I have two hours to do it.

BCO123 ACCOUNTING I I Task brief & rubrics Task: Timed Exercise 2

• This is an assignment to be done individually. • You must answer all the questions in the proposed problem. • Submission file format: Word document with all the answers, clearly identifying all steps, results, journals, ledger accounts and including comments

when requested.

Submission: Week 10

Weight: This task is a 15% of your total grade for this subject. This task assesses the following learning outcomes:

• Stockholders

Exercise 1

The Melody Corporation will authorize to issue a maximum of 3,000,000 shares of 1,5 EUR par value common stock. During firs year of operation, Melody issued 1,200,000 shares at 12 EUR per share. It later acquired 65,000 of these shares as treasury stock for 24 EUR per share. Based on the above information, answer the following questions:

• How many shares were issued? (5 points) • How many shares are outstanding? (5 points) • What is the balance of the Common Stock account? (5 points) • What is the balance of the Treasury Stock account? (5 points)

Exercise 2 :

Peter’s Mercury’s on March 18 stock holder’s equity contained the following information.

Stockholders' equity 6% preferred stock, $100 par, 6,000,000 shares issued $600,000,000 Common stock, $2 par, 50,000,000 shares issued $50,000,000 Additional paid-in capital, common stock $200,000,000 Total $850,000,000 Retained earnings $250,000,000 Total stockholders' equity $1,100,000,000

Prepare journal entries to record the corporation’s following transactions.

• April 1: 100,000 additional shares of 6%, $100 par preferred stock issued at a price of $102 per share. (10 points) • April 15: Cash dividends were declared and will be paid in a few weeks. Dividends per common share were $.25.(10 points) • May 1: process the dividends payment (10 points)

Exercise 3

On May 1, 2020, Miren Corporation had 35,000 shares of $1 par value common stock issued and outstanding.

During the year, the following transactions occurred: process the journal entries.

• May 12 Issued 80,000 shares of common stock for $575,000 (10 points) • June 1 Declared a cash dividend of $2 per share to stockholders of record on June 15 (10 points) • June 25 Paid the $2 cash dividend (10 points) • Nov 1 Purchased 6,000 shares of common stock for the treasury for $15 per share (10 points) • Dec 15 Declared a cash dividend on outstanding shares of $2.25 per share to stockholders of record on December 31 (10 points)

Rubrics Descriptor 9-10 The student demonstrates an excellent understanding of the

concepts. 8-8.9 The student demonstrates a good understanding of the

concepts. 7-7.9 The student demonstrates a fair understanding of the

concepts. 6-6.9 The student demonstrates some, but insufficient

understanding of the concepts. 3-5.9 The student demonstrates insufficient understanding of the

concepts. They may mention some relevant ideas or concepts, although it is clear that the relationship between them is not understood by the student.

1-2.9 The student demonstrates insufficient understanding of the concepts and does not mention any relevant ideas or concepts.

0 The student leaves the question blank or cheats. 95% of the grade based on the approach, calculations and comments, and 5% based on the presentation and look & field of the spreadsheet. Points are at the end of each question