Acc 291 Final Exam

ACC 291 FINAL EXAM

A+ Graded Tutorial Available At:

http://hwsoloutions.com/?product=final-exam

Visit Our website: http://hwsoloutions.com/

Product Description

ACC 291 WEEK 4 INDIVIDUAL ASSIGNMENT – EXERCISES,

E11-15

Before Action After Stock Dividend After Stock Split

Stockholders’ equity

Paid-in capital

Common stock $600,000 $630,000 $600,000

In excess of par value 0 3,000 x ($14-$10)=12,000 0

Stockholders’ equity

Paid-in capital

Capital stock

8% Preferred stock, $100 par value

Noncumulative, 40,000 authorized shares

2,400 issued and outstanding shares…………………………………………………………………….$240,000

Common Stock, no par, $5.00

400,000 authorized shares, 399,000 outstanding……………………………………………..……2,000,000

Additional paid-in capital in excess of par value-preferred stock……………$56,000

in excess of par value-common stock……………5,700,000

Treasury stock – common………………………3,000

Total additional paid-in capital………………………………………………………………………….……5,759,000

Total paid-in capital……………………………………………………………………………………………….7,999,000

Retained earnings……………………………………………………………………………………………………….560,000

Total paid-in capital and retained earnings…………………………………………………..………….8,559,000

Less: Treasury stock (1,000 common shares)…………………………….………………………………..(22,000)

Total stockholders’ equity…………………………………………………………………………………….$8,537,000

E12-1

Three reasons why companies purchase investments in debt or stock securities are because they may have excess cash on hand, want to generate earnings from investment income, and invest for strategic reasons.

A corporation might have excess cash that it does not need for operations due to reasons such as seasonal fluctuations in sales and economic cycles.

The typical investment when investing cash for short periods of time is a government issued security.

Stockholders’ equity

Paid-in capital

Capital stock

8% Preferred stock, $100 par value

Noncumulative, 40,000 authorized shares

2,400 issued and outstanding...