Reference no: EM133986
Question :
1. John company has 490,000 shares of $10 par value general stock outstanding. During the year, John declared a 10% stock dividend when the market price of the stock was $30 per share. Four months later, John declared a $.50 per share cash dividend. As a result of the dividends declared through the year, retained earnings decrease by what amount?
2. On 1st December, 2012, Mary Corporation exchanged 30,000 shares of its $10 per value general stock held in treasury for a used machine. The treasury shares were acquired by Mary at a cost of $40 per share, and are accounted for under the cost technique. On the date of the exchange, the general stock had a fair value of $55 per share (the shares were initially issued at $30 per share). As a result of this exchange, Mary's total stockholders' equity will increase by what amount?
3. At the starting of 2013, George company had retained earnings of $180,000. Through the year George reported total income of $75,000, sold treasury stock at a "gain" of $27,000, declared cash dividend of $45,000, and declared and issued a small stock dividend of 1,500 shares ($10 par value) when the fair value of the stock was $30 per share. Evaluate the amount of retained earnings available for dividends at the end of 2013?
4. David company issued 100,000 shares of $10 par general stock for $1,200,000. David acquired 10,000 shares of its own general stock at $15 per share. Three months later David sold 5,000 of these shares at $19 per share. If the cost technique is used to record treasury stock transactions, to record the sale of the 5,000 treasury shares, David should credit what amount(s)?
5. Peter corporation earned total income of $583,918 in 2012 and had 175,000 shares of general stock outstanding throughout the year. Also outstanding all year was $858,000 of 10 percent bonds, which are convertible into 18,000 shares of common. Peter's tax rate is 36%. Evaluate Peter's 2012 diluted earnings per share.