Partnerships Book Jargon

EX 12-9 Par - price per shared assigned when given a stock certificate
EX 12-12
EX 12-16
EX 12-9 "Journal Entry"
Corporations Date Accounts and Explanation
PE 13-1A - Partner E, Capital
PE 13-3A Partner D, Capital
PE 13-4A To record purchase of partnership interest by new partner LD
PE 13-5A from existing partner ME

Ex 12-16 "Income Sharing Ratio JE"

Date Accounts and Explanation
March 31 Equipment
ADA
S, Capital
F, Capital
R, Capital
To record asset revaluation prior to withdrawal of Partner LS
 Debit Credit Ex 12-12 "Admitting a Partner"
70,000 J Capital T Capital S Capital
70,000 old bal 78,000 46,000
new partner LD rev. assets (neg)
subtotal 78,000 46,000

cont., L 32,000
bonus to partn -7,400 -7,400 14,800
new cap.bal 70,600 38,600 46,800

Debit Credit
22,300
1,300
9000
6,000
6,000
al of Partner LS
Total

156,000
Dividends per share for preferred and common stock (PE 13-1A) "Battle between Preferred and Common St

Year 1 Year 2 Year 3

Dividends distributed 70,000 200,000 320,000

Preferred dividends: (40,000 shares x 150$ par 70,000 120,000 120,000

Dividends in arrears (outstanding debt) 50,000
Preferred Stock Dividends 70,000 170,000 120,000

Dividends Distributed 70,000 200,000 320,000

Minus: Preferred Dividends 70,000 170,000 120,000
Common Stock Dividends - 30,000 200,000

Preferred Stock Dividends 70,000 170,000 120,000

Divided by: number of preferred stocks 40,000 40,000 40,000
Dividends per share for preferred stocks 1.75 4.25 3

Common Stock Dividends - 30,000 200,000

Divided by: number of common stocks 100,000 100,000 100,000
Dividends per share for common stocks - 0.3 2
etween Preferred and Common Stock"

Preferred Dividends Per Year = (Number of preferred stocks x

par value % of par) + dividends in arrears
40,000
stocks x 150 par x 2%
120,000

Deduct the total preferred dividends from the distributed dividends to determine
the remaining available for common stockholders

Dividends Per Share = (Dividends/ Number of Shares)

Journal Entry (Decleration, record, and payment dates in connection with cash dividend of 350,000)

Dates Account and Explanation Debit Credit

Feb 28 Cash Dividends 350,000
Cash dividends payable 350,000
To record the declaration of cash dividends

Apr 1 No entry

May 15 Cash dividends payable 350,000

Cash 350,000
To record payment of cash dividends declared
on Feb 28
dividend of 350,000)

On April 1 no entry is required because this is a cut-off date which the corporation
uses to determine which stock holders are entitled for the dividends
Journal Entry (PE 13-4A)

Dates Account and Explanation Debit Credit

9/2 Stock dividends 1,620,200
Stock dividends distributable 225,000
PIC in excess of par - common stock 1,395,000
To record the decleration of stock dividends

10/3 No entry

11/30 Stock dividends distributable 225,000

Common stock 225,000
To record the issuance of stock certs.
Calculate stock dividends
Stock dividends = (Number of Common Stock Outstanding x Stock Dividend Rate Declared)
x Market Price Per Share =
1,620,000

Calculate the stock dividends distributable

Stock Dividends Distributable = (Number of Common Stodk Outstanding x Stock Dividend
Rate Declared) x Par Value=
225,000

Calculate PIC by multiplying the number of common stock outstanding by the stock dividend rate declared, then mu
by the difference of the market price and par value of the stock
PIC in excess of Par - Common Stock - (Number of Common Stock Outstanding x Stock Dividend Rate)
x (Market Price Per Share - Par Value)
1,395,000
nd rate declared, then multiply the product

Dividend Rate)
Journal Entry (PE 13-5A) "Science of buyback stocks a.k.a. Treasury Stocks"

Dates Account and Explanation Debit Credit

1/31 Treasury stock 697,500
Cash 697,500
To record the purchase of 22,500 shares of treasury stock at 31

4/20 Cash 512,000

Treasury stock 396,800
PIC from sale of treasury stock 115,200
To record the sale of 12,800 shares of treasury stock at 40

Oct 4 Cash 271,600

PIC from sale of treasury stock 29,100
Treasury Stock 300,700
To record the sale of remaining 9,700 shares of treasury stock at 28
Treasury Stock = Number of Reacquired Shares x Purchase Price
697,500

Total Cash Received

April 20:
Cash Received = Number of Treasury Stock Shares Sold
512,000

October 4:
Same Form.
271,600

Treasury Stock = Number of Treasury Stock shares x Purhcase price

April 20 = 396,800
October 4 = 300,700

PIC from sale of treasury stock = Number of Treasury Stock Shares Sold x (Selling Price- Purhcase P
April 20 = 115,200
October 4= 29,100
(Selling Price- Purhcase Price