help with homework assignment
ILESERBrief Exercise 15-4
Ravonette Corporation issued 375 shares of $15 par value common stock and 110 shares of $48 par value preferred stock for a lump sum of $20,025. The common stock has a market price of $30 per share, and the preferred stock has a market price of $100 per share. Prepare the journal entry to record the issuance. (Round answers to 0 decimal places, e.g., 1520. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation |
Debit |
Credit |
Cash |
20025 |
|
Preferred Stock |
|
|
Paid-in Capital in Excess of Par - Preferred Stock |
|
|
Common Stock |
|
|
Paid-in Capital in Excess of Par - Common Stock |
|
|
Exercise 15-12
Lotoya Davis Corporation has 10.12 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 62 cents per share cash dividend to stockholders of record as of June 14, payable June 30. (a) Prepare the journal entry for each of the dates above assuming the dividend represents a distribution of earnings. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date |
Account Titles and Explanation |
Debit |
Credit |
6/1 |
|
|
|
|
|
|
|
6/14 |
|
|
|
|
|
|
|
6/30 |
|
|
|
|
|
|
|
(b) How would the entry differ if the dividend were a liquidating dividend? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation |
Debit |
Credit |
|
|
|
|
|
|
Warning
Exercise 15-19Shown below is the liabilities and stockholders’ equity section of the balance sheet for Jana Kingston Company and Mary Ann Benson Company. Each has assets totaling $4,418,100.
For the year, each company has earned the same income before interest and taxes.
At year end, the market price of Kingston’s stock was $101 per share, and Benson’s was $63.50. Assume balance sheet amounts are representative for the entire year. (a) Calculate the return on total assets? (Round answers to 2 decimal places, e.g. 16.85%.)
Which company is more profitable in terms of return on total assets? (b) Calculate the return on common stock equity? (Round answers to 2 decimal places, e.g. 16.85%.)
Which company is more profitable in terms of return on common stock equity? (c) Calculate the Net income per share. (Round answers to 2 decimal places, e.g. $6.85.)
Which company has the greater net income per share of stock? Neither company issued or reacquired shares during the year. (d1) From the point of view of net income, is it advantageous to the stockholders of Jana Kingston Co. to have the long-term debt outstanding? (e) What is the book value per share for each company? (Round answers to 2 decimal places, e.g. $6.85.)
|
|
Problem 15-3 Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2014, the following accounts were included in stockholders’ equity.
The following transactions affected stockholders’ equity during 2015.
Prepare the stockholders’ equity section for Hatch Company at December 31, 2015. (Enter account name only and do not provide descriptive information.)
Warning
|
Exercise 15-4
Faith Evans Corporation is a regional company which is an SEC registrant. The corporation’s securities are thinly traded on NASDAQ. Faith Evans Corp. has issued 10,370 units. Each unit consists of a $519 par, 12% subordinated debenture and 10 shares of $5 par common stock. The investment banker has retained 415 units as the underwriting fee. The other 9,955 units were sold to outside investors for cash at $913 per unit. Prior to this sale, the 2-week ask price of common stock was $41 per share. Twelve percent is a reasonable market yield for the debentures, and therefore the par value of the bonds is equal to the fair value. (a) Prepare the journal entry to record Evans’ transaction, under the following conditions. (Round answers to 0 decimal places, e.g. $38,487. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
(1) |
|
Employing the incremental method. |
(2) |
|
Employing the proportional method, assuming the recent price quote on the common stock reflects fair value. |
No. |
Account Titles and Explanation |
Debit |
Credit |
1. |
Unamortized Bond Issue Costs |
|
|
|
Cash |
|
|
|
Bonds Payable |
|
|
|
Common Stock |
|
|
|
Paid-in Capital in Excess of Par - Preferred Stock |
|
|
2. |
Cash |
|
|
|
Unamortized Bond Issue Costs |
|
|
|
Discount on Bonds Payable |
|
|
|
Bonds Payable |
|
|
|
Common Stock |
|
|
|
Paid-in Capital in Excess of Par - Common Stock |
|
|
Warning
|