Purchase Solution

P11-6A Arnold Corporation Complete the stockholders' equity

Not what you're looking for?

Ask Custom Question

Arnold Corporation has been authorized to issue 40,000 shares of $100 par value, 8%, noncumulative preferred stock and 2,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2011, the ledger contained the following balances pertaining to stockholders' equity.

Preferred Stock $240,000
Paid-in Capital in Excess of Par Value-Preferred 56,000
Common Stock 2,000,000
Paid-in Capital in Excess of Stated Value-Common 5,700,000
Treasury Stock-Common (1,000 shares) 22,000
Paid-in Capital from Treasury Stock 3,000
Retained Earnings 560,000

The preferred stock was issued for land having a fair market value of $296,000. All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $22. In December, 500 shares of treasury stock were sold for $28 per share. No dividends were declared in 2011.

Directions:

A) Prepare the journal entries for the: (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.)
Issuance of preferred stock for land.
Issuance of common stock for cash.
Purchase of common treasury stock for cash.
Sale of treasury stock for cash.

B) Complete the stockholders' equity section at December 31, 2011.

Purchase this Solution
Purchase this Solution
Free BrainMass Quizzes
Learning Lean

This quiz will help you understand the basic concepts of Lean.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

View More Free Quizzes
Related BrainMass Solutions

  • Reporting and Analyzing Stockholders' Equity

    206061 Reporting and Analyzing Stockholders' Equity Problem Set P11-2A The stockholders' equity accounts of Alpha Corporation on January 1, 2007, were as follows.

  • Balance Sheets Accounting Principles

    ' equity.......................................... 1,741,000 Total liabilities and stockholders'   equity

  • Retained Earnings and Stockholders Equity

    B) Prepare the stockholders equity section of the balance sheet at Dec.31, 2007 P11-4A The ledger Of Omega Corporation at Dec. 31, 2007, after the books have been closed, contains the following stockholders equity accounts.

  • Return on Stockholders Equity

    130128 Return on Stockholders Equity Utilizing the following information on the Arnold Company, compute the firm's return on equity.

  • Computing and Journalizing Bond Premiums and Discounts

    I would like a professional to run through the problems and give "correct answers" so I may double check the teams work. If this is possible and can be done, I thank you. My main concern is with my problems P11-6A, (b) and (c), problem P11-7A (3).

  • Dillon Company: Compute 13 separate ratios

    P18-6A The comparative statements of Dillon Company are presented below.

  • Stock Holders Equity Section

    corporation had the following transactions and events pertaining to its stockholders' equity.

  • stock-entries-stockholders-equity

    The corporation assigned a $5 stated value to the common stock. At December 31, 2007, the ledger contained the following balances pertaining to stockholders' equity.

  • Ratio Analysis

    equity 9,400,000 14,100,000 A) Use the information above to calculate the following ratios for both years (1) return on assets ratio, (2) return on common stockholders equity ratio, (3) payout ratio, (4) debt to total

View More Related Solutions