Business Finance Homework Help

Excel file will be attached for some of the questions

Question 1: Doc Corporation was authorized to issue 150,000 shares of common stock.

Required:

Give the general journal entry for each case in the attached Workpaper #1.

1. 3. 1. 24,000 shares of common stock were issued for $19 per share cash. The common stock has a $4 per share par value.
      2. 24,000 shares of common stock were issued for $19 per share cash. The common stock has no par or stated value.
      3. 24,000 shares of common stock were issued for $19 per share cash. The common stock has a $13 per share stated value.

      Question 2: Sleepy Company was authorized to issue 200,000 shares of $6-par value common stock and 60,000 shares of $150-par value preferred stock.Required:Part A: Give the general journal entry required to record the following transactions for Sleepy Company in the attached Workpaper #2.

      1. Issued 45,000 shares of common stock for $13 per share cash.
      2. Issued 20,000 shares of common stock for $16 per share cash.
      3. Issued 15,000 shares of common stock in exchange for land. On the date of the exchange, the common stock had a market price of $18 per share.
      4. Issued 60,000 shares of preferred stock for $160 per share cash.

      Part B: Answer the following questions, based on your journal entries.

      1. How many shares of common stock are outstanding? shares
      2. How many shares of preferred stock are outstanding? shares
      3. What is the total legal capital for Sleepy after the 4 transactions?
      4. What is the total paid-in capital for Sleepy after the 4 transactions?

      Question 4: Grumpy Corporation has the following stockholders’ equity on December 31, 2020:

      Common Stock ($7-par value, 140,000 shares authorized, 90,000 shares issued and outstanding	$630,000
      Additional Paid-In Capital in Excess of Par Value	1,840,000
      Total Paid-in Capital	$2,470,000
      Retained Earnings	3,160,000
      Total Stockholders’ Equity	$5,630,000

      Required:Part A: Give the general journal entry required to record the following treasury stock transactions for the year 2021 in the attached Workpaper #3.

      1. 1. 1. Grumpy purchased back 18,000 shares of its own common stock as treasury shares for $26 per share cash.
            2. Grumpy re-issued 3,000 treasury shares for $24 per share cash.
            3. Grumpy re-issued 4,000 treasury shares for $19 per share cash.
            4. Grumpy re-issued 1,000 treasury shares for $21 per share cash.
            5. Grumpy re-issued 5,000 treasury shares for $25 per share cash.
            6. Grumpy re-issued 3,000 treasury shares for $22 per share cash.

            Part B: Answer the following questions as of the end of 2021. Net income for the year is $780,000. No other stockholders’ equity transactions took place during the year. (You may want to draw T-acounts, enter the beginning balances, and then post your entries).

            1. 1. 1. How many shares of common stock are authorized? shares
                  2. How many shares of common stock are issued? shares
                  3. How many shares of common stock are outstanding? shares
                  4. What is Total Paid-In Capital at the end of 2021?
                  5. What is the Retained Earnings at the end of 2021?
                  6. What is Total Stockholders’ Equity at the end of 2021?

                  Question 6: Bashful Corporation has the following stockholders’ equity on December 12, 2020:

                  Common Stock ($11-par value, 700,000 shares authorized, 110,000 shares issued and outstanding	$1,210,000
                  Additional Paid-In Capital in Excess of Par Value	3,840,000
                  Total Paid-in Capital	$5,050,000
                  Retained Earnings	7,130,000
                  Total Stockholders’ Equity	$12,180,000

                  On December 12, the market price of Bashful Corporation’s common stock was $330 per share.Required:For each of the following INDEPENDENT cases in the attached Workpaper #4:

                  • give the general journal entries required (if any) for December 12, December 22, and December 31
                  • then indicate the new stockholders’ equity items as of December 31.
                  1. 1. 1. On December 12, 2020, Bashful declared a $5 per share cash dividend, payable on December 31, to shareholders of record on December 22.
                        2. On December 12, 2020, Bashful declared a 7% stock dividend, distributable on December 31 to shareholders of record on December 22.
                        3. On December 12, 2020, Bashful declared a 500% stock dividend, distributable on December 31 to shareholders of record on December 22.
                        4. On December 12, 2020, Bashful declared an 11 for 1 stock split effective on December 31, 2020.

                        Question 7 (NO EXCEL FILE):

                     Use the Bashful Corporation information from the previous question to answer the following questions: You are a shareholder in Bashful Corporation who owns 1,000 shares of Bashful Corporation stock. Describe the effect that each transaction in the prior question would have on you as a shareholder:

                     1. 1. 1. a $5 per share cash dividend
                           2. a 7% stock dividend
                           3. a 500% stock dividend
                           4. an 11 for 1 Stock Split