Question

Exercise 1 Dividend per share.

PT Marina, a software development firm, has stock outstanding as follows:

40 000 shares of cumulative preferred 1% stock, Rp125,000 par, and 100,000 shares of Rp150,000 par common.

During its first four years of operations, the following amounts were distributed as dividends:

First year, Rp36,000,000; second year, Rp58,000,000, third year, Rp75,000,000; fourth year, Rp124,000,000.

Calculate the dividend per share on each class of stock for each of the four years.

Exercise 2 Entries for issuing par stock

On May 13, PT Jaya Makmur, a marble contractor, issued for cash 75,000 shares of Rp45,000 par common stock at Rp54,000, and on August 7, it issued for cash 20,000 shares of preferred stock, Rp10,000 par at Rp12,000.

a-Journalize the entries for May 13 and August 7.

b-What is the total amount invested (total paid-in capital) by all stock holders as of August 7?

Exercise 3 Entries for issuing no-par stock

On June 15, PT Indo Permatasari, a carpet wholesaler, issued for cash 750,000 shares of no-par common stock (with stated value of Rp1,500) at Rp4,000, and on July 30, it issued for cash 17,500 shares of preferred stock, Rp50,000 par at Rp60,000.

a-Journalize the entries for June 15, and July 30, assuming that the common stock is to be credited with the stated value.

b- What is the total amount invested (total paid in-capital) by all stockholders as of July 30?

Exercise 4 Entries for stock dividend

PT Senja Pertama is an Health Maintenance Organization (HMO) for business in the Surabaya area. The following account balances appear on the statement of financial position of PT Senja Pertama:

Common stock (800,000 shares authorized; 500,000 shares issued), Rp4,000 par, Rp2,000,000; paid-in capital in excess of par-common stock, Rp1,000,000,000, and Retained Earnings, Rp33,500,000,000.

The board of directors declared a 2% stock dividend when the market price of the stock was Rp13,000 a share. PT Senja Pertama reported no income or loss for the current year.

a-Journalize the entries to record (1) the declaration of the dividend, capitalizing an amount equal to market value, and (2) the issuance of the stock certificates.

b-Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholder’s equity.

c-Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year: (1) total paid-in capital (2) total retained earnings, and (3) total stockholders’ equity.

Answer 1