1#
Canton, Inc. has stock outstanding as follows: 25,000 shares of $2.00 cumulative,
nonparticipating preferred stock of $50 par, and 100,000 shares of $25 par common. During
its first five years of operations, the following amounts were distributed as dividends: first
year, none; second year, $20,000; third year, $90,000; fourth year, $180,000; fifth year,
$250,000.
1) Calculate the dividends per share on each class of stock for each of the five years.
2) Redo #1, assuming the preferred stock is noncumulative
2#
The following selected accounts appear in the ledger of Cyma Environmental Corporation on
January 1, 2003.
Preferred 4% Stock, $100 par (10,000 shares authorized,
8,000 shares issued) …………………………………………… $800,000
PIC-excess of par-PF ………………………………………………….80,000
Common Stock, $20 par (60,000 shares authorized,
30,000 shares issued) …………………………………………… 600,000
PIC-excess of par-CS ……………………………………………….. 900,000
Retained Earnings ………………………………………………… 1,277,000
Journalize the entries to record the following transactions.
a. Issued 20,000 shares of common stock at $32 receiving cash.
b. Sold 1,000 shares of preferred 4% stock at $120.
c. Purchased 5,000 shares of treasury common for $220,000
d. Sold 2,000 shares of treasury common for $84,000
e. Sold 1,500 shares of treasury common for $68,500
f. Issued 10,000 shares of common stock in exchange for Land costing $385,000
3#
Selected transactions completed by Zebra Company appear below. Journalize the
transactions.
Jan. 5 Split the common stock 4 for 1 and reduced the par from $100 to $25 per share.
After the split, there were 100,000 common shares outstanding.
Feb. 20 Purchased 10,000 shares of treasury stock for $300,000.
Mar. 12 Declared the semiannual dividends of $4 on 20,000 shares of preferred stock and
$.50 on the outstanding common stock.
April 12 Paid the cash dividends.
June 5 Sold 5,000 shares of treasury stock at $33, receiving cash.
Sept. 2 Declared semiannual dividends of $4 on preferred stock, and $.50 on common
stock (before the stock dividend). In addition, a 4% common stock dividend was
declared on the common stock outstanding, to be capitalized at fair market value
of the common stock, which is estimated at $40.
Oct. 5 Paid the cash dividends and issued the certificates for the common stock dividend.