Sheldon Optics produces medical lasers for use in hospitals. The accounts and their

Sheldon Optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Sheldon optics on October 31 of the current year as follows: Preferred 2% stock, $80 par (50000 shares authorized 25000 shares issued) $2,000,000

Paid in capital in excess of par-preferred stock $75,000

Common stock, $100 par (500,000 shares authorized, 50,000 shares issued) $5,000,000

Paid in Capital in excess of par common stock $600,000

Retained earnings $16,750,000

At the annual stockholders meeting on December 7, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approx $5,300,000.

The plan provided (a) that the corporation borrow $2,000,000, (b) that 15,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that a building, valued at $ 1,850,000, and the land which it is located, valued at $162,500, be acquired in accordance with preliminary negotiations by the issuance of 17,500 shares of common stock. The plan was approved by the stockholders and accomplished by the following transactions: Jan 10. Borrowed $2,000,000 from Whitefish National Bank, giving a 7% mortgage note. Jan 21. Issued 15,000 shares of preferred stock, receiving $84.50 per share in cash. Jan 31. Issued 17,500 shares of common stock in exchange for land and a building, according to the plan. No other transaction occurred in January.

Instructions: Journalize the entries to record the forgoing transactions.

 

File name: Sheldon-Optics-produces.xls File type: application/vnd.ms-excel  Price: $4

Bridger Bike Corp. manufacturers bikes and distributes them through retail outlets in

Bridger Bike Corp. manufacturers bikes and distributes them through retail outlets in Montana, Idaho, Oregon and Washington. Bridger Bike Corp. has declared the following annual dividends over a six-year period ending December 31 of each year: 2005, $5000; 2006, $18000; 2007, $45000; 2008, $45000; 2009, $60000; and 2010, $67000. During the entire period, the outstanding stock of the company was composed of 10000 shares of 2% cumulative preferred stock, $100 par, and 25000 shares of common stock, $1 par.

 

Instructions: 

1. Determine the total dividends and the per share dividends declared on each class of stock for each of the six years. There were no dividends in arrears on January 1, 2005. Summarize the data in tabular form, using the following column headings: Year Total Dividends Preferred Dividend Common Dividend Total Per share Total Per share 2005 $5000 2006 $18000 2007 $45000 2008 $60000 2009 $60000 2010 $67000

2. Determine the average annual dividend per share for each class of stock for the six year period.

3. Assuming a market price of $125 for the preferred stock and $8 for the common stock, calculate the average annual percentage return on initial shareholders’ investments, based on the average annual dividend per share

(a) for preferred stock and  (b) for common stock.

File name: Bridger_Bike.xls File type: application/vnd.ms-excel Price: $6

Coil Welding Corporation sells and services pipe welding equipment in California.

Coil Welding Corporation sells and services pipe welding equipment in California.

 

The following selected accounts appear in the ledger of Coil Welding Corporation on February 1, 2010, the beginning of the current fiscal year: Preferred 2% Stock, $25 par (50,000 shares authorized, 40,000 shares issued) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000

Paid-In Capital in Excess of Par—Preferred Stock . . . . . . . . . . . . 240,000

Common Stock, $5 par (1,000,000 shares authorized, 750,000 shares issued). . . . . . 3,750,000

Paid-In Capital in Excess of Par—Common Stock . . . . . . . . . . . . 6,000,000

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,785,000

During the year, the corporation completed a number of transactions affecting the stockholders’ equity.

They are summarized as follows:

a. Purchased 60,000 shares of treasury common for $540,000.

b. Sold 42,000 shares of treasury common for $462,000.

c. Issued 7,500 shares of preferred 2% stock at $38.

d. Issued 120,000 shares of common stock at $15, receiving cash.

e. Sold 13,000 shares of treasury common for $110,500.

f. Declared cash dividends of $0.50 per share on preferred stock and $0.42 per share on common stock.

g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.

 

File name: Coil-Welding-corporation.xls File type: application/vnd.ms-excel Price: $5

Porto Bay Corporation manufactures and distributes leisure clothing. Selected transactions completed by Porto Bay during the current fiscal year are as follows

Porto Bay Corporation manufactures and distributes leisure clothing. Selected transactions completed by Porto Bay during the current fiscal year are as follows:

 

Jan. 10. Split the common stock 4 for 1 and reduced the par from $100 to $25 per share. After the split, there were 500,000 common shares outstanding.

Mar. 1. Declared semi-annual dividends of $1.20 on 80,000 shares of preferred stock and $0.24 on the 500,000 shares of $25 par common stock to stockholders of record on March 31, payable on April 30.

Apr. 30. Paid the cash dividends.

July 9. Purchased 75,000 shares of the corporation’s own common stock at $26, recording the stock at cost.

Aug. 29. Sold 40,000 shares of treasury stock at $32, receiving cash.

Sept. 1. Declared semi-annual dividends of $1.20 on the preferred stock and $0.15 on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $30.

Oct. 31. Paid the cash dividends and issued the certificates for the common stock dividend.

Instructions
Journalize the transactions.

 

File name: Porto-Bay-Corporation1.xls File type: application/vnd.ms-excel Price: $5

The ledger of Hixson Company at the end of the current year shows accounts receivable

The ledger of Hixson Company at the end of the current year shows accounts receivable 120,000, sales 840,000 and sales returns and allowance 30,000.

 

Instructions

A) If Hixson uses the direct write off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Hixson determines that fells 1.400 balance is uncollectible.

B) If allowance for doubtful accounts has a credit balance of 2,100 in the trial balance journalize the adjusting entry at December 31, assuming bad debts are expected to be

(1) 1 % of net sales, and (2) 10 % of accounts receivable

C) If allowance for doubtful accounts has a debit balance of $200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable.

File name: E9-3-The-ledger-of-Hixson.doc File type: application/msword Price: $5