Question

chapt12-01

Dividends Per Share

Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,000 shares of cumulative preferred 3% stock, $15 par, and 400,500 shares of $27 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $56,600 ; second year, $76,300 ; third year, $79,700 ; fourth year, $100,700 .

Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".

	1st Year	2nd Year	3rd Year	4th Year
Preferred stock (dividends per share)	$	$	$	$
Common stock (dividends per share)	$	$	$	$

instructions 12-03

On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 70,300 shares of $45 par common stock at $56, and on February 27, it issued for cash 18,450 shares of preferred stock, $10 par at $15.

Required:

	a. Journalize the entries for January 22 and February 27. Refer to the Chart of Accounts for exact wording of account titles.
	b. What is the total amount invested (total paid-in capital) by all stockholders as of February 27?

CHART OF ACCOUNTS

Jefferson County Rocks Inc.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Inventory
145	Office Supplies
151	Prepaid Insurance
181	Land
193	Equipment
194	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
226	Interest Payable
231	Cash Dividends Payable
236	Stock Dividends Distributable
241	Salaries Payable
261	Mortgage Note Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
315	Treasury Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
351	Cash Dividends
352	Stock Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
515	Credit Card Expense
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Selling Expenses
534	Rent Expense
535	Insurance Expense
536	Office Supplies Expense
537	Organizational Expenses
562	Depreciation Expense-Equipment
590	Miscellaneous Expense
710	Interest Expense

a. Journalize the entries for January 22 and February 27. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6

b . What is the total amount invested (total paid-in capital) by all stockholders The owners of a corporation.

as of February 27? $_____________

Answer 1

Chapter 12-01

Ch 12-03

a

b