accounting do in 7 hours

ACC 202

Chapter 10 Homework

1. Environmental Designs issues 10,500 shares of its $2 par value common stock at $25 per share. (1) Record the issuance of the stock. (2) Record the issuance of the stock assuming it is no-par value stock. 

2. Indicate whether each of the following transactions increases (+), decreases (-), or has no effect (NE) on total assets, total liabilities, and total stockholders’ equity.

Total

Total Total Stockholders’

Transactions Assets Liabilities Equity

Issue common stock

Issue preferred stock

Purchase treasury stock

Sale of treasury stock

Declare cash dividend

Pay cash dividend

15% stock dividend

2-for-1 stock split

3. Lisa's Designs has two classes of stock authorized: 6%, $10 par preferred and $1 par value common. On December 31, 2016 it had 500,000 shares of common stock outstanding and 5,000 shares of preferred stock outstanding. The following transactions affect stockholders' equity during 2017:  January 1 Issue 100,000 shares of common stock for $35 per share.

February 6 Issue 1,000 shares of preferred stock for $21 per share.

October 10 Repurchase 10,000 shares of its own common stock for $48 per share.

November 12 Reissue 5,000 shares of treasury stock at $55 per share.

December 5 Reissue 3,000 shares of treasury stock at $45 per share.

December 31 Declared a cash dividend of $.25 per share of common stock. Dividends were last paid on December 31, 2014. Hint: Don’t forget about preferred stock dividends.

  Record each of these transactions. 

 

4. Bostick Inc. has 75,000 shares of $2.00 par value common stock outstanding and declares and distributes an 15% stock dividend. The market value of the stock was $65. Journalize the declaration and distribution of the stock dividend.