Reference no: EM132270507
Questions -
Q1. Alpha Corp., was organized on January 2, 2018. During the first year of operation, ALPHA issued 70,000 shares of $3 par value common stock at a price of $35 cash per share. On December 31, 2018, Alpha reported Net Income of $250,000 and paid $50,000 cash dividends. Use this information to determine the dollar amounts that Alpha will report on its yearend Balance Sheet for Paid in Capital Common Stock in Excess to par.
Q2. Alpha Corp., had 3,000 shares of $100 par, 5% cumulative preferred stock as of January 1, 2018. No additional shares of preferred stock were issued during fiscal years 2018 & 2019. Dividends were paid to common shareholders in 2017 but no shareholders were paid dividends in 2018. A total of $85,000 of dividends was paid in 2019. Use this information to determine the total dollar amount of dividends that was paid to common shareholders during fiscal year 2019.
Q3. On January 2, 2018, the first year of operations, Alpha Corp., issued 15,000 shares of $10 par value common stock for $15 per share. On July 1, 2018, Beta Corp., 2,000 of these shares were reacquired for $19 each. On September 1, 2018 Alpha Corp. reissued 700 shares of its treasury stock for $23 per share. No other stock transactions occurred during the rest of fiscal year 2018. Use this information to determine the dollar amount that Beta will report on its fiscal year 2018 Balance Sheet for Paid in Capital Treasury Stock.
Q4. Clara is an employee of Century Company. Century Company pays employees the Friday after the wages are earned. Overtime in excess of 40 hours must be paid at 150% of the normal hourly rate. Social Security taxes are 6.2% and Medicare taxes are 1.45%. The federal unemployment tax rate is 1.2% and the state unemployment tax rate is 3.5%. Clara's wages, including the current pay period, will not exceed the limits for Social Security, Medicare and unemployment taxes. Clara earns $17 per hour and worked 46 hours for the week ended January 13, 2019. Century will withhold $220 federal income taxes. Use this information to determine the total payroll tax expense for Century Company as related to Clara's earnings. (Round to the closest cent).