Acc 423 Week 2 Individual

ACC 423 INDIVIDUAL ASSIGNMENTS

Week Two:

Exercise 15-13 |

|

|

| Your answer is correct. |

  |   |

The common stock of Warner Inc. is currently selling at $111 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $74 per share. 5.33 million shares are issued and outstanding.

Prepare the necessary journal entries assuming the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a) | | The board votes a 2-for-1 stock split. |

(b) | | The board votes a 100% stock dividend. |

No. | Account Titles and Explanation | Debit | Credit |

(a) | | | |

| | | |

(b) | | | |

| | | |

| (To record the declaration.) | | |

| | | |

| | | |

| (To record the distribution.) | | |

a) Just a note to disclose the increase in shares and the reduction in par value

b) $10 (par) x 5.33 mil (outstanding shares)

Problem 15-1 |

|

On January 5, 2012, Phelps Corporation received a charter granting the right to issue 5,100 shares of $102 par value, 8% cumulative and nonparticipating preferred stock, and 54,500 shares of $11 par value common stock. It then completed these transactions.

Jan. 11 | | Issued 20,240 shares of common stock at $19 per share. |

Feb. 1 | | Issued to Sanchez Corp. 4,500 shares of preferred stock for the following assets: equipment with a fair value of $55,760; a factory building with a fair value of $170,700; and land with an appraised value of $325,300. |

July 29 | | Purchased 1,950 shares of common stock at $18 per share. (Use cost method.) |

Aug. 10 | | Sold the 1,950 treasury shares at $13 per share. |

Dec. 31 | | Declared a $0.40 per share cash dividend on the common stock and declared the preferred dividend. |

Dec. 31 | |...