11.) Melon Company has outstanding 400,000 shares of $10 par value ordinary shares. The company declares...

11.) Melon Company has outstanding 400,000 shares of $10 par value ordinary shares. The company declares a 5% shares dividend when the fair value of the shares is $65 per share. Prepare the journal entries for Melon Company for both the date of declaration and the date of distribution.

12.) Use the information from QUESTION 11, but assume Melon Company declared a 100% shares dividend rather than a 5% shares dividend. Prepare the journal entries for both the date of declaration and the date of distribution.

20.) The equity accounts of Noble Company have the following balances on December 31, 2019. Share Capital - Ordinary, $10 par, 200,000 shares issued and outstanding $2,000,000 Share Premium – Ordinary 1,200,000 Retained Earnings 5,600,000 Shares of Nobel Company shares are currently selling at $37.

Prepare all necessary journal entries for each of the following cases.

(a) A shares dividend of 5% is declared and issued.

(b) A shares dividend of 40% is declared and issued.

22.) The outstanding share capital of Grew Company consists of 2,000 shares of $100 par value, 6% preference, and 5,000 ordinary shares of $50 par value. Directors have declared cash dividends of $70,000. Note that preference dividends were not paid during the 2 years preceding the current year.

Determine how much each class of shares should receive under each of the following conditions:

(a) The preference shares are non-cumulative and non-participating.

(b) The preference shares are cumulative and non-participating.

Solutions

Expert Solution

ekkarill92 answered 7 months ago

Next > < Previous

Related Solutions

Flounder Corporation has outstanding 517,000 shares of $10 par value common stock. The corporation declares a...

Flounder Corporation has outstanding 517,000 shares of $10 par value common stock. The corporation declares a 5% stock dividend when the fair value of the stock is $62 per share. Prepare the journal entries for Flounder Corporation for both the date of declaration and the date of distribution. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)...

Green Day Corporation has outstanding 400,000 shares of $10 par value common stock.

Green Day Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 5% stock dividend when the fair value of the stock is $65 per share. Prepare the journal entries for Green Day Corporation for both the date of declaration and the date of distribution.

Johansson Corporation has issued 400,000 shares of $2 par value Ordinary shares. It authorized 600,000 shares....

Johansson Corporation has issued 400,000 shares of $2 par value Ordinary shares. It authorized 600,000 shares. The share premium on ordinary shares is $500,000. The corporation has reacquired 20,000 shares at a cost of $80,000 and is currently holding those shares. Treasury stock was reissued in prior years for $100,000 more than its cost. The company declared the issuance of a stock dividend of 10,000 shares. The corporation also has 5,000 shares issued and outstanding of 9%, $100 par value...

As at 31 December 2018, Conrad Company has 850,000 ordinary shares outstanding with par value of...

As at 31 December 2018, Conrad Company has 850,000 ordinary shares outstanding with par value of $5 each that originally issued at $15 per share. On 1 April 2019, Conrad issued 100,000 shares of 8%, $10 par value cumulative convertible preference shares (convertible into 200,000 common shares) and purchased 60,000 ordinary shares on the open market as treasury stock by paying $30 per share. On 1 June 2019, Conrad declared and issued a 2-for-1 share split. The company also issued...

Question text The original sale of the $10 par value ordinary shares of Gray Company was...

Question text The original sale of the $10 par value ordinary shares of Gray Company was recorded as follows: Cash............................................................................................. 430,000 Share Capital—Ordinary................................................. 350,000 Share Premium—Ordinary.............................................. 80,000 Instructions Record the treasury share transactions (given below) under the cost method: Transactions: (a) Bought 300 ordinary shares as treasury shares at $22. (b) Sold 90 shares of treasury shares at $19. (c) Sold 120 treasury shares at $28.

On 1 January 2019, Colson Company had 200,000 ordinary shares outstanding with par value of $l...

On 1 January 2019, Colson Company had 200,000 ordinary shares outstanding with par value of $l each that originally issued at $18 per share. On 1 April 2019, 20,000 ordinary shares were issued at $25 per share and on 1 May, the company issued 5% bonus issue as stock dividend for both ordinary shares and preference shares. During the year, 30,000 treasury shares were repurchased from the open market at $35 on 1 September 2019. On 1 March 2019, the...

Finic company has outstanding 50,000 shares of $50 par ordinary shares which had been issued at...

Finic company has outstanding 50,000 shares of $50 par ordinary shares which had been issued at $60 per share. Finic then entered into the following transactions: 1 Issued 60,000 10% 5-year bonds at 102 2 Issued additional 5,000 shares at a price of $65 per share. 3 Purchased 2,500 treasury shares at a price of $57 per share. 4 The board declared cash dividends at a rate of $1.40 per share. 5 Paid dividends declared in item 4 6 Recorded...

Problem 15-11 Whispering Corporation has outstanding 3,020,000 shares with common stock of a par value of...

Problem 15-11 Whispering Corporation has outstanding 3,020,000 shares with common stock of a par value of $10 each. The balance in its Retained Earnings account at January 1, 2017, was $24,148,000, and it then had Paid-in Capital in Excess of Par—Common Stock of $4,994,000. During 2017, the company’s net income was $4,653,000. A cash dividend of $0.60 a share was declared on May 5, 2017, and was paid June 30, 2017, and a 6% stock dividend was declared on November...

Wilson Corporation issued and has outstanding 134,400 shares of $10 par-value common stock and 2,800 shares...

Wilson Corporation issued and has outstanding 134,400 shares of $10 par-value common stock and 2,800 shares of $70 par-value 20 percent preferred stock. The board of directors votes to distribute $4,200 as dividends in 2016, $7,000 in 2017, and $308,000 in 2018. Compute the total dividend and the dividend for each share paid to preferred stockholders and common stockholders each year under the following assumed situations. Case A: The preferred stock is nonparticipating and noncumulative. (Round your per share...

E15.5 Hartman SE issues 500 shares of 10 par value ordinary and 100 shares of 100 par value preference shares for a lump sum of 100,000.

Instruction. a. Prepare the journal entry for the issuance when the fair value of the ordinary shares is 168 each and fair value of the preference shares is 210 each. b. Prepare the journal entry for the issuance when only the fair value of the ordinary shares 170 per share is known.

Subjects