Syed Abbas Hassan (48677)

ASSIGNMENT

QUEST 1: (DOUBLE PRICE)

Cost of goods sold...................................................................................121000

Paid in capital in excess of par................................................................180000

Common stock $6 par value, 120000 shares issued...............................360000

Cash…......................................................................................................45000

Acc payable- 13000

Ret. Earning 36000

Unearned revenue- 10600

Total assets - --------------------------------------------------------------------------

Long term notes payable- -15400

ANS1:

REQUIRED 1:

Common stock , $ 6 par value 120000 shares issued--------------------------------360000

Paid in capital excess of par--- 180000

Total paid in capital--- 540000

Retained earning- - 36000 Total

stockholders equity-- 576000

REQUIRED 2:

Average selling price of common stock per share was 540000/120000 = 4.5 price of each common share.

QUESTION 1: (HALF PRICE)

Cost of goods sold---- 30250

Paid in capital in excess of par-------------------------------------------------45000

Common stock $1.5 par value , 30000 shares issued--------------------90000

Cash- 11250

Acc payable-----------------------------------------------------------------------3250

Retained earning----------------------------------------------------------------9000

Unearned revenue--------------------------------------------------------------2650

Total assets ---

Long term notes payable- 3850

REQUIRED 1:

Common stock 1.5 par value , 30000 shares issued----------------------90000

Paid in capital in excess of par------------------------------------------------45000

Total paid in capital--- - 135000

Retained earnings -- 9000

Total stockholders equity--- 144000

REQUIRED 2:

The selling price of each share 135000/30000 = 4.5 each price of common share.

QUEST 2:

(DOUBLE)
 DATE DETAILS DR CR

2012 Retained earnings 133000

Dec15 Dividend payable preferred 23000

Dividend payable common 110 000

(declare a cash dividend)

2013 23000
Dividend payable preferred
Jan 4 110000
Dividend payable common
133000
cash

(HALF)
DATE DETAILS DR CR

2012 Retained earnings 8312.5

DEC 15 Dividend payable preferred 1437.5

Dividend payable common 6875

(declare a cash dividend)

2013 1437.5
Dividend payable preferred
Jan4 6875
Dividend payable common
8312.5
Cash

(paid the cash dividend)

ANS 3:
(DOUBLE)

Paid in capital

Prefer stock,10%,$30 par ,14000 shares authorizes,--------------------------------------165000 11000

shares issued.

Common stock ,$0.6 par ,2400000 shares authorized and issued---------------------720000

Paid in capital in excess of par- common-----------------------------------------------------800,000

Total paid in capital--- -1685000

Retained earnings-- - 520000

Total stockholders equity--- -2205000

REQUIRED 1:

Precious metals preferred stock is comulative because it is not specifically designated as noncomulative.

REQUIRED 2:

2010 DIVIDEND OF $50000

PREFERRED DIVIDEND 16500

Common dividend 33500

Total dividend 50000

REQUIRED 3:
 2012 Dividend of $70000.

Preferred dividend 49500

Common dividend 20500

Total dividend 70000

(HALF):

Paid in capital:

Preferred stock,2.5%,7.5 par value,3500 shares authorizes----------------------------------------41250

and 2750 shares issued.

Common stock 0.15 par,600000 shares authorized and issued------------------------------------180000

Paid in capital excess in excess of par –common-----------------------------------------------------200000

Total paid in capital--- 421250

Retained earnings-- 130000

Total stockholders equity- - 551250

REQUIRED 1:

Precious metals preferred stock is cumulative because it is not specially designated as noncumulative.

REQUIRED 2:
 2012 DIVIDEND OF $12500

Preferred dividend 1031.25

Common dividend 11468.75

Total dividend 12500

REQUIRED 3:
2013 DIVIDEND OF $17500

Preferred dividend 3093.75

Common dividend 14406.25

Total dividend 17500