16) JKL Company had the following shareholders’ equity section at December 31, 2011:
Preferred stock, $100 par, 8% cumulative
$1,250,000
Common stock, $2 par value
800,000
Paid-in capital in excess of par, common stock
3,500,000
Retained earnings
3,167,000
Treasury stock (25,000 shares at cost)
(300,000)
Total
$8,417,000
1.
How many shares of preferred stock are outstanding?
2.
What is the total amount received from issuing common stock?
3.
How many shares of common stock are issued?
4.
What was the average selling price of a share of common stock?
5.
If $160,000 of dividends were declared and no dividends were in arrears, how much of that amount would go to the preferred shareholders?
6.
If $160,000 of dividends were declared and no dividends were in arrears, how much of that amount would go to the common shareholders?
7.
How many shares of common stock are outstanding?
8.
If $160,000 of dividends were declared and no dividends were in arrears, how much is the dividend per common share?
17) LMN Company had the following shareholders’ equity section at December 31, 2012:
Preferred stock, $50 par, 6% cumulative
$ 500,000
Common stock, $2 par value
1,000,000
Paid-in capital in excess of par, common stock
5,500,000
Retained earnings
2,598,000
Treasury stock (5,000 shares at cost)
(60,000)
Total
$9,538,000
1.
How many shares of preferred stock are outstanding?
2.
What is the total amount received from issuing common stock?
3.
How many shares of common stock are issued?
4.
What was the average selling price of a share of common stock?
5.
If $200,000 of dividends were declared and no dividends were in arrears, how much of that amount would go to the preferred shareholders?
6.
If $200,000 of dividends were declared and no dividends were in arrears, how much of that amount would go to the common shareholders?
7.
How many shares of common stock are outstanding?
8.
If $200,000 of dividends were declared and no dividends were in arrears, how much is the dividend per common share? Round your answer to the nearest cent.
18) The following information is available for TWO years ended December 31, 20111 and 2012:
Dec.31, 2012
Dec.31, 2011
Common stock ($2 par value)
$ 22,000
$ 20,000
Additional paid-in capital
90,000
80,000
Retained earnings
106,000
100,000
Treasury stock
(2,600)
(600)
Total shareholders’ equity
$215,400
$199,400
1. From which financial statement did the above information come?
2. If this company declared dividends of $4,000 in 2012, how much income did it earn that year?
3. What event could have caused Treasury stock to change from $(600) in 2011 to
$(2,600) in 2012?
4. How many shares of common stock are issued at the end of 2011?
5. How many shares of common stock are issued at the end of 2012?
6. What event could have caused the change in the common stock account from 2011 to 2012?
7. What was the average price of the common stock issued during 2012?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more