common stock transactions and stockholders equity 266643

ACCT 221, Section C 803 Midterm Exam February 8 and 9, 2013  Here is your midterm exam. A completed exam must be posted in the assignments folder no later than 11:59 PM on Saturday, February 9 (Central European time). That gives you a window of 48 hours in which to complete the exam. Late assignments will not be accepted, nor will after the fact excuses. Plan ahead and do not put this off to the last minute.   You are to answer all five of the following questions, each of which WILL count for 20% of the exam grade. If any answers require a complicated calculation, include a clear explanation and / or calculation showing how you arrived at the answer. Answers that are not supported by your work will be marked down. All five questions deal with issues we have studied, so I hope you will not have too much difficulty with them. Chapter 13 material: Common Stock Transactions and Stockholders’ Equity On March 1, 2010, Blank Company began operation with a corporate charter authorizing 50,000 shares of $4 par value common stock. Over the company completed the following transactions: March 1 Sold 15,000 shares of its common stock for $100,000. Paid expenses incurred to obtain the charter and starting up and organizing the corporation $10,000. April 10 Sold 6,500 shares of common stock for $65,000 15 Purchased 2,500 shares of Common Stock for $25,000. May 31 The board of directors declared a $0.20 per share cash dividend to be paid on June 15 to shareholders of record on June 10. Record the above transactions in T accounts. Prepare the stockholders’ equity section of Blank Company’s balance sheet at May 31, 2010. Net Income earned during the first three months was $15,000. What effect, if any will Blank Company’s cash dividend declaration on May 31 have on its net income, retained earnings and cash flows? Chapter 14 material: Corporate Income Statement Information about of Newcomb Corporation’s income statement in 2009…