Description
ACCT 312 Week 3 Homework Solutions
Exercise 18-5: During the first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders equity. The articles of incorporation authorized the issue of 8 million common shares, $1 per share, and 1 million preferred shares, $50 per share. Prepare the appropriate journal entries to record each transaction.
Exercise 18-11: Bonner Communications articles of incorporation authorized the issuance of 130 million common shares. The transactions described below effected changes in Borner’s outstanding shares. Prior to the transactions, Borner’s shareholders’ equity included the following:
Shareholder’s Equity Millions
Common Stock, 100 Million shares at $1 par =100
Paid-in capital – excess of Par =300
Retained earnings =210
Exercise 18-13: In 2013, Western Transport Company entered into the treasury stock transactions described below. In 2011, Western Transport had issued 140 million shares of its $1 par common stock at $17 per share.
Exercise 18-15: On two previous occasions, the management of Dennison and Company, Inc., repurchased some of its common shares. Between buyback transactions, the corporation issued common shares under its management incentive plan. Shown below is shareholders’ equity following these share transaction, as reported by two different methods of accounting for reacquired shares.
Exercise 18-19: The shareholders’ equity of CoreTechnologies Company on June 30, 2012 included the following:
Common stock, $1 par, authorized, 8 million shares; issued and outstanding, 3 million shares = $3,000,000
Paid-in capital – excess of par = $12,000,000
Retained earnings = $14,000,000
On April 1, 2013, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies common stock was $30 on April 1, 2013 and $40 on June 1, 2013.
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ACCT 312 Week 3 Homework
