Class Exercises - Ch 12 - Tài liệu tham khảo | Đại học Hoa Sen

Class Exercises - Ch 12 - Tài liệu tham khảo | Đại học Hoa Sen và thông tin bổ ích giúp sinh viên tham khảo, ôn luyện và phục vụ nhu cầu học tập của mình cụ thể là có định hướng, ôn tập, nắm vững kiến thức môn học và làm bài tốt trong những bài kiểm tra, bài tiểu luận, bài tập kết thúc học phần, từ đó học tập tốt và có kết quả cao cũng như có thể vận dụng tốt những kiến thức mình đã học.

Class exercises – Ch 12 – Solutions – Acct 161
Quick Study 12-5 (10 minutes)
$48,000 + $146,000 – $47,000 – $15,000 = $132,000
OR
Retained Earnings
48,000 Bal. Dec. 31/20
146,000 Profit, 2021
Dividends, 2021 47,000
Loss, 2022 15,000
132,000 Bal. Dec. 31/22
Quick Study 12-12 (10 minutes)
a. Total dividend ............................................. 108,000
To preferred shareholders........................ 60,000*
Remainder to common shareholders...... $48,000
*75,000 shares × $0.40 × 2 years = $60,000
b. Total dividend ............................................. 108,000
To preferred shareholders........................ 30,000*
Remainder to common shareholders...... $78,000
*75,000 shares × $0.40 for current year only = $30,000
Quick Study 12-13 (10 minutes)
a. The preferred shares are entitled to receive $0.50 per share when the board of
directors declares dividends; if dividends are not declared, the undeclared
dividends do not become a liability but go into arrears; arrears mean that the
undeclared dividends must be paid to the preferred shareholders in the future along
with any current dividends before the common shareholders receive dividends.
b. The total amount contributed, or given to the corporation, in exchange for
ownership in the corporation.
c. The corporation is allowed to issue 20,000 shares based on its articles of
incorporation.
d. 150,000 common shares have been sold and are held by shareholders.
e. Accumulated profit less any losses and dividends.
f. An unlimited number of common shares may be issued by the corporation based
on its articles of incorporation.
Exercise 12-2 (15 minutes)
2020
Jan. 15 Organization Expenses (or other various expenses)......... 31,700
Common Shares............................................................ 31,700
Issued common shares to promoters.
Feb. 21 Cash....................................................................................... 208,000
Common Shares............................................................ 208,000
Issued common shares for cash;
16,000 shares x $13/share = $208,000.
Mar. 9 Cash....................................................................................... 111,600
Preferred Shares............................................................ 111,600
Issued preferred shares for cash.
Aug. 15 Land....................................................................................... 317,000
Building................................................................................. 422,000
Equipment............................................................................. 114,000
Common Shares............................................................ 853,000
Issued common shares in exchange for land,
building, and equipment.
Exercise 12-4 (10 minutes)
March 1 Cash Dividends or Retained Earnings........................... 88,900
Common Dividends Payable................................. 88,900
To record declaration of cash dividend on common
shares of $0.70 per share.
10 No entry.
31 Common Dividends Payable........................................... 88,900
Cash...................................................................... 88,900
Paid the dividends declared on March 1.
Exercise 12-9 (20 minutes)
1. $6/share × 8,000 shares = $48,000
2. Yes. Calculation is $48,000 × 2 years = $96,000
3. a) ($6 × 8,000 shares) = $48,000 × 3 years =
$144,000
b) $4.80 × 45,000 = $216,000
4. $126,000 + $408,000 $144,000 $216,000 =
$174,000
5. $192,000 + $540,000 = $732,000
6. $732,000 + $174,000 = $906,000
7. 10,000 – 8,000 = 2,000
8. $192,000/8,000 shares = $24/share
Exercise 12-11 (20 minutes)
NOTE: The holders of the cumulative preferred shares
are entitled to no more than $412,800 of dividends in
any year ($9.60 × 43,000 shares) plus any dividends in
arrears.
Common
2018 ($0):
Preferred—current.....................................................
$ 0
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 0....................................................
2019 ($440,000):
Preferred—arrears.....................................................
$ 412,800
Preferred—current ($440,000 –
$412,800).....................................................................
27,200
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 440,000....................................................
2020 ($1,058,000):
Preferred—arrears ($412,800 – $27,200)..................
$ 385,600
Preferred—current.....................................................
412,800
Common—remainder ($1,058,000 –
$798,400).....................................................................
....................................................
Total for the year........................................................
$ 798,400...................................................
2021 ($440,000):
Preferred—current.....................................................
$ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................
.....................................................
Total for the year........................................................
$ 412,800....................................................
Total for four years....................................................
$1,651,200....................................................
Exercise 12-12 (20 minutes)
NOTE: The holders of the noncumulative preferred
shares are entitled to no more than $412,800 of
dividends in any year ($9.60 × 43,000 shares).
Common
2018 ($0):
Preferred—current.....................................................
$ 0
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 0....................................................
2019 ($440,000):
Preferred—current.....................................................
$ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................
......................................................
Total for the year........................................................
$ 412,800....................................................
2020 ($1,058,000):
Preferred—current.....................................................
412,800
Common—remainder ($1,058,000 –
$412,800).....................................................................
......................................................
Total for the year........................................................
$ 412,800...................................................
2021 ($480,000):
Preferred—current.....................................................
$ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................
......................................................
Total for the year........................................................
$ 412,800....................................................
Total for four years....................................................
$1,238,400....................................................
Exercise 12-11 (20 minutes)
NOTE: The holders of the cumulative preferred shares
are entitled to no more than $412,800 of dividends in
any year ($9.60 × 43,000 shares) plus any dividends in
arrears.
Common
2018 ($0):
Preferred—current.....................................................
$ 0
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 0....................................................
2019 ($440,000):
Preferred—arrears.....................................................
$ 412,800
Preferred—current ($440,000 –
$412,800).....................................................................
27,200
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 440,000....................................................
2020 ($1,058,000):
Preferred—arrears ($412,800 – $27,200)..................
$ 385,600
Preferred—current.....................................................
412,800
Common—remainder ($1,058,000 –
$798,400).....................................................................
....................................................
Total for the year........................................................
$ 798,400...................................................
2021 ($440,000):
Preferred—current.....................................................
$ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................
.....................................................
Total for the year........................................................
$ 412,800....................................................
Total for four years....................................................
$1,651,200....................................................
Exercise 12-12 (20 minutes)
NOTE: The holders of the noncumulative preferred
shares are entitled to no more than $412,800 of
dividends in any year ($9.60 × 43,000 shares).
Common
2018 ($0):
Preferred—current.....................................................
$ 0
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 0....................................................
2019 ($440,000):
Preferred—current.....................................................
$ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................
......................................................
Total for the year........................................................
$ 412,800....................................................
2020 ($1,058,000):
Preferred—current.....................................................
412,800
Common—remainder ($1,058,000 –
$412,800).....................................................................
......................................................
Total for the year........................................................
$ 412,800...................................................
2021 ($480,000):
Preferred—current.....................................................
$ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................
......................................................
Total for the year........................................................
$ 412,800....................................................
Total for four years....................................................
$1,238,400....................................................
Exercise 12-13 (10 minutes)
1. B 4. E
2. A 5. D
3. F 6. C
Exercise 12-19 (20 minutes)
127,650 + 44,500 = 172,150 ending shares
(127,650 + 172,150)/ 2 = 149,900 average shares
outstanding
$3,222,850/ 149,900 = $21.50 book value
The book value was $21.50 on December 31, 2020 and
the market value of $32.50 is an indication that the
shareholders are willing to pay more for the shares,
anticipating higher dividends or growth in the
company. If the marketing plan does not work out,
the market value could quickly drop below the book
value amount of $21.50. Market values of a firm’s
shares are typically higher than the book value, as
investors take into consideration a variety of factors
that go beyond reported net assets, such as revenue
growth, cash flow, profitability, as well as current and
future market conditions.
Problem 12-4A (25 minutes)
1. $540,000/$18 per share = 30,000 shares
2. 325,000 shares × $9.60 per share = $3,120,000
3. $540,000 + $3,120,000 = $3,660,000
4. $3,660,000 – $3,468,000 = $192,000 Deficit
5. 384,000 Beginning R/E Balance + 192,000 Ending
Deficit Balance = 576,000 Loss
6. a) $3.00/share × 30,000 shares = $90,000 to
preferred shareholders
b) $120,000 – $90,000 paid to preferred
shareholders = $30,000 to common shareholders
7. a) $90,000/30,000 shares = $3.00/share
b) $30,000/325,000 shares = $.0923/share
8. No, because the preferred shares are non-
cumulative.
9. Retained Earnings result when cumulative net
earnings are greater than cumulative losses and
dividends. A deficit results when cumulative
earnings are less than cumulative losses and
dividends.
10. Dividends in arrears represent undeclared
dividends that must be paid to preferred
shareholders before any dividends are given to
common shareholders but only if dividends are
declared. , in contrast, areDividends payable
dividends that have been declared but not yet
paid.
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Class exercises – Ch 12 – Solutions – Acct 161
Quick Study 12-5 (10 minutes)
$48,000 + $146,000 – $47,000 – $15,000 = $132,000 OR
Retained Earnings 48,000 Bal. Dec. 31/20 146,000 Profit, 2021 Dividends, 2021 47,000 Loss, 2022 15,000 132,000 Bal. Dec. 31/22
Quick Study 12-12 (10 minutes)
a. Total dividend ............................................. 108,000
To preferred shareholders........................ 60,000*
Remainder to common shareholders...... $48,000
*75,000 shares × $0.40 × 2 years = $60,000
b. Total dividend ............................................. 108,000
To preferred shareholders........................ 30,000*
Remainder to common shareholders...... $78,000
*75,000 shares × $0.40 for current year only = $30,000
Quick Study 12-13 (10 minutes)
a. The preferred shares are entitled to receive $0.50 per share when the board of
directors declares dividends; if dividends are not declared, the undeclared
dividends do not become a liability but go into arrears; arrears mean that the
undeclared dividends must be paid to the preferred shareholders in the future along
with any current dividends before the common shareholders receive dividends.

b. The total amount contributed, or given to the corporation, in exchange for
ownership in the corporation.
c. The corporation is allowed to issue 20,000 shares based on its articles of incorporation.
d. 150,000 common shares have been sold and are held by shareholders.
e. Accumulated profit less any losses and dividends. f.

An unlimited number of common shares may be issued by the corporation based
on its articles of incorporation.

Exercise 12-2 (15 minutes) 2020 Jan. 15
Organization Expenses (or other various expenses)......... 31,700
Common Shares............................................................ 31,700
Issued common shares to promoters. Feb. 21
Cash....................................................................................... 208,000
Common Shares............................................................ 208,000
Issued common shares for cash;
16,000 shares x $13/share = $208,000.
Mar. 9
Cash....................................................................................... 111,600
Preferred Shares............................................................ 111,600
Issued preferred shares for cash. Aug. 15
Land....................................................................................... 317,000
Building................................................................................. 422,000
Equipment............................................................................. 114,000
Common Shares............................................................ 853,000
Issued common shares in exchange for land,
building, and equipment.

Exercise 12-4 (10 minutes) March
1 Cash Dividends or Retained Earnings........................... 88,900
Common Dividends Payable................................. 88,900
To record declaration of cash dividend on common
shares of $0.70 per share.
10 No entry.
31 Common Dividends Payable........................................... 88,900
Cash...................................................................... 88,900
Paid the dividends declared on March 1.
Exercise 12-9 (20 minutes)
1. $6/share × 8,000 shares = $48,000
2. Yes. Calculation is $48,000 × 2 years = $96,000
3. a) ($6 × 8,000 shares) = $48,000 × 3 years = $144,000
b) $4.80 × 45,000 = $216,000
4. $126,000 + $408,000 – $144,000 – $216,000 = $174,000
5. $192,000 + $540,000 = $732,000
6. $732,000 + $174,000 = $906,000
7. 10,000 – 8,000 = 2,000
8. $192,000/8,000 shares = $24/share
Exercise 12-11 (20 minutes)
NOTE: The holders of the cumulative preferred shares
are entitled to no more than $412,800 of dividends in
any year ($9.60 × 43,000 shares) plus any dividends in arrears.
Common 2018 ($0):
Preferred—current..................................................... $ 0
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 0....................................................
2019 ($440,000):
Preferred—arrears..................................................... $ 412,800
Preferred—current ($440,000 –
$412,800)..................................................................... 27,200
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 440,000....................................................
2020 ($1,058,000):
Preferred—arrears ($412,800 – $27,200).................. $ 385,600
Preferred—current.....................................................
412,800
Common—remainder ($1,058,000 –
$798,400).....................................................................
....................................................
Total for the year........................................................
$ 798,400...................................................
2021 ($440,000):
Preferred—current..................................................... $ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................

.....................................................
Total for the year........................................................
$ 412,800....................................................
Total for four years....................................................
$1,651,200....................................................

Exercise 12-12 (20 minutes)
NOTE: The holders of the noncumulative preferred
shares are entitled to no more than $412,800 of
dividends in any year ($9.60 × 43,000 shares).
Common 2018 ($0):
Preferred—current..................................................... $ 0
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 0....................................................
2019 ($440,000):
Preferred—current..................................................... $ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................

......................................................
Total for the year........................................................
$ 412,800....................................................
2020 ($1,058,000):
Preferred—current..................................................... 412,800

Common—remainder ($1,058,000 –
$412,800).....................................................................

......................................................
Total for the year........................................................
$ 412,800...................................................
2021 ($480,000):
Preferred—current..................................................... $ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................

......................................................
Total for the year........................................................
$ 412,800....................................................

Total for four years....................................................
$1,238,400....................................................

Exercise 12-11 (20 minutes)
NOTE: The holders of the cumulative preferred shares
are entitled to no more than $412,800 of dividends in
any year ($9.60 × 43,000 shares) plus any dividends in arrears.
Common 2018 ($0):
Preferred—current..................................................... $ 0
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 0....................................................
2019 ($440,000):
Preferred—arrears..................................................... $ 412,800
Preferred—current ($440,000 –
$412,800)..................................................................... 27,200
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 440,000....................................................
2020 ($1,058,000):
Preferred—arrears ($412,800 – $27,200).................. $ 385,600
Preferred—current..................................................... 412,800
Common—remainder ($1,058,000 –
$798,400).....................................................................
....................................................
Total for the year........................................................
$ 798,400...................................................
2021 ($440,000):
Preferred—current..................................................... $ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................

.....................................................
Total for the year........................................................
$ 412,800....................................................
Total for four years....................................................
$1,651,200....................................................

Exercise 12-12 (20 minutes)
NOTE: The holders of the noncumulative preferred
shares are entitled to no more than $412,800 of
dividends in any year ($9.60 × 43,000 shares).
Common 2018 ($0):
Preferred—current..................................................... $ 0
Common—remainder.................................................
....................................................
Total for the year........................................................
$ 0....................................................
2019 ($440,000):
Preferred—current..................................................... $ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................

......................................................
Total for the year........................................................
$ 412,800....................................................
2020 ($1,058,000):
Preferred—current..................................................... 412,800
Common—remainder ($1,058,000 –
$412,800).....................................................................

......................................................
Total for the year........................................................
$ 412,800...................................................
2021 ($480,000):
Preferred—current..................................................... $ 412,800
Common—remainder ($440,000 –
$412,800).....................................................................

......................................................
Total for the year........................................................
$ 412,800....................................................

Total for four years....................................................
$1,238,400....................................................

Exercise 12-13 (10 minutes) 1. B 4. E 2. A 5. D 3. F 6. C
Exercise 12-19 (20 minutes) 127,650 + 44,500 = 172,150 ending shares
(127,650 + 172,150)/ 2 = 149,900 average shares outstanding
$3,222,850/ 149,900 = $21.50 book value

The book value was $21.50 on December 31, 2020 and
the market value of $32.50 is an indication that the
shareholders are willing to pay more for the shares,
anticipating higher dividends or growth in the
company. If the marketing plan does not work out,
the market value could quickly drop below the book
value amount of $21.50. Market values of a firm’s
shares are typically higher than the book value, as
investors take into consideration a variety of factors
that go beyond reported net assets, such as revenue
growth, cash flow, profitability, as well as current and future market conditions.

Problem 12-4A (25 minutes)
1. $540,000/$18 per share = 30,000 shares
2. 325,000 shares × $9.60 per share = $3,120,000
3. $540,000 + $3,120,000 = $3,660,000
4. $3,660,000 – $3,468,000 = $192,000 Deficit
5. 384,000 Beginning R/E Balance + 192,000 Ending
Deficit Balance = 576,000 Loss
6. a) $3.00/share × 30,000 shares = $90,000 to preferred shareholders
b) $120,000 – $90,000 paid to preferred
shareholders = $30,000 to common shareholders
7. a) $90,000/30,000 shares = $3.00/share
b) $30,000/325,000 shares = $.0923/share
8. No, because the preferred shares are non- cumulative.
9. Retained Earnings result when cumulative net
earnings are greater than cumulative losses and
dividends. A deficit results when cumulative
earnings are less than cumulative losses and dividends.

10. Dividends in arrears represent undeclared
dividends that must be paid to preferred
shareholders before any dividends are given to
common shareholders but only if dividends are
declared. Dividends payable
, in contrast, are
dividends that have been declared but not yet paid.