Q1
Carol Steven and Ruth borrowed $23,143 on a 7-month, 79% note from Gem State Bank to open their business, Sheridan’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023.
(a)-(b), (d)
Your answer is correct.
(a)Prepare a tabular summary to record the receipt of the funds from the loan.
{b}Prepare a tabular summary to accrue the interest on June 30.
(d)Prepare a tabular summary to record the repayment of the loan on January 1, 2023.
Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders’ Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset Liability or Equity item that was reduced.)
Q2
On January 1, Sunland Company issued $355,000, 9%, 20-year bonds at face value. Interest is payable annually on January 1. Include margin explanations for the changes in revenues and expenses.
Prepare a tabular summary to record the following events.
(a)The issuance of the bonds.
(b)The accrual of interest on December 31
(c)The payment of interest on January 1
(If a transaction causes a decrease in Assets, Liabilities or Stockholders’ Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Q3
Ivanhoe Company had these transactions during the current period.
June 12 Issued 82,500 shares of $1 par value common stock for cash of $309,375.
July 11Issued 3,450 shares of $100 par value preferred stock for cash at $104 per share
Nov. 28 Purchased 2,650 shares of treasury stock for $8,450.
Prepare a tabular summary to record the Ivanhoe Company transactions. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets Liabilities or Stockholders’ Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset Liability or Equity item that was reduced.)
Q4
The following accounts appear in the records of Marin Inc. at December 31, 2022.
Common Stock (no-par, $1 stated value,420,500 shares authorized,349,500 shares issued)$349,500
Paid-in Capital in Excess of Stated Value-Common Stock1,134,500
Preferred Stock ($50 par value, 89%, 41,600 shares authorized, 13,400 shares issued)670,000
Retained Earnings939,000
Treasury Stock (7,700 common shares)63,900
Paid-in Capital in Excess of Par Value-Preferred Stock30,000
Accumulated Other Comprehensive Loss32,700
Prepare the stockholders’ equity section at December 31. (Enter account name only and do not provide descriptive information.)
Q5
Suppose the following financial information is available for Walgreens.
| In millions | 2022 | 2021 |
| Average common stockholder’s equity | $9,200.0
|
8400 |
| Dividends declared for common stockholders | 460
|
420 |
| Dividend declared for preferred stockholders | 0
|
0 |
| Net income | 1840
|
2100 |
Calculate the payout ratio and return on common stockholders’ equity for 2022 and 2021. (Round answers to 1 decimal place, es 12.5%)
| 2022 | 2021 | |
| Payout ratio | % | % |
| Return on stockholders’ equity | % | % |