Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 6E
Exercise 8-6 Effect of issuing common stock on the
Newly formed S&J Iron Corporation has 50,000 shares of $10 par common stock authorized. On March 1, 2018, S&J Iron issued 6,000 shares of the stock for $16 per share. On May 2, the company issued an additional 10,000 shares for $18 per share. S&J Iron was not affected by other events during 2018.
Required
- a. Record the transactions in a horizontal statements model like the following one. In the
Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element was not affected by the event.
b. Determine the amount S&J Iron would report for common stock on the December 31, 2018, balance
sheet.
c. Determine the amount S&J Iron would report for paid-in capital in excess of par.
d. What is the total amount of capital contributed by the owners?
e. What amount of total assets would S&J Iron report on the December 31, 2018, balance sheet?
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Required information
Problem 8-24 (Algo) Common and preferred stock-issuances and dividends LO 1, 2
[The following information applies to the questions displayed below]
Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash:
• 1100.000 shares of no-par common stock were authorized; 277,000 shares were issued on January 1, 2019, at $31 per
share.
. 447,000 shares of $100 par value, 10.00% cumulative, preferred stock were authorized; 126.000 shares were issued on
January 1, 2019, at $125 per share.
• No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of
Permabilt Corp, declared dividends of $6,120.000, payable on February 12, 2022, to holders of record as of January 8,
2022.
Problem 8-24 (Algo) Part c
c. Calculate the common stock dividends per share declared during 2021. (Round your answer to 2 decimal places.)
Common stock dividends per share
Movt >
Required information
Problem 8-24 (Algo) Common and preferred stock-issuances and dividends LO 1, 2
[The following information applies to the questions displayed below.]
Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash:
• 1,100,000 shares of no-par common stock were authorized; 342,000 shares were issued on January 1, 2019, at $26 per
share.
• 381,000 shares of $90 par value, 9.10% cumulative, preferred stock were authorized; 132,000 shares were issued on
January 1, 2019, at $128 per share.
• No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of
Permabilt Corp. declared dividends of $6,260,000, payable on February 12, 2022, to holders of record as of January 8,
2022.
Problem 8-24 (Algo) Part c
c. Calculate the common stock dividends per share declared during 2021. (Round your answer to 2 decimal places.)
Common stock dividends per share
Exercise 19-24 (Algo) New shares; contingently issuable shares [LO19-6,19-12]
During 2024, its first year of operations, Kevin Berry Industries entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 100 million common shares, $1 par per share.
January 2
Issued 75 million common shares for cash.
January 2
Entered an agreement with the company president to issue up to 2 million additional shares of common stock in 2025 based on the earnings of Berry in 2025. If net income exceeds $120 million, the president will receive 1 million shares; 2 million shares if net income exceeds $130 million.
March 31
Issued 4 million shares in exchange for plant facilities.
Net income for 2024 was $125 million.
Required:
Compute basic and diluted earnings per share for the year ended December 31, 2024.
Note: Do not round intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
Chapter 8 Solutions
Survey Of Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - 5. What is the purpose of the articles of...Ch. 8 - 6. What is the function of the stock certificate?Ch. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - 9. What is a limited liability company? Discuss...Ch. 8 - Prob. 10Q
Ch. 8 - 11. What is the difference between contributed...Ch. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - 14. What is the meaning of each of the following...Ch. 8 - 15. What is the difference between cumulative...Ch. 8 - 16. What is no-par stock? How is it recorded in...Ch. 8 - 17. Assume that Best Co. has issued and...Ch. 8 - 18. If Best Co. issued 10,000 shares of 20 par...Ch. 8 - 19. What is the difference between par value stock...Ch. 8 - 20. Why might a company repurchase its own stock?Ch. 8 - 21. What effect does the purchase of treasury...Ch. 8 - 22. Assume that Day Company repurchased 1,000 of...Ch. 8 - 23. What is the importance of the declaration...Ch. 8 - 24. What is the difference between a stock...Ch. 8 - 25. Why would a company choose to distribute a...Ch. 8 - 26. What is the primary reason that a company...Ch. 8 - 27. If Best Co. had 10,000 shares of 20 par value...Ch. 8 - 28. When a company appropriates retained earnings,...Ch. 8 - Prob. 29QCh. 8 - Prob. 30QCh. 8 - Prob. 31QCh. 8 - 32. What are some reasons that a corporation might...Ch. 8 - Prob. 1ECh. 8 - Exercise 8-2 Effect of accounting events on the...Ch. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Exercise 8-5 Characteristics of capital stock The...Ch. 8 - Exercise 8-6 Effect of issuing common stock on the...Ch. 8 - Exercise 8-7 Recording and reporting common and...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Exercise 8-13 Recording and reporting treasury...Ch. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19PCh. 8 - Problem 8-20 Effect of business structure on...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Problem 8-23 Recording and reporting stock...Ch. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Problem 8-26 Treasury stock transactions and...Ch. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 1ATCCh. 8 - ATC 8-3 Research Assignment Analyzing Skecherss...Ch. 8 - Prob. 4ATCCh. 8 - ATC 11-7 Ethical Dilemma Bad news versus very bad...
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