Question

Malton Hotel, Inc., included the following stockholders’ equity on its year-end b alance sheet at December 31, 2012, with all dollar amounts, except par value per share, adapted and in millions:
Stockholders’ Equity $ Millions
Paid-in Capital:
Preferred Stock, 8% cumulative, par value $1 0 per share;........ $ 62
50,000,000 shares authorized, 6,200,000 shares issued and outstanding
Common Stock, par value $3 per share; 750,000,000 shares
authorized, 239,000,000 shares issued and outstanding......... 71 7
Paid-in Capital in Excess of Par—Common.............. 68
Total Paid-in Capital...................... $ 847
Retained Earnings...................... 302
Total Stockholders’ Equity................... $1 ,1 49

Requirements
1. Identify the different issues of stock Malton Hotel, Inc., has outstanding.
2. Give the two entries to record issuance of the Malton Hotel, Inc., stock. Assume that all the stock was issued for cash. Explanations are not required.
3. Assume that preferred dividends are in arrears for 2011 and 2012. Record the declaration of a $40 million cash dividend on December 30, 2013. Assume no change in the preferred stock account in 2013. Use separate Dividends Payable accounts for preferred and common stock. Round to the nearest $1 million. An explanation is not required.



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  • CreatedApril 29, 2014
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