,000 1,200,000 1,200,000 1,200,000 1,200,000 1,900,000 1,900,000 1,900,000 50,000 1,850,000 50,000
E.12.12 a. Renvenue 572,000 Expense 282,000 Income before taxes 290,000 Income taxes 101,500 Income from opreating 188,500 Purchase Investment -17,500 Gains on selling investment 19,200 Net Income 190,200 The net income for the year is $190,200 b. Purchase Investment -17,500 Gains on selling investment 19,200 The comprehensive income for the year is $191,900 c. If the market value of Minor's investment at the end of the year, the net income wil be $185,200;and the comprehensive income will decrease to $181,900. E.12.13 a. 500,000*2=1,000,000 The number of shares of stock outstanding after four transaction is 1,000,000 b. Common Stock 500,000shares,$50par value 25,000,000 Additional paid-in capital:common stock 5,000,000 Dividend 50,000 Cash 50,000 Common Stock 1,000,000shares,$25par value 25,000,000 Additional paid-in capital:common stock 5,000,000 Dividend 600,000 Cash 600,000 From above the chart,we can know the cash the company paid in the four transaction is(600,000+50,000)=$650,000. c. I should own 200 shares of stock now after these transactions. So the result is better,because the profit from the stock price is (40-25)*200=$3,000;so I can receive $3,000 to offest a part of money for buying the stocks befroe.
Commom stock:0.5par value 2,000,000 shares Additional paid-in capital Dividend Payable Dividend Divendend Payable Cash Dividend Payable Dividend Retained Earnings Stock Dividend to be Distributed Additional paid-in capital Stock Dividend to be Distributed Common Stock
E12.7 a. Date Apr.30
Jun.1 July.1 Aug.1 Sept.10
50,000 b. 2,000,000*5%=100,000 100,000+2,000,000=2,100,000 So the number of shares of capital stock outstanding at year end is 2,100,000 shares. c. 1,000,000+50,000=1,050,000 1,050,000/2,100,000=0.5 At the end of year,the par value per share of stock is $0.5 d. Stock Split:the number of stocks increase 1,000,000;the par value decrease to $0.5, the total stockholders' equity has no effect. Declaration and payment of a cash dividend:Retained Earings and total stockholders'equity decrease,and the cash decrease too. Declaration and disbution of a stock dividend:Retained Earings decr ease,common stock and paid-in capital both increase,Number of share outstanding increase too,but the total stockholders'equity has no effect.