2024 – Question 1 Indicate whether each of the following statements is true or

Question 1

Indicate whether each of the following statements is true or false.

Question 2

Garcia Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation’s capital stock.

On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 3

Prepare a tabular summary of the effects of the alternative actions on the company’s stockholders’ equity and outstanding shares.

Question 4

What is the par or stated value per share of Tootsie Roll’s common stock? (Round answer to 4 decimal places, e.g. 1.2531.)

What percentage of Tootsie Roll’s authorized common stock was issued at December 31, 2011? (Round to 0 decimal places, e.g. 17%)

How many shares of common stock were outstanding at December 31, 2010, and at December 31, 2011? (Enter the answers in thousands.)

Calculate the payout ratio, earnings per share, and return on common stockholders’ equity for 2011. (Round earnings per share to 2 decimal places, e.g. 15.12 and all other answers to 1 decimal places, e.g. 12.5%.)

Question 5

Question 1

Indicate whether each of the following statements is true or false.

Question 2

Garcia Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation’s capital stock.

On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Question 3

Prepare a tabular summary of the effects of the alternative actions on the company’s stockholders’ equity and outstanding shares.

Question 4

What is the par or stated value per share of Tootsie Roll’s common stock? (Round answer to 4 decimal places, e.g. 1.2531.)

What percentage of Tootsie Roll’s authorized common stock was issued at December 31, 2011? (Round to 0 decimal places, e.g. 17%)

How many shares of common stock were outstanding at December 31, 2010, and at December 31, 2011? (Enter the answers in thousands.)

Calculate the payout ratio, earnings per share, and return on common stockholders’ equity for 2011. (Round earnings per share to 2 decimal places, e.g. 15.12 and all other answers to 1 decimal places, e.g. 12.5%.)

Question 5

Based on the information in these financial statements, compute the 2011 return on common stockholders’ equity, debt to assets ratio, and return on assets for each company. (Round answers to 1 decimal places, e.g. 15.2%.)

Compute the payout ratio for each company. Which pays out a higher percentage of its earnings? (Round answers to 1 decimal places, e.g. 15.2%.)

Which pays out a higher percentage of its earnings?

Question 6

Prepare the journal entries for the following. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the stockholders’ equity section of the balance sheet at December 31, 2014.

Question 7

Journalize the transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Enter the beginning balances and post the entries to the stockholders’ equity T-accounts. (Post entries in the order of journal entries posted in the previous part)

Prepare the stockholders’ equity section of the balance sheet at December 31.

Calculate the payout ratio and return on common stockholders’ equity. (Round answers to 1 decimal place, e.g. 12.5%.)