ACCT 211 Connect Homework Chapter 11 Problems Liberty University Solution

Question 1

Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders’ equity during its first year of operations.

2. How many shares of common stock are outstanding at year-end?

3. What is the amount of minimum legal capital (based on par value) at year-end?

4. What is the total paid-in capital at year-end?

5. What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $786,000?

Question 2

Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016:

1. Prepare journal entries to record each of these transactions for 2017.

2. Prepare a statement of retained earnings for the year ended December 31, 2017.

Question 3

At September 30, the end of Beijing Company’s third quarter, the following stockholders’ equity accounts are reported.

In the fourth quarter, the following entries related to its equity are recorded:

2. Complete the following table showing the equity account balances at each indicated date.

Question 4

The equity sections from Atticus Group’s 2016 and 2017 year-end balance sheets follow.

Stockholders’ Equity (December 31, 2016)

The following transactions and events affected its equity during year 2017.

Jan. 5

Declared a $0.50 per share cash dividend, date of record January 10.

Mar. 20

Purchased treasury stock for cash.

Apr. 5

Declared a $0.50 per share cash dividend, date of record April 10.

July 5

Declared a $0.50 per share cash dividend, date of record July 10.

July 31

Declared a 20% stock dividend when the stock’s market value was $12 per share.

Aug. 14

Issued the stock dividend that was declared on July 31.

Oct. 5

Declared a $0.50 per share cash dividend, date of record October 10.

1. How many common shares are outstanding on each cash dividend date?

Question 5

2. What is the total dollar amount for each of the four cash dividends?

Question 6

3. What is the amount of the capitalization of retained earnings for the stock dividend?

Question 7

4. What is the per share cost of the treasury stock purchased?

Question 8

5. How much net income did the company earn during year 2017?

Question 9

Raphael Corporation’s common stock is currently selling on a stock exchange at $170 per share, and its current balance sheet shows the following stockholders’ equity section:

1. What is the current market value (price) of this corporation’s common stock?

Question 10

2. What are the par values of the corporation’s preferred stock and its common stock?

Question 11

3. If no dividends are in arrears, what is the book value per share of common stock?

Question 12

4. If two years’ preferred dividends are in arrears, what is the book value per share of common stock?

Question 13

5.1 If two years’ preferred dividends are in arrears and the board of directors declares cash dividends of $16,200, what total amount will be paid to the preferred and to the common shareholders?

5.2 What is the amount of dividends per share for the common stock? (Round your answer to two decimal places.)