Accounting II homework Help!!!!

mod_1_acct_2_hwk_assignments.xlsx

Beyond the Numbers BTN 13 2

1)
	Apple	Google	Apple	Google
	"Millions"	"Millions"	$	$
Equity applicable to Common Shares	123,549.00	87,309.00
Common Shares Outstanding	899.21	279.33
Book value per common share			137.40	312.57
2)
Net Income	37,037.00	12,920.00
Weighted Average Common Shares Outstanding	925.33	273.52
Basic EPS			40.03	47.24
3)
Cash Dividends declared per common share			11.40	- 0
Market value(price)per share			477.25	560.92
Dividend Yield			0.02	- 0
Both companies seem to be growth stock companies as they pay relatively lo or no dividends though they have la rge capital gainsin a bid to channel the capital gain towards growth of the companies
4)
Market value(price)per share			477.25	560.92
Eanings per share			40.03	47.24
Price earnings ratio			11.92	11.87
The price earnings ratio for both companies are almost the same meaning that investors will invest $12(round off) in the company to get $1 of earnings

1)
a)
The company issued 10,000 common shares for $300, 000 cash
b)
Issued 5,000 common shares to settle organizational expenses worth $150,000
c)
Issued 1,000 common shares and notes for cash, a building and a receivable
d)
The company issued 3,000 common shares for $100, 000 cash
2)
Common Shares Outstanding
a)
The company issued 10,000 common shares for $300, 000 cash	10,000
b)
Issued 5,000 common shares to settle organizational expenses worth $150,000	5,000
c)
Issued 2,000 common shares and notes for cash, a building and a receivable	2,000
d)
The company issued 3,000 common shares for $100, 000 cash	3,000
	20,000
3)
Common Shares Outstanding	20,000
Par value	25
Minimum Legal Capital	500,000.00
4)
Minimum Legal Capital(par value)	500,000
	50,000
	25,000
	30,000
	45,000
Paid-in capital in excess of par value(Total for the four transactions)	150,000
Total Paid-In capital	650,000
5)
Paid-In capital plus retained earnings	695,000
Common Shares Outstanding	19,000
Book value per common share	36.5789473684

1)
	Description	Dr($)	Cr($)	Workings
a)	Cash	86,000.00
	Common Shares		86,000.00
b)	Cash	86,000.00
	Preferred Shares,$ 100 par value, 7%		86,000.00
c)	Cash	86,000.00
	Note Payable, 7% Note payable		86,000.00
2)
a)	Common stock
	Pros	Cons
	Common stock holder are usually the last to be paid	Cicely will have a say in the running of the business as she is also an owner
	No obligation to pay dividends
b)	Preferred Stock
	Pros	Cons
	No charge to assets as security	Paid dividends before the owner
	No obligation to pay dividends	More expensive than the debt as debts' interest rate is tax deductible
	Not gain ownership of the business
c)	Debt Financing
	Pros	Cons
	Tax advantage as interest is a deductible expense	Regular payments of principal and interest
	Not dilute ownership	A penalty for late or non-payment
	No claim on future earnings after payment
3)
	Accept to issue common shares to Cicely, the sister. This is because common stock doesn't have a lot of obligations,i.e., there is no requirement to make any payments.The ownership by Cecily is 40% meaning that Santana still has control of her business as she is the majority shareholder at 60%.

Date	Description	Dr($)	Cr($)	Workings
Jan. 10	Treasury Stock at $12	480,000.00		($12 x 40,000)
	Cash		480,000.00
Mar. 2	Retained earnings	240,000.00		$1.50 x (200,000-40,000)
	Dividends payable		240,000.00
Mar.31	Dividends payable	240,000.00
	Cash		240,000.00
Nov.11	Cash	312,000.00		$13 x 24,000
	Treasury Stock at $12		288,000.00	$12 x 24,000
	Paid in Excess of treasury shares		24,000.00
Nov. 25	Cash	152,000.00		$9.50 x 16,000
	Paid in Excess of treasury shares(loss)	24,000.00
	Reatined earninngs(exceeds credit balance)	16,000.00
	Treasury Stock at $12		192,000.00	$12 x 16,000
Dec. 1	Retained earnings	500,000.00		$2.50 x (160,000 +24,000 +16,000)
	Dividends payable		500,000.00
Dec.31	Income Summary Account	1,072,000.00
	Retained earnings		1,072,000.00
2)
	Statement of Retained Earnings
		$
	Retained Earnings (As at 1.1.2016)	2,160,000.00
	Dividends payable	(240,000.00)
	Treasury stock	(16,000.00)
	Dividends payable	(500,000.00)
	Income Summary Account	1,072,000.00
	Retained Earnins (As at 31.12.2016)	2,476,000.00
3)
	Stockholders' Equity
	Paid-In Capital
	Common Shares- $1 per value , 320, 000 shares authorized,
	200,000 shares isued and outstanding	200,000.00
	Paid-in Capital in Excess of par value, common stock	1,400,000.00
	Paid in Capital from Treasury Stock	16,000.00
	Retained Earnings	2,476,000.00
	Total Stockhlders' equity	4,092,000.00