Question. Find the mean, variance and standard deviation of the binominal distribution with the given values of n and p. N=126 , p=0.84 The mean u, is __ Round to nearest tenth The variance, o^2, is __ Round to nearest tenth The standard deviation o, is __ Round to nearest tenth Solution The mean u is n*p or 126*0.84 = 105.8 The variance n*p*(1-p) or 126*0.84*0.16 = 16.9 The stdev is sqrt of variance or sqrt of 16.9 = 4.1.

1. Question1: 30% points:
On December 31, 2014, Flimsy Incorporated, had the following balances (all balances are
normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares
issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and
outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2014 and were not recorded:
a. On January 1, Flimsy declared a 5% stock dividend on its common stock when the
market value of the common stock was $15 per share. Stock dividends were distributed on
January 31 to shareholders as of January 25.
b. On February 15, Flimsy reacquired 1,000 shares of common stock for $20 each.
c. On March 31, Flimsy reissued 250 shares of treasury stock for $25 each.
d. On July 1, Flimsy reissued 500 shares of treasury stock for $16 each.
e. On October 1, Flimsy declared full year dividends for preferred stock and $1.50 cash
dividends for outstanding shares and paid shareholders on October 15.
f. One December 15, Flimsy split common stock 2 shares for 1.
g. Net Income for 2014 was $275,000.
Requirements:
a. Prepare journal entries for the transactions listed above.
b. Prepare a Stockholders' section of a classified balance sheet as of December 31, 2014.
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares
issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and

2. outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
Solution
b)
**Paid in capital -common stock = 150,000 +25000 for stock dividend- 750 for treasury stock
reissued (insufficient) = 174,250
**Retained earnings= 700,000 - 75000 -207125 + 275,000
= 692875
**common stock issued and outstanding = after stock split shares outstanding + stock held as
treasury
= 209500+250
= 209750 sharesDateAccount titleDebitcreditjan 1Retained
earnings 75000Dividend payable75000[Being stock dividend declared (100,000 .05 )
=5000shares * 15 = 75000jan 31Dividend payable75000common stock [5000*10]50,000paid
in capital -common stock25000[being stock dividend paid]feb 15Treasury stock
[1000*20]20000cash20000[being stock outstanding repurchased]march 31cash [250*25
]6250Treasury stock [250 *20]5000Paid in capital in excess of par -Treasury stock1250[being
treasury stock reissued]july 1cash [500*16]8000Paid in capital -common stock [10000-
8000-1250]750Paid in capital -treasury stock1250**restricted to amount availableTreasury
stock [500 *20]10,000oct 1Retained earnings207,125Preferred dividend payable [1,000,000
*.05]50,000common stock dividend payable [100,000 +5000stock dividend - 250 held in
treasury= 104750 shares * 1.50157,125[Being dividend declared ]oct 15Preferred dividend
payable50000common stock dividend payable157125cash207125[dividend paid
recorded]dec15common stock ( 104,750 shares @ 10 par)1,047,500common stock (209,500
shares @ 5 par)1,047,500[stock split of shares made recorded] 104750 *2 = 20950031 decnet
income275,000Retained earning275,000[being net income earned closed to retained earning]