ACC 423 Final Exam

Topics: Preferred stock, Stock, Stock market Pages: 6 (2088 words) Published: September 4, 2014
ACC 423 Final Exam

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Question 1
Buttercup Corporation issued 330 shares of $10 par value common stock for $4,950. Prepare Buttercup journal entry.( List multiple debit credit from largest to smallest amount e.g. 10,5,2)

Question 2
Wilco Corporation has the following account balances at December 31, 2012 Common Stock $5 par value $551,530 Treasury Stock 99,710 Retained Earnings 2,377,200 Paid in capital in excess of par 1,346,570 Prepare Wilco’s December 31,2012, stockholders equity section

Question 3
Woolford Inc. declared a cash dividend of $1.37 par share on its 2.49 million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on August 15. Prepare the journal entries necessary on those three dates. ( If no entry is required , enter no entry as the description and 0 as the amount)

Question 4 (Preferred Dividends)
The outstanding capital stock of Pennington Corporation consists of 2200 shares of $101 par value , 6 % preferred, and, 8400 shares of $56 par value common. Assuming that the company has retained earnings of $82,000, all of which is to be paid out in dividends, and that preferred dividends was not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following condition: (a) The preferred stock is noncumulative and nonparticipating (b) red stock is cumulative and nonparticipating

(c)The preferred stock is cumulative and Participating (Round rate of participation is 4 decimal places, e.g. 5.1234. Round final answer to 0 decimal places , e.g. 25,320)

Question 5 (Preferred Dividends)
Martinez Company’s ledger shows the following balances on December31, 2012. 5% preferred stock- $10 par value , outstanding 22,720 shares $227,220 Common stock- $100 par value, outstanding 34,080 shares 3408,000 Retained Earnings 715,680 Assuming that the directors decides to declare total dividend in the amount of $302,176, determine how much each class of stock should receive under each of the conditions stated below . One years dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully participating (b) The preferred stock is noncumulative and nonparticipating (c) The preferred stock is noncumulative and is participating in distributions in excess of a 7% dividend rate on the common stocks (NOTE: Do not round rate of participation. Round final answers to zero decimal places,e.g. 12,310)

Question 6
On January1,2012, Barwood corporation granted 5,430 options to executives. Each option entitles the holder to purchase one share of Barewood’s $5 par value common stock at $50 per share at any time during next 5 years. The market price of the stock is $68 per share on the date of the grant. The fair value of the options at the grant date is $150,900. The period of benefits is 2 years. Prepare Barewood’s journal entries for January 1, 2012, and December 31,2012 and 2013.( If no entry is required, enter no Entry as the description and 0 as the moment)

Question 7
Rockland corporation earned net income of $417,900 in 2012 and had 100000 shares of common stock outstanding throughout the year. Also outstanding all year was $1,114,400 of 10% bonds, which are convertible into 22,288 shares of common . Rockland’s tax rate is 40 percent. Compute Rockland’s 2012 diluted earnings per share.(Round answer to 2 decimal...
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