TUGAS MINGGU 7

1. Selected transactions completed by Breezeway Construction during the current fiscal year are as
follows:

February 3 Split the common stock 2-for-1 and reduced the par from $40 to
$20 per share. After the split, there were 250,000 common shares
outstanding.
April 10 Declared semiannual dividends of $1.50 on 18,000 shares of preferred
stock and $0.08 on the common stock to stockholders of record on
May 10, payable on June 9.
June 9 Paid the cash dividends.
October 10 Declared semiannual dividends of $1.50 on the preferred stock and
$0.04 on the common stock (before the stock dividend). In addition, a
2% common stock dividend was declared on the common stock
outstanding. The fair market value of the common stock is estimated
at $36.
December 9 Paid the cash dividends and issued the certificates for the common
stock dividend.

Required: Journalize the transactions.

2. Prepare entries to record the following selected transactions completed during the current fiscal
year:

Feb. 1 The board of directors declared a stock split which reduced the
par of common shares from $100 to $20. This action increased
the number of outstanding shares to 500,000.

11 Purchased 25,000 shares of the company's own stock at $44, recording the treasury
stock at cost.

May 1 Declared a dividend of $2.50 per share on the outstanding shares of common stock.

15 Paid the dividend declared on May 1.

Oct. 19 Declared a 2% stock dividend on the common stock

outstanding (the fair market value of the stock to be issued is
$55).

Nov. 12 Issued the certificates for the common stock dividend declared on October 19.

3. A corporation, which had 18,000 shares of common stock outstanding, declared a 3-for-1 stock
split.
(a) What will be the number of shares outstanding after the split?
(b) If the common stock had a market price of $240 per share
before the stock split, what would be an approximate market
price per share after the split?
(c) Journalize the entry to record the stock split.
4. The Torre Company has the following stockholders' equity account balances in stockholders
equity on December 31.

Common Stock – $5 par, 60,000 shared issued $300,000

PaidIn Capital in Excess of Par—Common Stock 600,000
Preferred stock – $100 par, 5,000 shares issued 500,000
PaidIn Capital in Excess of Par—Preferred 100,000
Retained Earnings 200,000
Treasury Stock (cost – $12 per share) 60,000

Answer the following questions:

a. How many shares of treasury stock are owned?

b. What was the average market price per share at which common stock was issued?

c. What was the average market price per share at which preferred stock was issued?

d. What is the total value of the paid-in capital portion of stockholders' equity?

e. What is the total value of stockholders' equity?

f. How many shares of common stock are outstanding?

g. If net income for the year was $75,000 and a preferred stock
dividend of $20,000 was paid, what was the beginning value of
retained earnings? How much is earnings per share for the year?