Problem 11-1

Peeler Company

Dr Cr
Jan-10 Cash 380000
Preferred stock 50000
Additional paid in capital-Preferred stock 10000
Common stock 20000
Additional paid in capital-Common stock 300000

Jan-20 Building site 70000

Common stock 5000
Additional paid in capital-Common stock 65000

2012 Treasury stock 30000

cash 30000

Later 2012 Treasury stock 6500

Cash 6500

Dec-31 Retained earnings 26500

Dividends payable-common 23000
Dividends payable-preferred 3500

Peeler Company
Statement of Stockholders' Equity
For the Year Ended December 31, 2012
Preferred stock,$100 par,7%,1000
authorised,500 issued 50000
Common stock,$5 par,10000 authorised, 5000
issued 25000
Additional paid in capital-Preferred 10000
Additional paid in capital-common 365000
Retained Earnings 13500
Total contributed capital and retained earnings 463500
Less Treasury 23500
Total Stockholders' equity 440000

Common Stock Preferred Stock

No.of shares aut 10000 1000
No.of shares iss 5000 500
Less Treasury St -500 0
Stock Re-issued 100 0
No.of shares out 4600 500
 Problem 11-6
Common stock,$5 par Additional Paid-In-Capital-Common
Balance on Jan 1 ,2012 0 0
Issuance of common & preferred stock for cash 20000 300000
Issuance of common stock for building 5000 65000
Purchase of treasury stock
Re-sale of stock 500 6000
Net Income
Preferred stock dividends
Common stock dividends
Balance on Dec 31,2012 25500 371000
Preferred stock,$100 par Additional Paid-In-Capital-Preferred Treasury stock Retained Earnings
0 0 0 0
50000 10000

-30000

40000
-3500
-23000
50000 10000 -30000 13500
Total Stockholder's equity
0
380000
70000
-30000
6500
40000
-3500
-23000
440000
Problem 11-13

Preferred stock,$30 par value,5000 shares authorized 120000

Common stock, 10000 shares authorized,7000 shares issued 70000
Additional Paid-In-Capital-Preferred 6000
Additional Paid-In-Capital-Common 560000
Additional Paid-In-Capital-Treasury stock 1000
Total Contributed Capital 757000
Retained Earnings 40000
Less:Treasury stock preferred ,100 shares -3200
Total Stockholder's equity 793800

1 No.of shares of preferred stock issued 4000

2 No.of shares of preferred stock outstanding 3900
3 Average per share sale price of preferred stock when issued 31.5
4 Par Value of Common Stock 10
5 Average per share sale price of common stock when issued 90
6 Cost of Treasury stock per share 32
7 Total stockholder's equity 793800
8 Per Share book value of the common stock 96.25714
 Problem 12-11 1

Glendive Corp.
Statement of Cash Flows
For the year Ended June 30, 2012
Cash flow from operating activities
Cash collection from cusromer $ 535,000
Cash payment for:
Inventory $ -328,000
Operating expenses $ -45,000
Interest $ -15,000
Income taxes $ -19,000
Total cash payments $ -407,000
Net cash provided by operating activities $ 128,000
Cash flows from investing activities
Purchase of plant $ -195,000
Sales of plant asset $ 25,000
Acquisition of Land $ -80,000
Net cash used by investing activities $ -250,000
Cash flows from finanacing activities
Bank loan paid $ -30,000
Issuance of common stock $ 150,000
Cash dividends paid $ -7,000
Net cash provided by financing activities $ 113,000
Net decrease in cash $ -9,000
Cash balance, June 30, 2011 $ 40,000
Cash balance, June 30, 2012 $ 31,000

Problem 12-11 2

Whether a company uses the direct or indirect method to report cash flows
from operationa is irrelevant because the amonut of cash flow from operating
activities is the same regardless of which method is used.

Recognition of net income to net cash provided by operating activities

Net Income to reconcile net income to net cash provided
Adjustments $ by operating33,000
activities:
Increase in account receivable $ -15,000
Decrease in Inventory $ 15,000
Decrease in prepaid rent $ 4,000
Increase in account payable $ 7,000
Increase in other accrued payable $ 6,000
Decrease in income taxes payable $ -2,000
Depreciation expense $ 75,000
Loss on sales of plant $ 5,000
Net cash provided by operating activities $ 128,000
 Account Rec Inc. Tax Payable
$ 75,000
$ 535,000 Cash Sales
Sales revenue $ 550,000 Cash Tax Pd ₹ 19,000
$ 90,000

Inventory Accounts Pay

$ 95,000

$ 350,000 Cost of goods sold

Inv. Add $ 335,000 Cash Pd. Inv. ₹ 328,000
$ 80,000
Inc. Tax Payable
₹ 10,000
₹ 17,000 Income tax expenses

₹ 8,000

Accounts Pay
₹ 148,000

₹ 335,000 Inv. Add

₹ 155,000
 Problem 12-12 1

Glendive Corp.
Statement of Cash Flows
For the year Ended June 30, 2012
Cash flow from operating activities
Net Income to reconcile net income to net cash provided
Adjustments $ by operating
33,000
activities:
Increase in account receivable $ -15,000
Decrease in Inventory $ 15,000
Decrease in prepaid rent $ 4,000
Increase in account payable $ 7,000
Increase in other accrued payable $ 6,000
Decrease in income taxes payable $ -2,000
Depreciation expense $ 75,000
Loss on sales of plant $ 5,000
Net cash provided by operating activities $ 128,000
Cash flows from investing activities
Purchase of plant $ -195,000
Sales of plant asset $ 25,000
Acquisition of Land $ -80,000
Net cash used by investing activities $ -250,000
Cash flows from finanacing activities
Bank loan paid $ -30,000
Issuance of common stock $ 150,000
Cash dividends paid $ -7,000
Net cash provided by financing activities $ 113,000
Net decrease in cash $ -9,000
Cash balance, June 30, 2011 $ 40,000
Cash balance, June 30, 2012 $ 31,000

Problem 12-12 2

Whether a company uses the direct or indirect method to report cash

flows from operationa is irrelevant because the amonut of cash flow
from operating activities is the same regardless of which method is used.