SHARPER CORPORATION

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Exercise 11-3 (Algo) Accounting for par, stated, and no-par stock issuances LO P1
Rodriguez Corporation issues 8,000 shares of its common stock for $69,600 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.

1. The stock has a $6 par value.
2. The stock has neither par nor stated value.
3. The stock has a $3 stated value.

● Record the issue of 8,000 shares of $6 par value common stock for $69,600 cash.
Note: Enter debits before credits.

 

Transaction General Journal Debit Credit
1

● Record the issue of 8,000 shares of no-par, no-stated value common stock for $69,600 cash.
Note: Enter debits before credits.

 

Transaction General Journal Debit Credit
2

● Record the issue of 8,000 shares of $3 stated value common stock for $69,600 cash.
Note: Enter debits before credits.

 

Transaction General Journal Debit Credit
3

Exercise 11-6 (Algo) Stock issuance for noncash assets LO P1
Sudoku Company issues 33,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $243,000 and the building at $372,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

Record the issue of 33,000 shares of $7 par value common stock in exchange for land valued at $243,000 and a building valued at $372,000.
Note: Enter debits before credits.

 

Transaction General Journal Debit Credit
1

QS 11-8 (Algo) Reporting a small stock dividend LO P2
The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 20% stock dividend. The stock’s per share market value on April 2 is $10 (prior to the dividend).
Prepare the stockholders’ equity section immediately after the stock dividend is distributed.

JUN COMPANY
Stockholders’ Equity
April 2 (after stock dividend)
Common stock
Paid-in capital in excess of par value, common stock
Total paid-in capital
Retained earnings
Total stockholders’ equity

Exercise 11-8 (Algo) Large stock dividend LO P2
Required information
Use the following information for the Exercises 8-9 below. (Algo)

On June 30, Sharper Corporation’s stockholders’ equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend.

Common stock—$10 par value, 82,000 shares issued and outstanding $ 820,000
Paid-in capital in excess of par value, common stock 360,000
Retained earnings 740,000
Total stockholders’ equity $ 1,920,000
(1) Prepare the updated stockholders’ equity section after the distribution is made.
(2) Compute the number of shares outstanding after the distribution is made.
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Sample Solution

increased pace of change that many of us have encountered over the past ten years has been dramatic. During the late 1980s, many of us were grappling with issues that we had never encountered. The accelerated use of leverages as means of increasing shareholder wealth left the balance sheet of some of America’s finest organizations in disarray. Many of largest customers, that for years represented minimal risk and required a minimum amount of time to manage, consumed most of our energy. By the end of 1993, many of these organizations had either resolved their financial troubles in bankruptcy court or no longer existed.

Organization need to settle down external environment and professional live to return a normal pace, many organizations initiated efforts to improve operating efficiency to become more competitive in the world marketplace. Inside forces include strategic and human resource change which drive organizations to adapt and evolve.

Forces of Change:

There are a number of forces both internal and external which affect organizational functioning. Any change of these factors necessitates change in an organization. The more important factors are as follows:

A. External factors:

External environment affects the organizations both directly and indirectly. The organizations do not have control over the variable in such environment. Accordingly, the organization cannot change the environment but must change themselves to align with the environment such as: Technology, Marketing Conditions and Political forces. Organizations is also affected by the world politics. Some of the changes in the world politics which have affected business all over the world are, the reunification of Germany, the break of Soviet Union and Iraq’s invasion of Kuwait. SWOT analysis identifies internal and external forces, strengths, weaknesses, opportunities and threats.

B. Internal factors:

Internal forces are too many and it is very difficult to list them comprehensively.

  • Nature of Workforce: The 1990’s has been described as a decade where organizations will have to learn to manage diversity. The new generation of workers are better educational qualifications, they place great emphasis on human values and question authority of managers. The employee turnover also became very high which put strain on the management. The work force is changing with rapid increase in the percentage of wome

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