ACC 557 Homework Chapter 12 (E12-4, E12-7, E12-15, E12-17, P12-3A, P12-7A) PLEASE DOWNLOAD HEREQuestion 12 E- 4Grossman Corporation issued 1,000 shares of stock.InstructionsPrepare the entry for the issuance under the following assumptions.The stock had a par value of $5 per share and was issued for a total of $52,000Question 12-7Garza Co. had the following transactions during the current period.Mar. 2Issued 5,000 shares of $1 par value common stock to attorneys in payment of abill for $30,000 for services provided in helping the company to incorporate.June 12Issued 60,000 shares of $1 par value common stock for cash of $375,000.July 11Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share.Nov. 28Purchased 2,000 shares of treasury stock for $80,000.InstructionsJournalize the transactions.Question E 12-15
On October 31, the stockholders equity section of Omar Company consists ofcommon stock $600,000 and retained earnings $900,000. Omar is consideringthe following two courses of action: (1) declaring a 5% stock dividend on the60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split thatwill reduce par value to $5 per share. The current market price is $14 per share.InstructionsComplete the tabular summary of the effects of the alternative actions on thecomponents of stockholders equity, outstanding shares, and book value pershare.Question E12-17On January 1, 2008, Castle Corporation had retained earnings of $550,000.During the year, Castle had the following selected transactions.1. Declared cash dividends $120,000.2. Corrected overstatement of 2007 net income because of depreciation error$30,000.3. Earned net income $350,000.4. Declared stock dividends $80,000.InstructionsComplete the retained earnings statement for the year.Question P12-3AThe stockholders equity accounts of Jajoo Corporation on January 1, 2008, wereas follows.Preferred Stock (10%, $100 par, noncumulative, 5,000 shares authorized)$ 300,000Common Stock ($5 stated value, 300,000 shares authorized)1,000,000Paid-in Capital in Excess of Par Value-Preferred Stock20,000Paid-in Capital in Excess of Stated Value-Common Stock
425,000Retained Earnings488,000Treasury Stock-Common (5,000 shares)40,000During 2008, the corporation had the following transactions and events pertainingto its stockholders equity.Feb. 1Issued 3,000 shares of common stock for $25,000.Mar. 20Purchased 1,500 additional shares of common treasury stock at $8 per share.June 14Sold 4,000 shares of treasury stock-common for $36,000.Sept. 3Issued 2,000 shares of common stock for a patent valued at $17,000.Dec. 31Determined that net income for the year was $340,000.Question 12-7AOn January 1, 2008, Snider Corporation had the following stockholders equityaccounts.Common Stock ($10 par value, 90,000 shares issued and outstanding)$900,000Paid-in Capital in Excess of Par Value200,000Retained Earnings
540,000During the year, the following transactions occurred.Jan. 15Declared a $1 cash dividend per share to stockholders of record on January 31,payable February 15.Feb. 15Paid the dividend declared in January.Apr. 15Declared a 10% stock dividend to stockholders of record on April 30, distributableMay 15. On April 15, the market price of the stock was $15 per share.May 15Issued the shares for the stock dividend.July 1Announced a 2-for-1 stock split. The market price per share prior to theannouncement was $17. (The new par value is $5.)Dec. 1Declared a $0.50 per share dividend to stockholders of record on December 15,payable January 10, 2009.Dec. 31Determined that net income for the year was $250,000.