Question

wing units of an inventory item were available for sale during the year: Beginning inventory First purchase Second purchase Third purchase 5 units at S20 20 units at $25 15 units at $30 10 units at 535 a. Under a periodic system, if 20 units were sold, what is the value of the ending inventory assuming FIFO? b. Assuming LIFO? Sarah Inc. has 5,000 shares of3%, S100 par value, cumulative preferred stock and 10,000 shares of S1 par value common stock outstanding at December 31, 2017. 5. a. What is the annual dividend on the preferred stock? b. If the company declares a $20,000 dividends, what would be the total dividend and divide per share for preferred stock and the total dividend and dividend per share for common st If the company reports net income of $80,000, what is the earning-per-share on common stock? c. 6. Common Stock Paid-In Capital in Excess of Par Retained Earnings Treasury Stock $125,000 25,000 80,000 15,000 a. What is the total stockholders' equity based on the following account balances? 7. Common Stock Paid-In Capital in Excess of Par Retained Earnings Treasury Stock S205,000 50,000 (45,000 15,000 a. What is the total stockholders' equity based on the following account balances? 8. A corporation has 20,000 shares of S15 par value stock outstanding that has a cur market value of $120. If the corporation issues a 3-for-1 stock split, the number of shares outstanding wi If the corporation issues a 3-for-1 stock split, the market value will be: If the corporation issues a 3-for-1 stock split,the par value will be: a. b. c.

Answer 1

note: since multiple questions are posted the first appearing question is answered mandatorily and 3 more questions as extra, please post one question at a time.

4. value of ending inventory using periodic FIFO:

beginning inventory + purchases (5+20+15+10)	50 units
less:units sold	(20 units)
units in inventory	30 units

now as per FIFO:

10 units of third purchase + 15 units of second purchase + 5 units of first purchase will be in stock =>30 units.

value

=> (10*$35) +(15*$30) + (5*$25)

=>$350 + 450+125

=>$925.

b.Assuming LIFO:

units in inventory = 30 (as shown above)

as per LIFO:

5 units of beginning inventory +20 units of first purchase +5 units of second purchase = 30 units

value :

(5*$20) + (20*$25) +(5*$30)

=>$750

5th question:

a.annual dividend on preferred stock = value of preferred shares *dividend percentage

=>(5,000*$100) * 3%

=>$15,000.

b.if $20,000 dividends are declared:

total dividends to preferred stock (as shown above)	$15,000
total dividends to common stock holders (total dividends - preferred dividends) (20,000-15,000)	5,000
dividend per share of common stock ($5,000 / 10,000 shares)	$0.50

c.earning per share on common stock = (net income - preferred dividends) / number of shares

=> ($80,000 - 15,000) / 10,000 shares

=>$6.50.

6th question:

common stock	125,000
paid in capital in excess of par	25,000
retained earnings	80,000
less: treasury stock	(15,000)
total stockholder's equity	$215,000

7th question:

common stock	205,000
paid in capital in excess of par	50,000
retained earning	(45,000)
less:treasury stock	(15,000)
total stockholder's equity	195,000