ACC 291 Week 4 - Individual WileyPLUS Assignment Week Four - Exercise Do It! 11-1 , E11-15, E11-16 Problem P11-6A And P11-8A

ACC 291 Week 4 - Individual WileyPLUS Assignment Week Four - Exercise Do It! 11-1 ,  E11-15, E11-16 Problem P11-6A And P11-8A
Exercise Do It! 11-1
Indicate whether each of the following statements is true or false.
Exercise E11-15
On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.

Exercise E11-16
Before preparing financial statements for the current year, the chief accountant for Springer Company discovered the following errors in the accounts.
1.    The declaration and payment of $50,000 cash dividend was recorded as a debit to Interest Expense $50,000 and a credit to Cash $50,000.
2.    A 10% stock dividend (1,000 shares) was declared on the $10 par value stock when the market value per share was $16. The only entry made was: Retained Earnings (Dr.) $10,000 and Dividend Payable (Cr.) $10,000. The shares have not been issued.
3.    A 4-for-1 stock split involving the issue of 400,000 shares of $5 par value common stock for 100,000 shares of $20 par value common stock was recorded as a debit to Retained Earnings $2,000,000 and a credit to Common Stock $2,000,000.
Prepare the correcting entries at December 31. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.)
Date    Account/Description    Debit    Credit
1. Dec. 31     
 

     
     

2. Dec. 31     
 

     
 

     
     

     
     

3. Dec. 31     
 

     
     

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Question 4
 
Arnold Corporation has been authorized to issue 40,000 shares of $100 par value, 8%, noncumulative preferred stock and 2,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2011, the ledger contained the following balances pertaining to stockholders' equity.

Preferred Stock    $240,000
Paid-in Capital in Excess of Par Value-Preferred    56,000
Common Stock    2,000,000
Paid-in Capital in Excess of Stated Value-Common    5,700,000
Treasury Stock-Common (1,000 shares)    22,000
Paid-in Capital from Treasury Stock     3,000
Retained Earnings    560,000
The preferred stock was issued for land having a fair market value of $296,000. All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $22. In December, 500 shares of treasury stock were sold for $28 per share. No dividends were declared in 2011.
here are all questions and answers in the file.all answers are certified as correct