Accounting question help please

Posted on 2013-11-22 13:10:00 in Accounting by ANGELA DAILY

QUESTION 11
i need help in the statement of Retained earnings by finding less:cash dividends declared and less and treasury stock reissuance and also the retained earnings in the stock holders equity balance sheet.

Common stock $10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $400,000
Paid-in capital in excess of par value, common stock $60,000
Retained earnings $270,000
Total stockholders' equity $730,000

In year 2014, the following transactions affected its stockholders equity accounts.

Jan. 1 Purchased 4,000 shares of its own stock at $20 cash per share.
Jan. 5 Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record.
Feb. 28 Paid the dividend declared on January 5.
July 6 Sold 1,500 of its treasury shares at $24 cash per share.
Aug. 22 Sold 2,500 of its treasury shares at $17 cash per share.
Sept. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct. 28 Paid the dividend declared on September 5.
Dec. 31 Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

1. Prepare journal entries to record each of these transactions for 2014.

Jan. 1 Treasury stock, Common 80,000 DR, Cash 80,000 CR
Jan. 5 Retained earnings 72,000 DR
Common dividend payable 72,000 CR

Feb. 28 Common dividend payable 72,000 DR

Cash 72,000 CR
Jul 06 Cash 36,000 DR
Paid-in capital, Treasury stock 6,000 CR
Treasury stock, Common 30,000 CR

Aug. 22 Cash 42,500 DR
Paid-in capital, Treasury stock 6,000 DR
Retained earnings 1,500 DR
Treasury stock, Common 50,000 CR
Sep 05 Retained earnings 80,000 DR
Common dividend payable 80,000 CR
Oct. 28 Common dividend payable 80,000 DR
Cash 80,000 CR
Dec. 31 Income summary 388,000 DR
Retained earnings 388,000 CR

2. Prepare a statement of retained earnings for the year ended December 31, 2014.
R/E Dec 31, 2013 $270,000
Add: Net Income $388,000
Less:cash dividends declared ????
Less: treasury stock reissuances ????
R/E Earnings Dec 31 2014 ???


3. Prepare the stockholders equity section of the company's balance sheet as of December 31, 2014.
Common stock-$10 par value $400,000
Paid in capital in excess of par, common stock $60,000
Total contributed capital 460,000
R/E earnings ???????
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QUESTION 12
I need help with questions 6.1 and 6.2

Raphael Corporations common stock is currently selling on a stock exchange at $85 per share, and its current balance sheet shows the following stockholders equity section:
Preferred stock 5% cumulative, $___ par value, 1,000 shares
authorized, issued, and outstanding $ 50,000
Common stock $___ par value, 4,000 shares authorized, issued,
and outstanding $80,000
Retained earnings $150,000
Total stockholders' equity $ 280,000

1. What is the current market value (price) of this corporations common stock?

Market Price: $85
2. What are the par values of the corporations preferred stock and its common stock?
Corporations preferred stock : 50
Corporations common stock : 20

3.If no dividends are in arrears, what are the book values per share of the preferred stock and the common stock?
Preferred Shares: 50,000/1,000
Common Shares: 230,000/4,000


4. If two years preferred dividends are in arrears, what are the book values per share of the preferred stock and the common stock?
Preferred Shares: 55,000/1,000
Common Shares: 225,000/4,000


5.If two years preferred dividends are in arrears and the preferred stock is callable at $55 per share, what are the book values per share of the preferred stock and the common stock?
Preferred Shares: 60,000/1,000
Common Shares: 220,000/4,000

6.1 If two years preferred dividends are in arrears and the board of directors declares cash dividends of $11,500, what total amount will be paid to the preferred and to the common shareholders?
Total amount paid to the preferred shareholder: ????
Total amount paid to the common shareholders: ?????


6.2 What is the amount of dividends per share for the common stock? (Round your answers to two decimal places.)
Dividends per share: ???????

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