HW Problem 11.1 - Sneijder Company\'s shareholder\'s equity contained the follow
ID: 2401396 • Letter: H
Question
HW Problem 11.1 - Sneijder Company's shareholder's equity contained the following items on 12/31/X1 Common Stock- $2 par value, 200,000 shares authorized, . $160,000 $640,000 $200,000 $1,500,000 Paid in Capital in Excess of Par-Common Preferred Stock-10% non-cumulative, $20 par value, Retained Earnings Total Shareholder's Equity During 20X2 Sneijder had the following transactions: 1/15 Issued 20,000 additional shares of preferred stock and received $650,000. 2/20 Declared dividends of S3 per share common stock with 3/15 record date and 3/31 payment date. 3/31 Paid the common dividends declared on February 20 4/15 Purchased 10,000 of its own common shares for $105,000. 6:30 Declared preferred dividends of 10% par value. Record date is 7/15 and payment date 731. 7/20 Issued 10,000 additional shares of preferred stock and received $400,000. 731 Paid the preferred dividends declared June 30h 9/08 Purchased 5,000 of its own common shares for $40,000. 12/31 Closed $2 million of earnings from the income summary into retained eanings. a. Prepare journal entries for 20X2. b. Prepare a statement of retained earnings for the year ending 12/3l/X2. c. Prepare the shareholder's equity section from Sneijder Company's balance sheet. HW Problem 11.2 - Persie Company's common stock is currently selling for $50 per share on the New York Stock Exchange, and its stockholder's equity on 12/31/X2 includes the following. Common Stock -$ par value, 100,000 shares authorized 50,000 issued and 40,000 outstanding Paid in Capital in Excess of Par-Common Preferred Stock-7% non-cumulative, S-par value, .. . $120,000 ..$550,000 20,000 shares authorized, 5,000 issued and outstanding Retained Earnings $500,000 $1,280,000 S120.000) $1,160,000 Less Treasury Stock a. What is the par value of Persie Company's common stock? b. What is the par value of Persie Company's preferred stock? c. How many shares of treasury stock does Persie hold? d. If Persie's treasury stock was acquired in a single transaction a few years back, what was the market value per share at that time?Explanation / Answer
Ans 11.1 Date Accounts Title Dr Cr 15-Jan Cash $650,000 Preferred Stock (20000*20) $400,000 Paid in capital in excess of par-Preferred Stock $250,000 20-Feb Retained Earnings $240,000 Cash Dividend Payable-Common (80000*3) $240,000 31-Mar Cash Dividend Payable-Common (80000*3) $240,000 Cash $240,000 15-Apr Treasury stock $105,000 Cash $105,000 30-Jun Retained Earnings 60000 Cash Dividend Payable-Preferred (30000*20*10%) $60,000 20-Jul Cash $400,000 Preferred Stock (10000*20) $200,000 Paid in capital in excess of par-Preferred Stock $200,000 31-Jul Cash Dividend Payable-Preferred (30000*20*10%) $60,000 Cash $60,000 8-Sep Treasury stock $40,000 Cash $40,000 31-Dec Retained Earnings 2000000 Income Summary $2,000,000 b) Statement of Retained Eranings Beginning Balance $500,000 Add: net Income 2000000 $2,500,000 Less: cash Dividend-Common ($240,000) Cash Dividend-Preferred ($60,000) Ending Balance $2,200,000 c) Shareholder Equity Section Common stock $160,000 Paid in capital in excess of par-Common Stock 640000 Preferred stock $600,000 Paid in capital in excess of par-Preferred Stock $450,000 Retained Earnings $2,200,000 Treasury stock (at cost) ($145,000) Ending Stockholder Equity $3,905,000 11.2 a) Par value common stock (120000/50000) 2.40 b) Par value preferred (80000/5) 16000 c) treasury stock (50000-40000) 10000 Dear student there are four different question I did first two
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