1 CSCI-2400 Models of Computation. 2 Computation CPU memory.
Supporting Computation (1)
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8/19/2019 Supporting Computation (1) http://slidepdf.com/reader/full/supporting-computation-1 1/5 PROBLEM NO. 1 - Resolve Corporation Date Particulars 12.31.05 (Debit) Cr edit Balance Preferred stock 1/31 3,000,000 3,420,000 8/30 420,000 Common stock 1/1 15,000 204,000 (1) C 2/20 90,000 8/30 18,000 8/30 21,000 11/07 60,000 Subscribed common stock 5/30 120,000 60,000 11/07 (60,000) Subscription receivable 5/30 (5,400,000) (1,200,000) 11/07 4,200,000 Additional pai d in capital - pre ferred 1/31 1,500,000 1,545,000 (2) C 1/31 (225,000) 8/30 270,000 Additional pai d in capital - common 1/1 705,000 10,851,000 (3) C 2/20 3,420,000 2/20 (75,000) 5/30 5,280,000 8/30 702,000 8/30 819,000 Retained earnings 12/01 (870,000) 930,000 (4) D 12/31 1,800,000 15,810,000 (5) B Journal entries for 2005 1/1 Property 510,000 Organization expenses 210,000 Common stock (1,500 shares x P10) 15,000 APIC - excess over pa r of common stock 705,000 1/31 Cash (30,000 shares x P150) 4,500,000 Preferred stock (30,000 shares x P100) 3,000,000 APIC - excess over pa r of preferr ed stock 1,500,000 APIC - excess over pa r of preferr ed stock 225,000 Cash 225,000 2/20 Cash (9,000 shares x P390) 3,510,000 Common stock (9,000 shares x P10) 90,000 APIC - excess over pa r of common stock 3,420,000 APIC - excess over par of common stock 75,000 Cash 75,000 5/30 Subscriptions receivable (12,000 shares x P450) 5,400,000 Subscribed common stock (12,000 shares x P10) 120,000 APIC - excess over pa r of common stock 5,280,000 8/30 Cash 720,000 Common stock (1,800 shares x P10) 18,000 APIC - excess over pa r of common stock 702,000 Building 1,530,000 Common stock (2,100 shares x P10) 21,000 APIC - excess over pa r of common [(2,100 sh x P400*)-21,00 0] 819,000 Preferred stock (4,200 shares x P100) 420,000 APIC - excess over pa r of prefer red stock (balan ce) 270,000 '* (P720,000/1,800 shares) 11/07 Cash 4,200,000 Subscriptions receivable 4,200,000 Subscribed common stock (12,000 shares x P10 x 1/2) 60 ,0 00 Common stock 60,000 12/01 Retained earnings 870,000 Dividends payable - Preferred 342,000 * Dividends payable - Common 528,000 ** * (P3,420,000/P100 x P10) ** {[(P204,000 + P60,000)/P10] x P20} 12/31 Income summary 1,800,000 Retained earnings 1,800,000 AP-5801Q
Transcript of Supporting Computation (1)
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PROBLEM NO. 1 - Resolve Corporation
Date Particulars 12.31.05
(Debit) Cr edit Balanc e
Preferred stock 1/31 3,000,000 3,420,000
8/30 420,000
Common stock 1/1 15,000 204,000 (1) C
2/20 90,000
8/30 18,000
8/30 21,000
11/07 60,000
Subscribed common stock 5/30 120,000 60,000
11/07 (60,000)
Subscription receivable 5/30 (5,400,000) (1,200,000)
11/07 4,200,000
Additional paid in capital - preferred 1/31 1,500,000 1,545,000 (2) C
1/31 (225,000)
8/30 270,000
Additional paid in capital - common 1/1 705,000 10,851,000 (3) C
2/20 3,420,000
2/20 (75,000)
5/30 5,280,000
8/30 702,000
8/30 819,000
Retained earnings 12/01 (870,000) 930,000 (4) D
12/31 1,800,000
15,810,000 (5) B
Journal entries for 2005
1/1 Property 510,000
Organization expenses 210,000
Common stock (1,500 shares x P10) 15,000
APIC - excess over par of common stock 705,000
1/31 Cash (30,000 shares x P150) 4,500,000
Preferred stock (30,000 shares x P100) 3,000,000
APIC - excess over par of preferred stock 1,500,000
APIC - excess over par of preferred stock 225,000 Cash 225,000
2/20 Cash (9,000 shares x P390) 3,510,000
Common stock (9,000 shares x P10) 90,000
APIC - excess over par of common stock 3,420,000
APIC - excess over par of common stock 75,000
Cash 75,000
5/30 Subscriptions receivable (12,000 shares x P450) 5,400,000
Subscribed common stock (12,000 shares x P10) 120,000
APIC - excess over par of common stock 5,280,000
8/30 Cash 720,000
Common stock (1,800 shares x P10) 18,000
APIC - excess over par of common stock 702,000
Building 1,530,000
Common stock (2,100 shares x P10) 21,000
APIC - excess over par of common [(2,100 sh x P400*)-21,000] 819,000
Preferred stock (4,200 shares x P100) 420,000
APIC - excess over par of preferred stock (balance) 270,000
'* (P720,000/1,800 shares)
11/07 Cash 4,200,000
Subscriptions receivable 4,200,000
Subscribed common stock (12,000 shares x P10 x 1/2) 60,000
Common stock 60,000
12/01 Retained earnings 870,000
Dividends payable - Preferred 342,000 *
Dividends payable - Common 528,000 **
* (P3,420,000/P100 x P10)
** {[(P204,000 + P60,000)/P10] x P20}
12/31 Income summary 1,800,000
Retained earnings 1,800,000
AP-5801Q
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PROBLEM NO. 2 - Perseverance Corporation
2005
12.31.04 Transactions 12.31.05
Preferred stock 600,000 600,000 1 D
Common stock 1,800,000 (2) 216,000 2,016,000 2 B
Additional paid in capital 300,000 (1) 9,000 864,000 3 B
(2) 54,000
(7) 450,000
(7) 51,000 Retained earnings - appropriated 198,000 (5) 60,000 303,000 4 B
(9) 45,000
Retained earnings - unappropriated 2,250,000 (2) (270,000) 2,578,500 5 C
(3) (57,000)
(5) (60,000)
(7) (501,000)
(8) 1,261,500
(9) (45,000)
Treasury stock - preferred (90,000) (1) 45,000 (45,000) 6 C
5,058,000 6,316,500 7 A
Journal entries for 2005 affecting stockholders' equity accounts:
(1) Cash (3,000 shares x P18) 54,000
Treasury stock-preferred [(90,000/ 6,000 shares) x 3,000] 45,000
APIC - from treasury stock transactions 9,000
(2) Retained earnings - unappropriated 270,000
Common stock (54,000 shares x P4) 216,000
APIC - excess over par 54,000
Preferred stock issued, 12/31/05 60,000
Treasury shares 12/31/05 (6,000)
Number of shares issued and outstanding 54,000
Dividends per share 5.00 Total dividends 270,000
(3) Retained earnings - unappropriated 57,000
Dividends payable 57,000
Preferred stock issued 12/01/05 60,000
Treasury shares 12/01/05 (6,000 - 3,000) (3,000)
Number of shares issued and outstanding 57,000
Dividends per share 1.00
Total dividends 57,000
(4)
(5) Retained earnings - unappropriated 60,000
Retained earnings - appropriated 60,000
(6) See number 8
(7) Retained earnings - unappropriated 501,000
APIC - donated capital 450,000
APIC - from treasury stock transactions 51,000
(8) Income summary 1,261,500
Retained earnings - unappropriated 1,261,500
Net income per company's records 1,297,500
Fire loss charged to reserve for fire insurance (30,000)
Estimated fire clean up cost (6,000)
Adjusted net income 1,261,500
(9) Retained earnings - unappropriated 45,000
Retained earnings - appropriated for TS 45,000
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PROBLEM NO. 3 - Willpower Corporation
2005
12.31.04 Transactions 12.31.05
Preferred stock 4,050,000 1 810,000 4,698,000 (1) C
3 (162,000)
Common stock 9,000,000 2 4,725,000 13,725,000 (2) D
Additional paid in capital 4,320,000 1 270,000 6,814,800 (3) D
2 1,890,000
3 (43,200) 6 135,000
7 243,000
Retained earnings - appropriated - 10 540,000 540,000
Retained earnings - unappropriated 1,395,000 3 (37,800) 1,711,440 (4) B
8 (1,625,760)
9 2,520,000
10 (540,000)
Treasury stock - 4 (1,080,000) (540,000)
6 540,000
18,765,000 26,949,240 (5) A
Journal entries for 2005
1) Cash (27,000 shares x P40) 1,080,000
Preferred stock (27,000 shares x P30) 810,000
APIC - premium on preferred stock 270,000
2) Cash (94,500 shares x P70) 6,615,000
Common stock (94,500 shares x P50) 4,725,000
APIC - premium on common stock 1,890,000
3) Preferred stock (5,400 shares x P30) 162,000
APIC - premium on PS (P1,080,000 x 5,400/135,00 43,200
Retained earnings 37,800
Cash (5,400 shares x P45) 243,000
4) Treasury stock-CS (13,500 shares x P80) 1,080,000
Cash 1,080,000 5) Memo entry
6) Cash (13,500 shares x P50) 675,000
Treasury stock (P1,080,000 x 1/2) 540,000
APIC - from treasury stock transactions 135,000
7) Memo entry
Cash (9,000 shares x 1/2 x P54) 243,000
APIC - Donated capital 243,000
8) Retained earnings 1,625,760
Cash 1,625,760
Common shares issued and outstanding, 1/1/05 180,000
2) Shares issued 94,500
4) Purchase of treasury shares (13,500)
261,000
5) Stock split 261,000
6) Reissuance of treasury shares 13,500
7) Donated shares (9,000)
Reissuance of donated sh 4,500
Common shares issued and outstanding 531,000
x Dividend per share 2
Dividends to common 1,062,000
Dividends to preferred (PS balance x 12%) 563,760
Total 1,625,760
9) Income summary 2,520,000
Retained earnings 2,520,000
10) Retained earnings 540,000
Retained earnings - appropriated (cost of TS) 540,000
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PROBLEM NO. 4 - Grit Corporation
04-05
6.1.04 Transactions 5.31.05
Preferred stock - 2 30,000,000 -
4 (30,000,000)
Common stock - 2 2,100,000 5,100,000 1 C
4 3,000,000
Subscribed PS - 1 30,000,000 -
2 (30,000,000)
Subsriprions receivable-PS - 1 (31,500,000) -
1 9,450,000
2 22,050,000
Subscribed CS - 1 2,250,000 -
2 (2,100,000)
2 (150,000)
Subsriprions receivable-CS - 1 (23,400,000) (0)
1 7,020,000
2 15,288,000
2 1,092,000
Additional paid in capital - 1 22,650,000 48,340,000 2 B
2 (1,410,000)
4 (1,500,000)
4 28,500,000 5 100,000
Total contributed capital - 53,440,000 3 B
Retained earnings - 6 830,000 830,000
Treasury stock - common - 3 (4,200,000) -
5 4,200,000
- 54,270,000 4 A
Journal entries for 2004-2005 affecting stockholders' equity accounts:
1 Subscriptions receivable - PS (300,000 x P105) 31,500,000
Subscriptions receivable - CS (900,000 x P26) 23,400,000
Subscribed PS (300,000 x P100) 30,000,000
Subscribed CS (900,000 x P2.5) 2,250,000
APIC 22,650,000
Cash 16,470,000
Subscriptions receivable - PS (300,000 x P105 x 30%) 9,450,000
Subscriptions receivable - CS (900,000 x P26 x 30%) 7,020,000
2 Cash 37,338,000
Subscriptions receivable - PS (300,000 x P105 x 70%) 22,050,000
Subscriptions receivable - CS [(900,000-60,000) x P26 x 70%] 15,288,000
Subscribed PS (300,000 x P100) 30,000,000
Subscribed CS [(900,000-60,000) x P2.5] 2,100,000
Preferred stock 30,000,000
Common stock 2,100,000
Subscribed CS (60,000 x P2.5) 150,000
APIC [60,000 x (P26-P2.5)] 1,410,000
Subscriptions receivable - CS (60,000 x P26 x 70%) 1,092,000
Cash (60,000 x P26 x 30%) 468,000
3 Treasury stock 4,200,000
Cash (150,000 shares x P28) 4,200,000
4 Preferred stock 30,000,000
APIC [300,000 x (P105-P100)] 1,500,000
Common stock (300,000 x 4 x P2.5) 3,000,000
APIC 28,500,000
5 Machinery 4,300,000 Treasury stock 4,200,000
APIC 100,000
6 Memo entry.
7 Income summary 830,000
Retained earnings 830,000
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PROBLEM NO. 5 - Stamina Farms
Requirement No. 1 - A
Capital stock (40,000 x P100) 4,000,000
Retained earnings: 1,600,000
Beginning 1,400,000
Net income for 2005 3,000,000
Total stockholders equity 7,000,000
Divide by number of shares outstanding 40,000
Book value per share 175
Requirement No. 2 - A
Value of the shares to be surrendered (6,000 x P175) 1,050,000
Amount of cash shortage 600,000
Amount to be paid to the treasurer 450,000
Requirement No. 3 - A
Retained earnings before dividends 3,000,000
Dividends to remaining stockholders (value of shares surrendered) (1,050,000) Retained earnings after dividends 1,950,000
