Chapter 11 – Stockholder’s equity
Acct 284 SI

  1. Jacks company has 500,000 authorized common stock with a par value of $0.50 each. The company has issued common stock of 200,000 shares and treasury stock of 5,000 shares. What is the amount of shares outstanding?
  1. Determine the total amount of paid-in-capital for common stock if the company issued 200,000 common stock with a par value of $2, for $800,000.
  1. 5,000 shares of common stock with a par value of $1 is bought back for $25,0000. What is the entry to record this transaction? Assume that the shares bought back is later sold to the market for $30,000. Record the transaction for this as well.
  1. The par value of 50,000 issued and outstanding stock is $1.20. Assume a 3-for-1 stock split, what is the par value of the stock now? If a 20% stock dividend is issued instead of the stock split, what would be the new par value of the stock? List the transaction for the stock dividend.
  1. A company has outstanding 200,000shares of $2 par common stock and 50,000 shares of $4 par preferred stock. The preferred stock has an 8% dividend rate. The company declares $300,000 in total dividends for the year. If the company did not pay dividends the last year, determine the amount of dividends the common stock holders would receive.
  1. A company started its operations in 2010. During the year, net income was $50,000 and $10,000 of cash dividends were paid out to investors. The company issued 40,000 shares of common stock with a par value of $5 for $400,000 and 5,000 shares of preferred stock with par value of $10 for $100,000. Determine the total amount of stockholder’s equity for the company.
  1. What if in 2010, the company also bought back 1,000 shares of common stock for $5,000 and later reissued them for $10,000. What would the new total stockholder’s equity be?