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E15-9 Capilal lUCK 600,000 (Issued 10,000 shares of $30 par value preferred stock at $60 per share) enoltouttent rollo ads n toognolok 15 Capital Stock S elder 15,000 Cash 15,000 (Purchased 1,000 sha

E15-9

Capilal lUCK
600,000
(Issued 10,000 shares of $30 par value preferred
stock at $60 per share)
enoltouttent
rollo ads n
toognolok
15
Capital Stock
S elder
15,000
Cash
15,000
(Purchased 1,000 shares of common stock for the
treasury at $15 per share)
31
Cash
8,500
Capital Stock
5,000
Gain on Sale of Stock
3,500
(Sold 500 shares of treasury stock at $17 per share)
Instructions
On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions.
E15-9 (LO1,3) (Preferred Stock Entries and Dividends) Otis Thorpe Corporation has 10,000 shares of $100 par value, 8%,
preferred stock and 50,000 shares of $10 par value common stock outstanding at December 31, 2017.
Instructions
Answer the questions in each of the following independent situations.
If the preferred stock is cumulative and dividends were last paid
on the preferred stock on December 31, 2014, what are
(a)
the dividends in arrears that should be reported on the December 31, 2017, balance sheet? How should these dividends
be reported?
1 1
II
1 1
I
814 Chapter 15 Stockholders' Equity
(b) If the preferred stock is convertible into seven shares of $10 par value common stock and 4,000 shares are converted,
what entry is required for the conversion assuming the preferred stock was issued at par value?
(c) If the preferred stock was issued at $107 per share, how should the preferred stock be reported in the stockholders
equity section?
E15-10 (LO2,4) (Analysis of Equity Data and Equity Section Preparation) For a recent 2-year period, the balance sheet of
Santana Dotson Company showed the following stockholders' equity data at December 31 (in millions)
2017
2016
1
Additional paid-in capital
borts $ 931
mo$ 817
540
omur UD
Common stock
545
io abit
DTPOH
sdt
22
7,167
1,564
23
5,226
Retained earnings
Treasury stock
918
Total stockholders' equity
$7,079
$5,665
Common stock shares issued
218
216
Common stock shares authorized
500
O500
6loss3
34
27
Treasury stock shares
noitoun
Instructions
(a) Answer the following questions.
(1) What is the par value of the common stock?
(2) What is the cost per share of treasury stock at December 31, 2017, and at December 31, 2016?
(b) Prepare the stockholders' equity section at December 31, 2017.
are selected transactions that may affect stockholders
E15-11 (LO3,4) (Equity Items on the Balance Sheet) The following

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