ACCT 211 Connect Homework Chapter 11 Exercises Liberty University Solution

Question 1

Rodriguez Corporation issues 10,000 shares of its common stock for $203,300 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.

Question 2

Prepare journal entries to record the following four separate issuances of stock.

Question 3

Sudoku Company issues 30,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $230,000 and the building at $379,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

Question 4

On June 30, 2017, Sharper Corporation’s common stock is priced at $27.00 per share before any stock dividend or split, and the stockholders’ equity section of its balance sheet appears as follows.

1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock’s par value. Answer these questions about stockholders’ equity as it exists after issuing the new shares.

a.,b.& c. Complete the below table to calculate the retained earnings balance, total stockholders’ equity and number of outstanding shares.

2. Assume that the company implements a 2-for-1 stock split instead of the stock dividend in part 1. Answer these questions about stockholders’ equity as it exists after issuing the new shares.

a.,b.& c. Complete the below table to calculate the retained earnings balance, total stockholders’ equity and number of outstanding shares.

Question 5

York’s outstanding stock consists of 65,000 shares of 7.0% preferred stock with a $5 par value and also 110,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends:

Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common. Also compute the total dividends paid to each class for the four years combined. Assume that the preferred stock is noncumulative. (Round your "Dividend per Preferred Share" answers to 3 decimal places.)

Question 6

Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine the total dividends paid to each class for the four years combined. (Round your "Dividend per Preferred Share" answers to 3 decimal places.)

Question 7

On October 10, the stockholders’ equity of Sherman Systems appears as follows.

Common stock–$10 par value, 80,000 shares authorized, issued, and outstanding

Paid-in capital in excess of par value, common stock

Retained earnings

Total stockholders’ equity

1. Prepare journal entries to record the following transactions for Sherman Systems.

2. Prepare the revised equity section of its balance sheet after the October 11 treasury stock purchase.

Question 8

The following information is available for Amos Company for the year ended December 31, 2017.

Prepare a 2017 statement of retained earnings for Amos Company. (Amounts to be deducted should be indicated with a minus sign.)