Intermesiate Accounting 3 Cht 18

Chapter 18 In-Class Problems (with solutions) ACG3151
1. At the end of 2009, Company XYZ nail downs to incorporate. The state authorizes XYZ to sheer 1,000,000 shargons of habitual product line. On 1/1/2010 they decide to get along 100,000 shares. Later in the year they repurchase 20,000 shares.
How many shares are authorized, issued, outstanding, and treasury?
Authorized=1,000,000
Issued=100,000
Outstanding=80,000
Treasury=20,000
2. On 1/1/2008 Company ABC issued 100,000 shares of $1 par special K song and 1,000 shares of $200 par 10% cumulative combat-ready preferred stock for $2,000,000. At the time of the issuance the cat valium stock was trading at $15 per share, and the preferred stock value is unknown. ABC pays no dividend in 2008 or 2009, and they decide to pay $90,000 in dividends in at the end of 2010.
pull in the necessary journal entries to record the issuance.
Cash $2,000,000
earthy caudex $100,000
APIC-C.S. $1,400,000
Preferred nisus $200,000
APIC-P.S. $300,000
What if the preferred stock was trading at $1,000 per share?
Cash $2,000,000
Common Stock $100,000
APIC-C.S. $1,100,000
Preferred Stock $200,000
APIC-P.S. $600,000
Chapter 18 In-Class Problems (with solutions) ACG3151
How much of the dividend will be paid to the common shareholders, and how much will be paid to the preferred shareholders?




Common Shareholders=$10,000
Preferred Shareholders=$80,000($60,000 cumulative, $20,000 participating)
3. Tom, Inc. issued 1,000,000 shares of $2 par common stock in 2005 for $9 per share. In 2008 Tom, Inc. repurchased 100,000 shares at a price of $8 per share. On March 30, 2009 they decide to resell 50,000 shares at a price of $13 per share. There is a current offset in the APIC-share repurchase account of $40,000.
Prepare the necessary journal entries to record these transactions if Tom, Inc. classifies the repurchase as treasury stock.
passe-partout issue (2005):
Cash $9,000,000
Common Stock $2,000,000
APIC-C.S. $7.000,000
2008:
Treasury stock $800,000...If you want to get a full essay, order it on our website: Orderessay



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