Acc 291 Wiley Plus E 11-1, 11-15 Ect..
ACC 291 Week 4 Wiley Plus Assignments
DO IT! 11-1 Correct.
Indicate whether each of the following statements is true or false.
1. The corporation is an entity separate and distinct from its owners. True
2. The liability of stockholders is normally limited to their investment in the corporation. True
3. The relative lack of government regulation is an advantage of the corporate form of business. False
4. There is no journal entry to record the authorization of capital stock. True
5. No-par value stock is quite rare today. False
E11-15 Correct.
On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.
Complete the tabular summary of the effects of the alternative actions on the components of stockholders' equity and outstanding shares. (If answer is zero, please enter 0. Do not leave any fields blank.) Before Action After Stock Dividend After Stock Split
Stockholders' equity Paid-in capital Common Stock $ 600000 $ 630000 $ 600000 In excess of par value 0 12000 0 Total paid-in capital 600000 642000 600000 Retained earnings 900000 858000 900000 Total stockholders' equity $ 1500000 1500000 $ 1500000 Outstanding shares 60000 63000 120000
E11-16 Correct.
Before preparing financial statements for the current year, the chief accountant for Springer Company discovered the following errors in the accounts.
1. The declaration and payment of $50,000 cash dividend was recorded as a debit to Interest Expense $50,000 and a credit to Cash $50,000.
2. A 10% stock dividend (1,000 shares) was declared on the $10 par value stock
DO IT! 11-1 Correct.
Indicate whether each of the following statements is true or false.
1. The corporation is an entity separate and distinct from its owners. True
2. The liability of stockholders is normally limited to their investment in the corporation. True
3. The relative lack of government regulation is an advantage of the corporate form of business. False
4. There is no journal entry to record the authorization of capital stock. True
5. No-par value stock is quite rare today. False
E11-15 Correct.
On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.
Complete the tabular summary of the effects of the alternative actions on the components of stockholders' equity and outstanding shares. (If answer is zero, please enter 0. Do not leave any fields blank.) Before Action After Stock Dividend After Stock Split
Stockholders' equity Paid-in capital Common Stock $ 600000 $ 630000 $ 600000 In excess of par value 0 12000 0 Total paid-in capital 600000 642000 600000 Retained earnings 900000 858000 900000 Total stockholders' equity $ 1500000 1500000 $ 1500000 Outstanding shares 60000 63000 120000
E11-16 Correct.
Before preparing financial statements for the current year, the chief accountant for Springer Company discovered the following errors in the accounts.
1. The declaration and payment of $50,000 cash dividend was recorded as a debit to Interest Expense $50,000 and a credit to Cash $50,000.
2. A 10% stock dividend (1,000 shares) was declared on the $10 par value stock