Accounting Principles - Exercises

Part A On June 1,2013 AEC Company paid $30,000 for 1,000 common shares and later that same year received a 10 percent stock dividend on Sep.1,2010. Required: Show all calculations 1. Compute the number of new shares 2. Compute the new cost per share after stock dividend 3. Compute the gain or loss on sale of 500 common shares for $15,000 before the year end. Part B AEC Corp. purchased Euro$10,000 of Spain maple syrup to sell in Canada. At the time of the June 1 purchase, the exchange rate was 1.5. When the payment was made on July 2, the exchange rate was 1.6. Journalize both transactions (June 1 and July 2)