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Whispering Company has two classes of capital stock outstanding:
8%, $20 par preferred and $5 par common. At December 31, 2020, the
following accounts were included in stockholders’ equity.
Preferred Stock, 148,200 shares
$ 2,964,000
Common Stock, 1,991,000 shares
9,955,000
Paid-in Capital in Excess of Par—Preferred Stock
207,000
Paid-in Capital in Excess of Par—Common Stock
26,478,000
Retained Earnings
4,495,000
The following transactions affected stockholders’ equity during
2021.
Jan. 1
29,200 shares of preferred stock issued at $23 per share.
Feb....
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The stockholders’ equity accounts of Pronghorn Corp. on January
1, 2017, were as follows.
Preferred Stock (6%, $100 par noncumulative, 4,250 shares
authorized)
$255,000
Common Stock ($3 stated value, 350,000 shares authorized)
875,000
Paid-in Capital in Excess of Par Value—Preferred Stock
12,750
Paid-in Capital in Excess of Stated Value—Common Stock
560,000
Retained Earnings
686,000
Treasury Stock (4,250 common shares)
34,000
During 2017, the corporation had the following transactions and
events pertaining to its stockholders’ equity.
Feb.
1
Issued 5,440 shares...
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Exercise 15-17
Metlock Corporation’s post-closing trial balance at December 31,
2020, is shown as follows.
METLOCK CORPORATION
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2020
Dr.
Cr.
Accounts payable
$ 307,700
Accounts receivable
$ 492,000
Accumulated depreciation—buildings
189,000
Additional paid-in capital in excess
of par—common
1,386,000
From treasury stock
161,000
Allowance for doubtful accounts
29,000
Bonds payable
319,000
Buildings
1,496,000
Cash
188,000
Common stock ($1 par)
202,000
Dividends payable (preferred stock—cash)
4,300
Inventory
609,000
Land
380,000
Preferred stock ($50 par)
450,000
Prepaid...
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On January 1, 2022, Tamarisk, Inc. had these stockholders’
equity balances.
Common Stock, $1 par (2,900,000
shares authorized, 655,000 shares issued and outstanding)
$655,000
Paid-in Capital in Excess of Par
Value
1,590,000
Retained Earnings
683,000
Accumulated Other Comprehensive Income
60,000
During 2022, the following transactions and events
occurred.
1.
Issued 55,000 shares of $1 par
value common stock for $2 per share.
2.
Issued 59,500 shares of common
stock for cash at $6 per share.
3.
Purchased 21,100 shares of...
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On January 1, 2022, Tamarisk, Inc. had these stockholders’
equity balances.
Common Stock, $1 par (2,900,000
shares authorized, 655,000 shares issued and outstanding)
$655,000
Paid-in Capital in Excess of Par
Value
1,590,000
Retained Earnings
683,000
Accumulated Other Comprehensive Income
60,000
During 2022, the following transactions and events
occurred.
1.
Issued 55,000 shares of $1 par
value common stock for $2 per share.
2.
Issued 59,500 shares of common
stock for cash at $6 per share.
3.
Purchased 21,100 shares of...
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Cheyenne Corp. has issued 91,000 shares of $5 par value common
stock. It was authorized 499,000 shares. The paid-in capital in
excess of par value on the common stock is $264,000. The
corporation has reacquired 6,700 shares at a cost of $55,000 and is
currently holding those shares. It also had accumulated other
comprehensive income of $67,000.
The corporation also has 1,700 shares issued and outstanding of 8%,
$104 par value preferred stock. It was authorized 10,900 shares.
The paid-in...
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At December 31, 2020, the available-for-sale debt securities for
Storrer, Inc. are as follows. The securities are considered to be a
long-term investment.
Security
Cost
Fair Value
A
$17,500
$16,000
B
12,500
14,000
C
23,000
21,000
$53,000
$51,000
Prepare the adjusting entry at December 31, 2020, to report the
securities at fair value. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No entry" for the
account titles and...
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On January 1, 2020, Crane Corporation had the following
stockholders’ equity accounts.
Common Stock (no par value, 91,000 shares issued and
outstanding)
$1,385,000
Retained Earnings
546,000
During the year, the following transactions occurred.
Feb. 1
Declared a $1 cash dividend per share to stockholders of record
on February 15, payable March 1.
Mar. 1
Paid the dividend declared in February.
Apr. 1
Announced a 3-for-1 stock split. Prior to the split, the market
price per share was $37.
July 1...
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On December 31, 2020, Sage Company has $6,975,000 of short-term
debt in the form of notes payable to Gotham State Bank due in 2021.
On December 28, 2020, Sage enters into a refinancing agreement with
Gotham that will permit it to borrow up to 67% of the gross amount
of its accounts receivable. Receivables are expected to range
between a low of $5,983,000 in May to a high of $7,983,000 in
October during the year 2021. The interest cost of...
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Concord Corporation sold $2,950,000, 9%, 5-year bonds on January
1, 2022. The bonds were dated January 1, 2022, and pay interest on
January 1. Concord Corporation uses the straight-line method to
amortize bond premium or discount.
Prepare all the necessary journal entries to record the issuance
of the bonds and bond interest expense for 2022, assuming that the
bonds sold at 103. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
Date
Account Titles and...
Exercise 15-17
Metlock Corporation’s post-closing trial balance at December 31,
2020, is shown as follows.
METLOCK CORPORATION
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2020
Dr.
Cr.
Accounts payable
$ 307,700
Accounts receivable
$ 492,000
Accumulated depreciation—buildings
189,000
Additional paid-in capital in excess
of par—common
1,386,000
From treasury stock
161,000
Allowance for doubtful accounts
29,000
Bonds payable
319,000
Buildings
1,496,000
Cash
188,000
Common stock ($1 par)
202,000
Dividends payable (preferred stock—cash)
4,300
Inventory
609,000
Land
380,000
Preferred stock ($50 par)
450,000
Prepaid...
Cheyenne Corp. has issued 91,000 shares of $5 par value common
stock. It was authorized 499,000 shares. The paid-in capital in
excess of par value on the common stock is $264,000. The
corporation has reacquired 6,700 shares at a cost of $55,000 and is
currently holding those shares. It also had accumulated other
comprehensive income of $67,000.
The corporation also has 1,700 shares issued and outstanding of 8%,
$104 par value preferred stock. It was authorized 10,900 shares.
The paid-in...
At December 31, 2020, the available-for-sale debt securities for
Storrer, Inc. are as follows. The securities are considered to be a
long-term investment.
Security
Cost
Fair Value
A
$17,500
$16,000
B
12,500
14,000
C
23,000
21,000
$53,000
$51,000
Prepare the adjusting entry at December 31, 2020, to report the
securities at fair value. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No entry" for the
account titles and...
On January 1, 2020, Crane Corporation had the following
stockholders’ equity accounts.
Common Stock (no par value, 91,000 shares issued and
outstanding)
$1,385,000
Retained Earnings
546,000
During the year, the following transactions occurred.
Feb. 1
Declared a $1 cash dividend per share to stockholders of record
on February 15, payable March 1.
Mar. 1
Paid the dividend declared in February.
Apr. 1
Announced a 3-for-1 stock split. Prior to the split, the market
price per share was $37.
July 1...