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Chapter 13: Q3SE (page 708)
Journalizing issuance of stock鈥攏o-par
Wolcott Corporation issued 5,000 shares of no-par common stock for $2 per share on January 13. Record the stock issuance
Cash will be debited, andCommon stock- No par value will be credited with $10,000.
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Question: Identifying sources of equity, stock issuance, and dividends
Tillman Comfort Specialists, Inc. reported the following stockholders鈥� equity on its balance sheet at June 30, 2018:
Preferred Stock鈥�5%, ? Par Value; 625,000 shares
authorized, 325,000 shares issued and outstanding
Paid-In Capital:
\( 1,300,000
1,350,000
Stockholders鈥� Equity
Paid-In Capital in Excess of Par鈥擟ommon 2,600,000
Total Paid-In Capital 5,250,000
Retained Earnings 11,800,000
Total Stockholders鈥� Equity \) 17,050,000
Common Stock鈥�$1 Par Value; 7,000,000 shares
authorized, 1,350,000 shares issued and outstanding
Requirements
3. Make two summary journal entries to record issuance of all the Tillman Comfort Specialists stock for cash. Explanations are not required.
Computing rate of return on common stockholders鈥� equity Wyler, Inc.鈥檚 2018 balance sheet reported the following items鈥攚ith 2017 figures given for comparison:
Total Assets Total Liabilities and Stockholders鈥� Equity Total Liabilities Total Stockholders鈥� Equity (all common) WYLER, INC. Balance Sheet As of December 31, 2018, and December 31, 2017 \( 39,600 December 31, 2018 17,100 22,500 18,500 14,962 December 31, 2017 \) 39,600 \( 33,462 \) 33,462 Net income for 2018 was $3,690.
Compute Wyler鈥檚 rate of return on common stockholders鈥� equity for 2018.
A Identifying sources of equity, stock issuance, and dividends
Voyage Comfort Specialists, Inc. reported the following stockholders鈥� equity on its balance sheet at June 30, 2018:
Preferred Stock鈥�7%, ? Par Value; 625,000 shares
authorized, 280,000 shares issued and outstanding
Paid-In Capital:
\( 1,400,000
1,340,000
Stockholders鈥� Equity
Paid-In Capital in Excess of Par鈥擟ommon 2,900,000
Total Paid-In Capital 5,640,000
Retained Earnings 12,000,000
Total Stockholders鈥� Equity \) 17,640,000
Common Stock鈥擻(1 Par Value; 3,000,000 shares
authorized, 1,340,000 shares issued and outstanding
Requirements
4. No preferred dividends are in arrears. Journalize the declaration of a \)500,000 dividend at June 30, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends Payable accounts for preferred and common stock. An explanation is not required.
How does preferred stock differ from common stock?
A Identifying sources of equity, stock issuance, and dividends
Voyage Comfort Specialists, Inc. reported the following stockholders鈥� equity on its balance sheet at June 30, 2018:
Preferred Stock鈥�7%, ? Par Value; 625,000 shares
authorized, 280,000 shares issued and outstanding
Paid-In Capital:
\( 1,400,000
1,340,000
Stockholders鈥� Equity
Paid-In Capital in Excess of Par鈥擟ommon 2,900,000
Total Paid-In Capital 5,640,000
Retained Earnings 12,000,000
Total Stockholders鈥� Equity \) 17,640,000
Common Stock鈥�$1 Par Value; 3,000,000 shares
authorized, 1,340,000 shares issued and outstanding
Requirements
1. Identify the different classes of stock that Voyage Comfort Specialists has outstanding.
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