1) Jack Son Co. issues 3,000 shares of $1 par value common stock for $7 per share.
a. What is the journal entry to record this transaction? (You may or may not need all rows of this textbox).
b. Jack Son Co. repurchases 500 of its own common shares for Treasury for $5 per share. What is the journal entry to record this transaction? (You may or may not need all rows of this textbox).
c. Assuming the above transactions represent all of the common stock activity of Jack Son Co., how many common shares are issued?
d. Assuming the above transactions represent all of the common stock activity of Jack Son Co., how many common shares are in treasury?
e. Assuming the above transactions represent all of the common stock activity of Jack Son Co., how many common shares are outstanding?
2) On Dec. 1, 2013, the board of directors of Join Us Inc. declared a $3.00 per share cash dividend on 100,000 shares of $1 par value common stock. The dividend will be paid to stockholders' who own shares on Dec. 25, 2013. The dividend will be paid on Jan. 10, 2014. What journal entry, if any, is required on each of the following dates?
a. Dec. 1, 2013
b. Dec. 25, 2013
c. Jan. 10, 2014
3) Use the following Stockholders' Equity section of a Balance Sheet to answer the following questions.
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Excerpt of Balance Sheet:
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12/31/13
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12/31/12
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Preferred Stock, ($100 par value per share)
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$ 2,500,000
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$ 1,900,000
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Common Stock - ($4 par value per share)
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620,000
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500,000
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Paid-In Capital In Excess of Par - Preferred stock
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97,000
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77,000
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Paid-In Capital In Excess of Par - Common Stock
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2,440,000
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1,960,000
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Retained Earnings
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1,200,000
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995,000
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Treasury Stock (810 and 700common shares, respectively)
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226,000
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97,000
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Total Stockholders' Equity
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$6,631,000
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$5,335,000
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a. How many Preferred Stockshares have been issued as of Dec. 31, 2012?
b. How many Common Stockshares were outstanding as of Dec. 31,2013? (Hint: Remember to take treasury shares into consideration).
c. Assume the change from Dec. 31, 2012 to Dec. 31, 2013 in Preferred Stock and Paid-In Capital in Excess of Par - Preferred Stock was caused by the issuance of additional shares. Answer the following questions:
i) What is the dollar amount change in the Preferred Stock total par value during 2013?
ii) How many additional shares of Preferred Stock were sold in 2013?
iii) What is the Paid-In Capital In Excess of Par value related to these additional shares?
d. The company purchased some of its own common shares for Treasury, and that is the only transaction to affect the Treasury Stock account in 2013. What is the journal entry to record this repurchase of shares? (You may or may not need all rows of this textbox).