Question : 211.Acton Corporation had the following stock outstanding for years 20×5 : 1244186

 

211.Acton Corporation had the following stock outstanding for years 20×5 through 20×8:

 

Preferred Stock—$100 par value, 7 percent cumulative, 10,000 shares authorized, 5,000 shares issued and outstanding

Common Stock—$20 par value, 10,000 shares authorized, 7,000 shares issued and outstanding

 

Acton paid $20,000, $30,000, $100,000, and $15,000 in cash dividends during 20×5, 20×6, 20×7, and 20×8, respectively.

 

a. Calculate the total cash dividends received by owners of preferred and common stock in each year.

b. Now assume that the preferred stock is noncumulative rather than cumulative. Calculate the total cash dividends received by owners of preferred and common stock in each year.

 

 

212.Kagel Corporation had 30,000 shares of $5 par value common stock issued and outstanding on December 31, 20×7. Each share was issued during 20×5 at $14 per share. Prepare entries in journal form without explanations for the following transactions occurring in 20×8:

 

Jan.

4

 

Purchased 5,000 shares of treasury stock for $16 per share. This is the first transaction involving its own stock ever engaged in by the company.

 

31

 

Sold 1,000 shares of treasury stock for $15 per share.

Feb.

20

 

Sold 1,000 shares of treasury stock for $18 per share.

Mar.

16

 

Sold 1,000 shares of treasury stock for $11 per share.

Apr.

5

 

Retired 2,000 shares of treasury stock.

May

8

 

Purchased 500 shares of treasury stock for $12 per share.

 

31

 

Retired the 500 shares of treasury stock purchased on May 8.

 

 

 

General Journal

Page 1

Date

Description

Post.

Ref.

Debit

Credit