Unit 5 Assignment 2

unit5_p11-2_cp11-2_cp13-2.xlsx

P11-2

P11-2 Preparing the Stockholders Equity Section of the Balance Sheet LO11-3, 11-7
Witt Corporation received its charter during January 2014. The charter authorized the following capital stock:
	Preferred stock: 10 percent, par $10, authorized 21,000 shares
	Common stock: par $8, authorized 50,000 shares.
During 2014, the following transactions occurred in the order given:
a.	Issued a total of 40,000 shares of the common stock to the four organizers at $12 per share.
b.	Sold 5,500 shares of the preferred stock at $16 per share.
c.	Sold 3,000 shares of the common stock at $15 per share and 1,000 shares of the preferred stock at $26.
d.	Net income for the year was $96,000.
Required:
	Prepare the Stockholders’ Equity section of the balance sheet at December 31, 2014.
	Possible input areas are shaded.
	WITT CORPORATION
	Balance Sheet (Partial)
	At December 31, 2014
	Stockholders’ equity:
	Contributed capital:
	Total contributed capital	-
	Total stockholders’ equity		$ -

P11-2 Preparing the Stockholders Equity Section of the Balance Sheet LO11-3, 11-7
Witt Corporation received its charter during January 2014. The charter authorized the following capital stock:
	Preferred stock: 10 percent, par $10, authorized 21,000 shares
	Common stock: par $8, authorized 50,000 shares.
During 2014, the following transactions occurred in the order given:
a.	Issued a total of 40,000 shares of the common stock to the four organizers at $12 per share.
b.	Sold 5,500 shares of the preferred stock at $16 per share.
c.	Sold 3,000 shares of the common stock at $15 per share and 1,000 shares of the preferred stock at $26.
d.	Net income for the year was $96,000.
Required:
	Prepare the Stockholders’ Equity section of the balance sheet at December 31, 2014.
	Possible input areas are shaded.
	WITT CORPORATION
	Balance Sheet (Partial)
	At December 31, 2014
	Stockholders’ equity:
	Contributed capital:
	Total contributed capital	639,000
	Total stockholders’ equity

CP11-2	Finding Financial Information		LO11-1, 11-3, 11-4, 11-6
	Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book.
	Required:
	1. How many shares of common stock are authorized at the end of the current year? How many shares are issued and
	outstanding at the end of the current year?
		shares authorized
		shares issued and outstanding
	2. Did the company pay dividends during the most recent reporting year? If so, what was the total amount of dividends paid
	and how much were they per share?
	3. Does the company have any treasury stock? If so, how much?
	4. Has the company issued a stock dividend or a stock split over the past three reporting years? If so, describe.
	5. Does the company's common stock have a par value? If it does, what is the par value?

CP11-2	Finding Financial Information		LO11-1, 11-3, 11-4, 11-6
	Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book.
	Required:
	1. How many shares of common stock are authorized at the end of the current year? How many shares are issued and
	outstanding at the end of the current year?
		shares authorized
		shares issued and outstanding
	2. Did the company pay dividends during the most recent reporting year? If so, what was the total amount of dividends paid
	and how much were they per share?
	3. Does the company have any treasury stock? If so, how much?
	The company does not have any Treasury Stock.
	4. Has the company issued a stock dividend or a stock split over the past three reporting years? If so, describe.
	5. Does the company's common stock have a par value? If it does, what is the par value?

CP13-2	Analyzing Financial Statements		LO13-4, 13-5, 13-6, 13-7
	Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book.
	Compute the following ratios for the most recent reporting year for which you have available information:
	Return on equity:
		=
	Earnings per share:
	As reported:
	Profit margin:
		=
	Current ratio:
		=
	Inventory turnover:
		=
	Debt/Equity:
		=
	Price/earnings:
	(Assume the stock price is $35.)
		=
	Dividend yield:

CP13-2	Analyzing Financial Statements			LO13-4, 13-5, 13-6, 13-7
	Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book.
	Compute the following ratios for the most recent reporting year for which you have available information:
	Return on equity:
		=
	Earnings per share:
	As reported:
	Profit margin:
		=
	Current ratio:
		=
	Inventory turnover:
		=
	Debt/Equity:
		=
	Price/earnings:
	(Assume the stock price is $35.)
		=	29.2
	Dividend yield:

List1

Accounts payable

Available for sale securities

Bonds payable

Capital in excess of par, common stock

Capital in excess of par, preferred

Cash

Common stock

Discount on bonds payable

Dividends payable

Paid-in capital, stock options

Preferred stock

Premium on bonds payable

Retained earnings

Trading securities

Treasury stock