Preferred Stock $ 75,000 Paid-in-Capital in Excess of Par Value Common Stock 150,000 Paid-in Capital from Sale of Treasury Stock $ 25,000 Stock Dividend Distributable Common Stock $ 127,500 Treasury Stock 2,000 Shares $ 50,000 Retained Earnings $ 745,000 Prepare the stockholders' equity section, in good form, calculating...
Reden Corporation purchased 30 percent of Montgomery Company’s
common stock on January 1, 20X9, at underlying book value of
$195,600. Montgomery’s balance sheet contained the following
stockholders’ equity balances:
Preferred Stock $4 par value, 42,000 shares issued and outstanding) Common Stock ($1 par value, 134,000 shares issued and outstanding) Additional Paid-In Capital Retained Earnings Total Stockholders' Equity $ 168,000 134,000 196,000 322,000 $820,000 Montgomery's preferred stock is cumulative and pays a 5 percent annual dividend. Montgomery reported net income of...
Preferred stock- $25 par value, 10,eee shares authorized, 6,800 shares issued and outstanding Common stock-$10 par value, 100,00e shares authorized, 80,0e0 shares issued and outstanding Total paid-in' capital Retained earnings Total stockholders' equity $ 170, eee 800,e00 $ 970,000 550,e00 $1,520,000 The number of issued and outstanding shares of both preferred and common stock have been the same for the last two years Dividends on preferred stock are 8 percent of par value and have been paid each year the...
Pelletier Corporation has the following stock outstanding: Preferred Stock (6 percent, $10 par, 45,000 shares authorized,10,000 shares issued and outstanding) Common Stock ($7 par, 250,000 shares authorized, 120,000 shares issued and outstanding) $100,000 840,000 Given this information, if Pelletier pays a $9,000 cash dividend, and if the preferred stock is noncumulative, common stockholders will receive $9,000 b. $3,000 $6,000 d. $4,500 a C.
Splish Corporation has outstanding 52,000 shares of $50 par value, 5% preferred stock and 369,000 shares of $1 par value common stock. The preferred stock was issued in July 2017, and no dividends were declared in 2017 or 2018. In 2019, Splish declares a cash dividend of $485,000. How will the dividend be shared by common and preferred stockholders if the preferred is noncumulative? Preferred Stockholders Common Stockholders How will the dividend be shared by common and preferred stockholders if...
The stockholders' equity accounts of Provance Company at December 31, 20XX are presented below: Preferred Stock, 7%, $100 par $ Common Stock, $10 par 200,000 $ 1,000,000 Paid-in-Capital in Excess of Par Value-Preferred Stock $ 75,000 Paid-in-Capital in Excess of Par Value Common Stock 150,000 Paid-in Capital from Sale of Treasury Stock $ 25,000 Stock Dividend Distributable Common Stock $ 127,500 Treasury Stock 2,000 Shares $ 50,000 Retained Earnings $ 745,000 Prepare the stockholders' equity section, in good form, calculating...
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