Towson Corp., was organized on January 2, 2018. During the first year of operation, Towson issued 70,000 shares of $9 par value common stock at a price of $45 cash per share.
1-Towson Corp., was organized on January 2, 2018. During the first year of operation, Towson issued
70,000 shares of $9 par value common stock at a price of $45 cash per share. On December 31, 2018, Towson reported Net Income of $250,000 and paid $50,000 cash dividends. Use this information to determine the dollar amounts that Towson will report on its year end Balance Sheet for Paid in Capital Common Stock in Excess to par.
2-Towson Corp., had 6,000 shares of $100 par, 5% cumulative preferred stock as of January 1, 2018. No additional shares of preferred stock were issued during fiscal years 2018 & 2019. Dividends were paid to common shareholders in 2017 but no shareholders were paid dividends in 2018. A total of $80,000 of dividends was paid in 2019. Use this information to determine the total dollar amount of dividends that was paid to common shareholders during fiscal year 2019.
3-On January 2, 2018, the first year of operations, Brunswick Corp., issued 15,000 shares of $10 par value common stock for $15 per share. On July 1, 2018, 2,000 of these shares were reacquired for $17 each. On September 1, 2018 Brunswick Corp. reissued 900 shares of its treasury stock for $22 per share. No other stock transactions occurred during the rest of fiscal year 2018. Use this information to determine the dollar amount that Brunswick Corp. will report on its fiscal year 2018 Balance Sheet for Paid in Capital Treasury Stock.
4-On August 1, 2018, Towson Corp., declared a 10% stock dividend on its common stock when the market value of the common stock was $14 per share. The balance in the common stock account, before the stock dividend was declared, was $1,100,000. The par value of all common stock is $10. What is the total dollar amount credited to additional paid in capital – common stock on August 1, 2018?
5-Arundel Company uses percentage of sales to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance of $78,000 and had a total of $750,000 in credit sales. Arundel assumes that 1.5% of sales will eventually be uncollectible. before adjustment, the Allowance for Uncollectible Accounts had a credit balance of 4,000. What dollar amount should be credited to Allowance for Uncollectible Accounts at year end?
6-Adelphi Company purchased a machine on January 1, 2017, for $50,000. The machine was estimated to have a service life of ten years with an estimated residual value of $5,000. Adelphi sold the machine on January 1, 2021 for $23,000. Adelphi uses the double declining method for depreciation. Using this information, how much is the gain or (loss) for the equipment sale entry made on January 1, 2021. Enter a loss as a negative number.
7-Barbara is an employee of Baltimore Company. Baltimore Company pays employees the Friday after the wages are earned. Overtime in excess of 40 hours must be paid at 150% of the normal hourly rate. Social Security taxes are 6.2% and Medicare taxes are 1.45%. The federal unemployment tax rate is 1.2% and the state unemployment tax rate is 4.0%. Barbara’s wages, including the current pay period, will not exceed the limits for Social Security, Medicare and unemployment taxes. Barbara earns $16 per hour and worked 46 hours for the week ended January 13 , 2019. Baltimore will withhold $220 federal income taxes. Use this information to determine the total payroll tax expense for Baltimore Company as related to Barbara’s earnings. (Round to the closest cent)
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