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Accounting 5th Edition Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones - Solutions
DE 16-18 Suppose Nike Incorporated sells athletic shoes to a Russian company on March 14. Nike agrees to accept 2,000,000 Russian rubles. On the date of sale, the ruble is quoted at $0.036. Nike collects half the receivable on April 19, when the ruble is worth $0.034. Then. on May 10, when the
DE16-19 Page 636 includes a sequence of Shipp Belting journal entries for transactions denominated in Mexican pesos. Suppose the foreign-exchange rate for a peso is $0.118 on July 2. Record Shipp Belting's collection of cash on July 2. On page 636. Shipp Belting buys inventory for which Shipp must
DE16-20 Exhibit 16-8, page 638, outlines some differences between accounting in the United States and accounting in other countries. American companies transact more business with British companies than with any other. Contrary to what you might expect, there are several important differences
E16-1 Nations Bank, headquartered in Charlotte. North Carolina, holds huge portfolios of investments. Suppose Nations Bank completed the following investment transactions: 20X1 Dec. 6 Purchased 1.000 shares of Goodyear Tire & Rubber Co. stock for $70,000. Nations Bank plans to sell the stock at a
E16-2 Journalize the following long-term available-for-sale investment transactions of Abbey-Simms Inc. Explanations are not required.a. Purchased 400 shares (8%) of Marcor Corporation common stock at $38 per share, with the intent of holding the stock for the indefinite future.b. Received cash
E16-3 Journalize the following investment transactions of Vemcor Manufacturing, Inc.: Aug. 1 Sep. 12 Nov. 23 Purchased 500 shares (2%) of Vardaman Corporation common stock as a long- term available-for-sale investment, paying $44 per share. Received cash dividend of $1 per share on the Vardaman
E16-4 Late in the current year. Travel Consumer Corporation bought 3,000 shares of National Geographic common stock at $81.88. 600 shares of AT&T Corp. stock at $46.75, and 1.400 shares of Hitachi stock at $79-all as available-for-sale investments. At December 31, the Wall Street Journal reports
E16-5 Suppose Dillard's, Inc., owns equity-method investments in several other depart- ment-store companies. Suppose Dillard's paid $2 million to acquire a 25% investment in Italian Imports Company. Assume that Italian Imports Company reported net income of $780.000 for the first year and declared
Without making journal entries, record the transactions of Exercise 16-5 directly in the M Dillard's account. Long-Term Equity-Method Investment in Italian Imports. Assume that after s all the noted transactions took place, Dillard's sold its entire investment in Italian Imports for cash of
E16-7 Precision Automotive Parts paid $145,000 for a 40% investment in the common stock of Auto Chief, Inc. For the first year. Auto Chief reported net income of $84,000 and at year end declared and paid cash dividends of $16,000. On the balance sheet date, the market value of Precision's
E16-8 On March 31, 20X3. Remke Corporation paid 92 1/4 for 7% bonds of Dean Witter Financial Services as a long-term held-to-maturity investment. The maturity value of the bonds will be $30,000 on September 30, 20X7. The bonds pay interest on March 31 and September 30. At December 31, the bonds'
E16-9 Journalize the following foreign-currency transactions. Explanations are not required. Nov. 17 Purchased inventory on account from a Japanese company. The price was 200,000 yen, and the exchange rate of the yen was $0.0088. Dec. 16 Paid the Japanese supplier when the exchange rate was
E16-10 AMP Incorporated, a world leader in the manufacture of electronic connection devices, reported the stockholders' equity on its balance sheet on page 646, as adapted, at December 31. Required 1. AMP's balance sheet also reports available-for-sale investments at $288 million. What was AMP's
E16-11 Whirlpool Corporation is a leading manufacturer of household appliances. In Brazil and Mexico, Whirlpool operates through affiliated companies, whose stock Whirlpool owns in various percentages between 20% and 50%. Whirlpool's financial statements reported these items (adapted): Balance
P16-1A During the second half of 20X4, the operations of Maine Lobsters, Inc., generated excess cash, which the company invested in securities, as follows: July 2 Aug. 21 Sep. 16 Oct. 8 Purchased 3,500 shares of common stock as a trading investment, paying $12.75 per share. Received semiannual cash
P16-2A The beginning balance sheet of Quill.com, Inc.. included the following: Long-Term Equity-Method Investments................ $657.000 During the year the company completed the following investment transactions: Mar. 3 4 May 14 June 15 Oct. 24 Dec. 15 31 31 Purchased 5,000 shares of LBO
P16-3A Orly Chemical Company owns stock in numerous other companies. During 20X4. Orly completed the following long-term investment transactions: 20X4 May 1 July 1 Sep. 15 Oct. 12 Dec. 14 Purchased 8,000 shares, which exceeds 20%, of the common stock of DeGaulle Company at total cost of $720.000.
P16-4A Financial institutions hold large quantities of bond investments. Suppose Goldman Sachs purchases $800,000 of 8% bonds of Xerox Corporation for 92 on January 31, 20x0. These bonds pay interest on January 31 and July 31 each year. They mature on July 31, 20X8. Required 1. Journalize Goldman
P16-5A +Link Back to Chapter 15 (Effective-Interest Amortization of Discount). On December 31, 20X1, when the market interest rate is 10%, an investor purchases $400,000 of Yuma Inc., 9.5%, ten-year bonds at issuance. The cost of this bond investment was $387.578 and the investor expects to hold
P16-6A Suppose Gap, Inc., completed the following transactions: May 4 Sold clothing on account to a Mexican department store for $71,000. The exchange rate of the Mexican peso is $0.141, and the customer agrees to pay in dollars. 13 Purchased inventory on account from a Canadian company at a price
P16-18 During the second half of 20X2, the operations of Regency Systems generated excess cash, which the company invested in securities, as follows: July 3 Purchased 3.000 shares of common stock as a trading investment, paying $9.25 per share. Aug. 14 Sep. 15 Nov. 24 Received semiannual cash
P16-2B The beginning balance sheet of TalkNET On-line Incorporated included the following: Long-Term Equity-Method Investments............ $344,000 During the year, the company completed the following investment transactions: Mar. 2 5 Apr. 21 May 17 Oct. 8 17 Dec. 31 31 Purchased 2,000 shares of
P16-3B Steinway Company owns numerous investments in the stock of other companies. Assume that Steinway completed the following long-term investment transactions: 20X2 Feb. 12 July 1 Aug. 9 Oct. 16 Nov. 30 Dec. 31 Purchased 20.000 shares, which exceeds 20%, of the common stock of Growtech, Inc., at
P16-4B Financial institutions such as insurance companies hold large quantities of bond investments. Suppose Bastrop Insurance Co. purchases $400.000 of 9% bonds of Inwood Corporation for 103 on March 1, 20X1. These bonds pay interest on March 1 and September 1 each year. They mature on March 1.
P16-5B + Link Back to Chapter 15 (Effective-Interest Amortization of Discount). On December 31, 20X1, when the market interest is 8%. Chase Bank purchases $500,000 of Michelin Corp., 7.4%, six-year bonds at issuance. The cost of this long-term bond investment is $486.123, and Chase Bank expects to
P16-6B Manifesto Publishing Company completed the following transactions: May Sold inventory on account to Marconi Telegraph, an Italian public utility, for $19,000. The exchange rate of the Italian lira is $0.0007, and Marconi agrees to pay in dollars. 10 Purchased supplies on account from a
Case 1. Carla Allman is the manager of Stagg Corp., whose year end is December 31. The company made two investments during the first week of January 20X2. Both investments are to be held for the indefinite future. Information about the investments follows:a. Stagg purchased 30% of the common stock
Case 2. Caesar Saled inherited some investments, and he has received the annual reports of the companies. The financial statements of the companies are puzzling to Saled, and he asks you the following questions: 1. The companies label their financial statements as consolidated balance sheet,
Blaze Utilities owns 18% of the voting stock of Southwest Electric Power Company. The remainder of the Southwest stock is held by numerous investors with small holdings. Dee Falco, president of Blaze Utilities and a member of Southwest's board of directors. heavily influences Southwest Electric
Obtain the annual report of a company of your choosing. Answer the following questions about the company. Concentrate on the current year in the annual report you select. Required 1. Many companies refer to other companies in which they own equity-method invest- ments as affiliated companies. This
Pick a stock from the Wall Street Journal or other database or publication. Assume that your group purchases 1,000 shares of the stock as a short-term trading investment. Research the stock in Value Line, Moody's Investor Record, or other source to determine whether the company pays cash dividends
The Coca-Cola Company is the world's largest producer of soft-drink concentrates, syrups. and juices. Its soft-drink brands include Coke. Diet Coke. Cherry Coke. Sprite, and Nestea. 1. Go to http://www.cocacola.com and click on Investor Relations followed by the most recent annual report. Click on
P16-A1 Link Back to Chapter 4 (Debt Ratio). This problem demonstrates the dramatic effect that consolidation accounting can have on a company's ratios. Ford Motor Company (Ford) owns 100% of Ford Motor Credit Corporation (FMCC), its financing subsidiary. Ford's main operations consist of
P16-A2 Darnell Air Corp. paid $289,000 to acquire all the common stock of Royal Dutch, Inc., and Royal Dutch owes Darnell Air 581,000 on a note payable. Immediately after the pur- chase on June 30, 20X3. the two companies' balance sheets were as follows: C S Darnell Air Corp. Royal Dutch, Inc.
The balance sheet of Bradley Laser Corporation at December 31, 20X3, presented the following stockholders' equity: Paid-in capital: Common stock, $1 par, 250,000 shares authorized, 50,000 shares issued Paid-in capital in excess of par-common Total paid-in capital Retained earnings.... Total
Felicia Barrow, accountant for Lackland Aviation, Inc., was injured in a bicycle acci- dent. Another employee prepared the following income statement for the fiscal year ended June 30, 20X4: LACKLAND AVIATION Income Statement June 30, 20X4 Revenues and gains: Sales $733,000 Expenses and losses:
The capital structure of The Martin Rehabilitation Group at December 31, 20X2. included 5,000 shares of $2.50 preferred stock and 130.000 shares of common stock. Common shares outstanding during 20X3 were 130.000 January through February: 119.000 during March: 121,000 April through October; and
The following accounting issues have arisen at Cooltouch Cotton, Inc.: 1. Corporations sometimes purchase their own stock. When asked why they do so, Cooltouch management responds that the stock is undervalued. What advantage would Cooltouch gain by buying and selling its own undervalued stock? 2.
In 1993, International Business Machines (IBM) reported a record loss of $8,101,000,000 and also stopped paying cash dividends. Today IBM is thriving as the largest provider of com- puter hardware in the world. It produces PCs, notebooks, mainframes, servers, and peripher- als, along with software,
Name the two parties to a receivable/payable transaction. Which party has the receivable? Which has the payable? Which has the asset? The liability?
List the two main categories of receivables. State how receivables are classified for reporting on the balance sheet.
DE8-2 Return to the Accounts Receivable T-accounts on page 312.Suppose Nathan Forester is the accountant responsible for these records. What duty will a good internal control system withhold from Forester? Why?
DE8-4 The allowance method of accounting for uncollectible receivables uses two accounts in addition to Accounts Receivable. Identify the two accounts and indicate which financial state- ment reports each account. Which of these is a contra account? Make up reasonable amounts to show how to report
DE8-5 During its first year of operations, SBC Communications had net sales of $600.000. all on account. Industry experience suggests that SBC's bad debts will amount to 2% of net sales. At December 31, 20x3, SBC's accounts receivable total $90,000. The company uses the allowance method to account
DE8-6 Link Back to Chapter 5 (Recording Sales Transactions). This exercise continues the sit- uation of Daily Exercise 8-5, in which SBC Communications ended the year 20X3 with accounts receivable of $90,000 and an allowance for uncollectible accounts of $12.000. During 20X4. SBC Communications
DE8-7 Use the solution to Daily Exercise 8-6 to answer these questions about SBC Communications.1.Start with Accounts Receivable's beginning balance ($90.000), and then post to the Accounts Receivable T-account. How much do SBC's customers owe the company at December 31, 20X4?2.Start with the
DE8-8 Link Back to Chapter 5 (Recording Sales Transactions). Guardian Medical Group started 20X0 with accounts receivable of $120,000 and an allowance for uncollectible accounts of $6,000. The 20X0 credit sales were $800,000, and cash collections on account totaled $720,000. During 20X0. Guardian
DE8-9 Hot Button.com accounts include the following balances at December
The aging of accounts receivable yields these data: Amount receivable Age of Accounts Receivable 0-30 31-60 Days $70,000 X1% Days $20,000 2% 61-90 Days $10,000 Over 90 Days Total Receivables $4,000 $104,000 5% 50% Percent uncollectible. Journalize Hot Button's entry to adjust the allowance account
DE8-10 Buchwald. Inc.'s experience indicates that Buchwald will fail to collect 3% of net credit sales, which totaled $100,000 during the three-month period January through March of 20X3. During this period Buchwald wrote off $4.000 of accounts receivable as uncol- lectible. Record Buchwald's
DE 8-11 Masahiro Oguchi is an attorney in San Francisco. Oguchi uses the direct write-off method to account for his uncollectible receivables. At May 31.Oguchi's accounts receivable were $8.000. During June, he earned service revenue of $60,000 and collected $62.000 from clients on account. He also
DE 8-12 Gas stations do a large volume of business by customer credit cards and bankcards. Suppose the Shell station near Lenox Square in Atlanta, Georgia. had these transactions on a busy Saturday in July: American Express credit-card sales VISA bankcard sales. $6,000 8,000 Suppose American
DE 8-13 Examine the promissory note in Exhibit 8-5. page 322.Answer these questions: 1.When does interest on the note start running? When does the interest stop running?2.Who is the debtor? Who is the creditor?3.Which party to the note has a note receivable? Which party has a note payable? Which
DE 8-14 For each of the following notes receivable, compute the amount of interest revenue earned during 20X5. Use a 360-day year. Interest Principal Rate Interest Period Maturity Date Note 1 $ 10.000 9% 60 days 11/30/20X5 Note 2 50,000 10% 3 months 9/30/20X5 Note 3 100,000 8% 1 years 12/31/20X6
DE 8-15 Deutsche Bank lent $400,000 to Jean Nowlin on a 90-day, 8% note. Record the following transactions for Deutsche Bank (explanations are not required):a. Lending the money on June12.b. Collecting the principal and interest at maturity. Specify the date. For the computation of interest, use a
DE 8-16 Return to the promissory note in Exhibit 8-5, page 322.The accounting year of Continental Bank ends on December 31, 20X2. Journalize Continental Bank's (a) lending money on the note receivable at September 30, 20X2. (b) accrual of interest at December 31.20X2, and (c) collection of
DE 8-17 Using your answers to Daily Exercise 8-16 for Continental Bank, and carrying amounts to the nearest cent, show how the bank will reporta. Note receivable and interest receivable on the bank's classified balance sheet at December 31, 20X2.b. Whatever needs to be reported on the bank's income
DE 8-18 Examine the receivables for Intel, General Electric, and Oracle shown on page 325 and in Exhibit 8-6, page 326.Complete the table below to show the amounts (in millions of dollars) that each company will report on its balance sheet: Company Intel Corporation.... General Electric Oracle
DE 8-19 Link Back to Chapters 1-3 (Debit/Credit Balances: Income Statement). Sprint Corporation, the telecommunications company, included the following items in its financial statements (adapted, in millions): Unearned revenues. Allowance for doubtful accounts... Cash Accounts receivable. Accounts
DE 8-20 Vision Maker, a cable TV company reported the following items at February 28, 20X0 (amounts in millions, with last-year's 19X9 amounts also given as needed): Accounts payable. $369 Accounts receivable: Cash. 215 February 28, 20X0 $ 235 Allowance for uncollectible February 29, 19X9 160
DE 8-21 Link Back to Chapter 4 (Current Ratio and Debt Ratio) and Chapter 5 (Gross Profit Percentage and Inventory Turnover). Using the data in Daily Exercise 8-20, compute for Vision Maker the following ratios for 20X0:a. Current ratiob. Debt ratioc. Gross profit percentaged. Rate of inventory
E8-1 As a recent college graduate, you land your first job in the customer collections depart- ment of Sun Systems. Karla Bates, one of the owners, has asked you to propose a system to ensure that cash received by mail from customers is handled properly. Draft a short memo- randum identifying the
Link Back to Chapter 7 (Internal Control Over Cash Receipts). Suppose Carnation, the instant breakfast company is opening an office in Chicago. Timothy Mayborne, the office manager, is designing the internal control system. Mayborne proposes the following proce- dures for credit checks on new
E8-3 On September 30.Ageless Technology had a $28.000 debit balance in Accounts Receivable. During October, the company had sales of $187.000, which included $120,000 in credit sales. October collections were $91,000. Other data include September 30 credit balance in Allowance for Uncollectible
E8-4 Refer to Exercise 8-3. Required1.Record uncollectible-account expense for October using the direct write-off method.2.What amount of accounts receivable would Ageless report on its October 31 balance sheet under the direct write-off method? Does Ageless expect to collect the full amount?
E8-5 At December 31, 20X4, the accounts receivable balance of Quest Corp. is $300,000. The Allowance for Doubtful Accounts has a $3,910 credit balance. Accountants for Quest prepare the following aging schedule for its accounts receivable: Age of Accounts Total Balance 1-30 31-60 61-90 Over 90 Days
E8-6 At December 31, 20X2. Circuit Software has an accounts receivable balance of $137,000. Sales revenue for 20X2 is $950,000, including credit sales of $450,000. For each of the following situations, prepare the year-end adjusting entry to record uncollectible-account expense. Show how the
E8-7 On April 30, 20X7. First National Bank of Kansas City lent $1,000,000 to Marjorie Redwine on a two-year, 9% note. Required1.Compute the interest during 20X7, 20X8, and 20X9 for the Redwine note receivable.2.Which party has aa. Note receivable?b. Note payable?c. Interest revenue?d. Interest
E8-8 Record the following transactions in the journal of Glacial Enterprises, Inc.: Nov. 1 Loaned $50,000 cash to Victor Rashad on a one-year, 8% note. Dec. 3 Sold goods to Lendox Corp., receiving a 90-day, 11% note for $3.750. 16 Received a $4.000, six-month, 12% note on account from CFO Co. 31
Dividends on preferred stock may be stated as a percent or a dollar amount. What is the annual dividend on these preferred stocks: 4%. $100 par: $3.50, $20 par: and 6%. no-par with $50 stated value?
Suppose H. J. Heinz Company issued 1.000 shares of its 3.65%, $100 par preferred stock for $120. How much would this transaction increase the company's paid-in capital? How much would it increase Heinz's retained earnings? How much would it increase Heinz's annual cash dividend payments?
How does issuance of 1,000 shares of no-par stock for land and a building, together worth $150,000, affect paid-in capital? Total stockholders' equity?
Rank the following accounts in the order they would appear on the balance sheet: Common Stock, Preferred Stock. Retained Earnings. Dividends Payable. Also, give each account's balance sheet classification.
DE13-1 Suppose you are forming Spuds. Inc., which will feature 20 different toppings for baked potatoes. You need some outside money from other investors, and you have decided to organize the business as a corporation that will issue stock to raise the needed funds. Briefly discuss your most
DE13-2 Consider the authority structure in a corporation, as diagrammed in Exhibit 13-2. 1. Who is in charge of day-to-day operations? 2. Who manages the accounting? 3. Who has primary responsibility for the corporation's cash? 4. What group holds the ultimate power in a corporation? 5. Who is the
DE13-3 Examine the summarized balance sheet of Target Corporation in Exhibit 13-4 page 504. Suppose Target were a proprietorship owned by Lee Target. How would the Target proprietorship balance sheet differ from the one given in Exhibit 13-4? How would the pro- prietorship balance sheet be similar
DE13-4 Answer the following questions about the characteristics of a corporation's stock. 1. What privileges do preferred stockholders enjoy that common stockholders do not have? 2. Which class of stockholders would expect to reap greater benefits from a highly profitable corporation? Why? 3. Which
DE13-5 Study IHOP's July 31 stock issuance entry given on page 507, and answer these questions about the nature of the IHOP transaction. 1. IHOP received $32,000,000 for the issuance of its stock. The par value of the IHOP stock was only $32,000. Was the excess amount of $31,968,000 a profit to
DE13-6 The Coca-Cola Company reported the following on its balance sheet at December 31. 1999 (adapted, amounts in millions, except for par value): Common stock, $0.25 par value Authorized: 5,600 shares Issued: 3.466 shares. $ 867 Paid-in capital in excess of par. Retained earnings... 2,584 20.773
DE13-7 At December 31, 1999, The Coca-Cola Company reported the following on its comparative balance sheet, which included 1998 amounts for comparison (adapted, with all amounts except par value in millions): Common stock $0.25 par value Authorized: 5,600 shares December 31, 1999 1998 Issued: 3,466
DE13-8 Brunnheimer Corporation has three classes of stock: Common, $1 par: Preferred Class A. $10 par; and Preferred Class B. no-par. Journalize Brunnheimer's issuance ofa. 1,000 shares of common stock for $30 per shareb. 1,000 shares of Class A preferred stock for a total of $32.000c. 1,000 shares
DE13-9 This exercise shows the similarity and the difference between two ways to acquire plant assets. Case A-Issue stock and buy the assets in separate transactions: Avisa Machines, Inc., issued 10,000 shares of its $10 par common stock for cash of $700.000. In a separate transaction. Avisa
DE13-10 The financial statements of Arthur Binding. Inc.. reported the following accounts (adapted, in millions except for par value): Paid-in capital in excess of par...... $ 17.3 Cost of goods sold.. Common stock $0.01 par. 40.2 shares issued Cash. Long-term debt. Net sales. Accounts payable
DE13-11 +Link Back to Chapter 1 (Accounting Equation, Income Statement). Use the Arthur Binding data in Daily Exercise 13-10 to compute Arthur'sa. Net incomeb. Total liabilitiesc. Total assets
DE13-12 Varlux Corporation began operations in 20X3 with a charter that authorized the company to issue 10,000 shares of 5%, $8 par preferred stock and 100,000 shares of no-par common stock. During 20X3 through 20X8, Varlux issued 3.000 shares of the preferred stock for $25 per share and 50,000
DE13-13 Colombia Coffee Company earned net income of $85,000 during the year ended December 31, 20X3. On December 15, Colombia declared the annual cash dividend on its 6% preferred stock (10,000 shares with total par value of $100,000) and a $0.50 per share cash dividend on its common stock (50,000
DE13-14 Refer to the stockholders' equity of MedTech.com Corporation in Exhibit 13-8. page 512. Answer these questions about MedTech.com's dividends. 1. How much in dividends must MedTech.com declare each year before the common stock- holders receive cash dividends for the year? 2. Suppose
DE13-15 Indicate whether each of the following characteristics applies to preferred stock. common stock, or both.a. Cumulativeb. Callablec. Liquidation valued. Stated dividende. Voting rightsf. Priority to receive assets in the event of liquidation
DE13-16 Refer to the stockholders' equity of MedTech.com Corporation in Exhibit 13-8, page 512. MedTech.com's preferred stock has a liquidation value of $125 per share, and MedTech.com has not declared preferred dividends for three years (including the current year). Compute the book value of
DE13-17 Answer the following questions about various stock values. 1. Suppose you are an investor considering the purchase of Intel common stock as an investment. You have called your stockbroker to inquire about the stock. Which stock value are you most concerned about and why? 2. How is the book
DE13-18 Answer these questions about two rates of return. 1. Give the formula for computing (a) rate of return on common stockholders' equity and (b) rate of return on total assets. 2. Why are preferred dividends subtracted from net income to compute return on common stockholders' equity? 3. Why is
DE13-19 The Coca-Cola Company has earned solid rates of return on its assets and its stockholders' equity in recent years. Coca-Cola's 1999 financial statements reported the fol- lowing items with 1998 figures given for comparison (adapted, in millions): Balance sheet 1999 1998 Total current
DE13-20 Harry's Hot Dogs had income before income tax of $120,000 and taxable income of $90,000 for 20X1, the company's first year of operations. The income tax rate is 40%. 1. Make the entry to record Harry's income taxes for 20X1. 2. Show what Harry's Hot Dogs will report on its 20X1 income
E13-1 Dena Kelly and Tiffany Lewis are opening a limousine service to be named D & T Limo. They need outside capital, so they plan to organize the business as a corporation. They come to you for advice. Write a memorandum informing them of the steps in forming a corporation. Identify specific
E13-2 New England Systems completed the following stock issuance transactions: April 19 May 3 11 Issued 1,000 shares of $1.50 par common stock for cash of $10.50 per share. Sold 300 shares of $4.50. no-par Class A preferred stock for $12.000 cash. Received inventory valued at $23,000 and equipment
E13-3 The charter for Sartis Rugs. Inc.. authorizes the company to issue 100.000 shares of $3. no-par preferred stock and 500.000 shares of common stock with $1 par value. During its start-up phase. Sartis completed the following transactions: Aug. 6 12 14 31 Required Issued 500 shares of common
E13-4 The balance sheet of Levitz Corporation, as adapted, reported the following stock- holders equity. Levitz has two separate classes of preferred stock. labeled Series A and Series B. Stockholders' Equity Preferred stock. $2 par. authorized 4.000.000 shares (Note 7) S Thousands Series A $ 100
E13-5 Modern Furniture Co., located in Boston, Massachusetts, imports European furniture and Oriental rugs. The corporation issued 5,000 shares of no-par common stock for $8 per share. Record issuance of the stock if the stock (a) is true no-par stock and (b) has stated value of $2 per share.
E13-6 The charter of Laurelake Corporation authorizes the issuance of 5,000 shares of Class A preferred stock. 1.000 shares of Class B preferred stock, and 10.000 shares of com- mon stock. During a two-month period. Laurelake completed these stock-issuance transactions: Nov. 23 Dec. 2 12 Issued
E13-7 ReadyTech Co. recently organized. The company issued common stock to an attorney in exchange for his patent with a market value of $40,000. In addition. Ready Tech received cash both for 2,000 shares of its $50 par preferred stock at $80 per share and for 26,000 shares of its no-par common
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