Question 1
DeLong Corporation was organized on January 1, 2015. It is authorized to issue 14,700 shares of 8%, $100 par value preferred stock, and 495,200 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.
Jan. 10 Issued 76,100 shares of common stock for cash at $4 per share. Mar. 1 Issued 4,800 shares of preferred stock for cash at $110 per share.
Apr. 1 Issued 23,100 shares of common stock for land. The asking price of the land was $91,200. The fair value of the land was
$83,400.
May 1 Issued 78,500 shares of common stock for cash at $4.48 per share.
Aug. 1 Issued 10,200 shares of common stock to attorneys in payment of their bill of $36,200 for services performed in helping the company organize.
Sept. 1 Issued 11,500 shares of common stock for cash at $6 per share. Nov. 1 Issued 2,640 shares of preferred stock for cash at $114 per share.
Journalize the transactions.
Prepare the paid-in capital section of stockholders' equity at December 31, 2015.
Question 2
On January 1, 2015, Geffrey Corporation had the following stockholders' equity accounts.
Common Stock ($20 par value, 65,000 shares issued and outstanding) $1,300,000
Paid-in Capital In Excess of Par-Common Stock 190,900
Retained Earnings 595,700
During the year, the following transactions occurred.
Feb. 1 Declared a $3 cash dividend per share to stockholders of record on February 15, payable March 1.
Mar. 1 Paid the dividend declared in February.
Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $40.
July 1 Declared a 14% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share.
31 Issued the shares for the stock dividend.
Dec. 1 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2016. 31 Determined that net income for the year was $328,000.
Journalize the transactions and the dosing entries for net income and dividends.
Enter the beginning balances, and post the entries to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (Post entries in the order of Journal entries presented in the previous part.)
Prepare a stockholders' equity section at December 31.
Question 3
The following stockholders' equity accounts arranged alphabetically are in the ledger of Westin Corporation at December 31, 2015.
Prepare a stockholders' equity section at December 31, 2015.
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Common Stock ($11 stated value)
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$1,552,100
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Paid-in Capital from Treasury Stock
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6,050
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Paid-in Capital in Excess of Stated Value-Common Stock
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665,600
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Paid-in Capital in Excess of Par-Preferred Stock
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306,100
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Preferred Stock (8%, $105 par, noncumulative)
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393,750
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Retained Earnings
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793,100
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Treasury Stock-Common (7,030 shares)
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91,390
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Compute the book value per share of the common stock, assuming the preferred stock has a call price of $114 per share.
The book value per share of the common stock