Acc 291 week 4 Wiley Plus E11-13 E14-1 DO IT! 14-2

Acc 291 week 4 Wiley Plus E11-13 E14-1 DO IT! 14-2

E11-13 E14-1 DO IT! 14-2

E11-13 On January 1, Armada Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred.

Apr. 1	Issued 15,000 additional shares of common stock for $17 per share.
June 15	Declared a cash dividend of $1 per share to stockholders of record on June 30.
July 10	Paid the $1 cash dividend.
Dec. 1	Issued 2,000 additional shares of common stock for $19 per share.
Dec. 15	Declared a cash dividend on outstanding shares of $1.20 per share to stockholders of record on December 31.

Prepare the entries, if any, on each of the three dividend dates.

Date	Account/Description	Debit	Credit
June 15	Retained earnings Dividends payable Cash dividends Dividend expense Accounts payable Cash Accounts receivable Common stock Common stock dividends distributable
	Retained earnings Accounts receivable Dividends payable Cash Cash dividends Common stock Common stock dividends distributable Dividend expense Accounts payable
July 10	Cash Retained earnings Accounts payable Common stock dividends distributable Accounts receivable Common stock Dividend expense Cash dividends Dividends payable
	Accounts payable Dividends payable Accounts receivable Retained earnings Common stock Cash Common stock dividends distributable Dividend expense Cash dividends
Dec. 15	Retained earnings Dividends payable Cash Accounts payable Accounts receivable Common stock dividends distributable Cash dividends Common stock Dividend expense
	Accounts payable Dividends payable Retained earnings Cash Common stock Accounts receivable Dividend expense Common stock dividends distributable Cash dividends

How are dividends and dividends payable reported in the financial statements prepared at December 31?

How are dividends and dividends payable reported in the financial statements prepared at December 31?

In the Retained earnings statement Income statement Balance sheet , dividends of $ will be added deducted .

In the Income statement Balance sheet Retained earnings statement , dividends payable of $ will be reported as a current asset current liability .

E14-1 Financial information for Blevins Inc. is presented below.

	December 31, 2012	December 31, 2011
Current assets	$125,000	$100,000
Plant assets (net)	396,000	330,000
Current liabilities	91,000	70,000
Long-term liabilities	133,000	95,000
Common stock, $1 par	161,000	115,000
Retained earnings	136,000	150,000

Complete the schedule showing a horizontal analysis for 2012 using 2011 as the base year. (If amount is a decrease, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round percentages to 1 decimal place, e.g. 10.5. List items in the order given in the question.)

BLEVINS INC.
Condensed Balance Sheet
December 31
			Increase or (Decrease)
	2012	2011	Amount	Percentage
Assets
Plant assets (net) Retained earnings Current liabilities Long-term liabilities Common stock, $1 par Current assets	$	$	$	%
Common stock, $1 par Retained earnings Current liabilities Plant assets (net) Current assets Long-term liabilities				%
Total assets	$	$	$	%
Liabilities
Current assets Retained earnings Current liabilities Plant assets (net) Long-term liabilities Common stock, $1 par	$	$	$	%
Common stock, $1 par Current assets Retained earnings Long-term liabilities Plant assets (net) Current liabilities				%
Total liabilities	$	$	$	%
Stockholders' Equity
Common stock, $1 par Current assets Current liabilities Plant assets (net) Long-term liabilities Retained earnings	$	$	$	%
Retained earnings Common stock, $1 par Current assets Plant assets (net) Current liabilities Long-term liabilities				%
Total stockholders equity	$	$	$	%
Total liabilities and stockholders' equity	$	$	$	%

DO IT! 14-2 The condensed financial statements of Eau Fraîche Company for the years 2010 and 2011 are presented below.

EAU FRAÎHE COMPANY
Balance Sheets
December 31
	2011		2010
Current assets
Cash and cash equivalents	$330		$360
Accounts receivable (net)	470		400
Inventories	460		390
Prepaid expenses	120		160
Total current assets	1,380		1,310
Property, plant, and equipment	420		380
Investments	10		10
Intangibles and other assets	530		510
Total assets	$2,340		$2,210
Current liabilities	$900		$790
Long-term liabilities	410		380
Stockholders' equity - common	1,030		1,040
Total liabilities and stockholders' equity	$2,340		$2,210

EAU FRAÎHE COMPANY
Income Statement
For the Years Ended December 31
	2011		2010
Revenues	$3,800		$3,480
Costs and expenses
Cost of goods sold	970		890
Selling and administrative expenses	2,400		2,330
Interest expense	10		20
Total costs and expenses	3,380		3,240
Income before income taxes	420		220
Income tax expense	168		132
Net income	$252		$88

Compute the following ratios for 2010 and 2011. (Round current ratio and inventory turnover to 2 decimal places, e.g. 2.50. Round all other answers to 1 decimal place, e.g. 5.2.)

	2011	2010
Current ratio	:1	:1
Inventory turnover (Inventory on 12/31/09 was $340)	times	times
Profit margin	%	%
Return on assets (Assets on 12/31/09 were $1,900)	%	%
Return on common stockholders' equity. (Stockholders' equity-common on 12/31/09 was $900.)	%	%
Debt to total assets ratio.	%	%
Times interest earned.	times	times

SOLUTION PREVIEW

Complete the schedule showing a horizontal analysis for 2012 using 2011 as the base year. (If amount is a decrease, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round percentages to 1 decimal place, e.g. 10.5. List items in the order given in the question.)

BLEVINS INC.
Condensed Balance Sheet
December 31
			Increase or (Decrease)
	2012	2011	Amount	Percentage
Assets
Plant assets (net) Retained earnings Current liabilities Long-term liabilities Common stock, $1 par Current assets	$	$	$	%
Common stock, $1 par Retained earnings Current liabilities Plant assets (net) Current assets Long-term liabilities				%

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