At its year ended Dec 31, 2011 PJ, a publicly traded company listed in the shareholders'...
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At its year ended Dec 31, 2011 PJ, a publicly traded company listed in the shareholders' equity accounts: NYSX reported the following $5,500,000 Preferred Shares, $1 cumulative dividend, 1,000,000 authorized, 250,000 issued and outstanding Common shares, no par, unlimited number authorized, 500,000 issued Contributed Surplus – common shares retirement Retained earnings Shareholder's Equity 8,000,000 75,000 4,500,000 $18.075.000 The holdings in the preferred shares have not changed for the last five years. The last dividend declaration was at the end 2010 The following transactions occurred during 2012 PJ repurchased and immediatery cancelled 50,000 common shares at cost of $18 per Mar 30 share. PJ repurchased and retired 30,000 preferred shares at a price of $22.5 each. Note that repurchased shares lose any rights to dividend. June 30 The board of directors declared 5% stock dividend on common shares and also declared dividends for the preferred shares. The common shares were trading at $20 per share on this day. All dividend declared will be settled on October 31. The board of directors declared 2 for 1 stock split on common shares effective on this date. The common shares were trading at $22 per share on this day. All dividend declared will be settled on October 31. Sep 30 Dec 1 2. What is the net income or loss for the year ended IDec 31, 2012 ? The balance in retained earnings on Dec 31, 2012 amount to $4,345,000. (Net loss should be indicated by a minus sign.) A Net income (loss) for the year 3. Based on the above transactions in part (1), identify the impact on the accounts (total assets, common shares value, retained earnings and # of common shares outstanding) for each of the following transactions by indicating increase, decrease or no effect: (a) Declaration of stock dividends (b) 2 for 1 stock split (c) Repurchase of shares at a price higher than the average price (d) Issue new shares in exchange for a building A C D E 1 Assets Common Shares Retained Earnings # of Shares (a) Declaration of stock dividends (b) 2 for 1 stock split (c) Repurchase of shares at a price 4 higher than the average price (d) Issue new shares in exchange for a building At its year ended Dec 31, 2011 PJ, a publicly traded company listed in the shareholders' equity accounts: NYSX reported the following $5,500,000 Preferred Shares, $1 cumulative dividend, 1,000,000 authorized, 250,000 issued and outstanding Common shares, no par, unlimited number authorized, 500,000 issued Contributed Surplus – common shares retirement Retained earnings Shareholder's Equity 8,000,000 75,000 4,500,000 $18.075.000 The holdings in the preferred shares have not changed for the last five years. The last dividend declaration was at the end 2010 The following transactions occurred during 2012 PJ repurchased and immediatery cancelled 50,000 common shares at cost of $18 per Mar 30 share. PJ repurchased and retired 30,000 preferred shares at a price of $22.5 each. Note that repurchased shares lose any rights to dividend. June 30 The board of directors declared 5% stock dividend on common shares and also declared dividends for the preferred shares. The common shares were trading at $20 per share on this day. All dividend declared will be settled on October 31. The board of directors declared 2 for 1 stock split on common shares effective on this date. The common shares were trading at $22 per share on this day. All dividend declared will be settled on October 31. Sep 30 Dec 1 2. What is the net income or loss for the year ended IDec 31, 2012 ? The balance in retained earnings on Dec 31, 2012 amount to $4,345,000. (Net loss should be indicated by a minus sign.) A Net income (loss) for the year 3. Based on the above transactions in part (1), identify the impact on the accounts (total assets, common shares value, retained earnings and # of common shares outstanding) for each of the following transactions by indicating increase, decrease or no effect: (a) Declaration of stock dividends (b) 2 for 1 stock split (c) Repurchase of shares at a price higher than the average price (d) Issue new shares in exchange for a building A C D E 1 Assets Common Shares Retained Earnings # of Shares (a) Declaration of stock dividends (b) 2 for 1 stock split (c) Repurchase of shares at a price 4 higher than the average price (d) Issue new shares in exchange for a building
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Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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