ACC291 W4 E11-15 P11-6A E12-2 E12-4

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Resources: Ch. 11 & 12 of Financial Accounting.

Complete Exercises E11-15, E12-2, & E12-4.

Complete Problem 11-6A.

E11-15 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.

.....so on.

P11-6A Arnold Corporation has been authorized to issue 40,000 shares of $100 par value, 8%,
noncumulative preferred stock and 2,000,000 shares of no-par common stock. The corporation
assigned a $5 stated value to the common stock. At December 31, 2011, the ledger contained the
following balances pertaining to stockholders’ equity.

Preferred Stock $ 240,000
Paid-in Capital in Excess of Par Value—Preferred 56,000
Common Stock 2,000,000
Paid-in Capital in Excess of Stated Value—Common 5,700,000
Treasury Stock—Common (1,000 shares) 22,000
Paid-in Capital from Treasury Stock 3,000
Retained Earnings 560,000

The preferred stock was issued for land having a fair market value of $296,000.All common stock
issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury
at a per share cost of $22. In December, 500 shares of treasury stock were sold for $28 per share.
No dividends were declared in 2011.

so on .....

E12-2 Foren Corporation had the following transactions pertaining to debt investments.

Jan. 1 Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of
$900. Interest is payable semiannually on July 1 and January 1.

July 1 Received semiannual interest on Choate Co. bonds.

July 1 Sold 30 Choate Co. bonds for $34,000 less $500 brokerage fees.

Iso on ....

E12-4 Dossett Company had the following transactions pertaining to stock investments.

Feb. 1 Purchased 600 shares of Goetz common stock (2%) for $6,000 cash, plus brokerage
fees of $200.

July 1 Received cash dividends of $1 per share on Goetz common stock.

Sept. 1 Sold 300 shares of Goetz common stock for $4,400, less brokerage fees of $100.

Dec. 1 Received cash dividends of $1 per share on Goetz common stock.

so on ....