Accounting Equation, Smith Jones Marketing Company, Combs Company, Hutch Corporation

1) Show how each of the following transactions affects the accounting equation:

June 1 Issued 60,000 shares of $0.04 par value common stock for cash of $110,600

August 1 Issued 2,500 shares of $105 par value preferred stock for cash of $154 a share

 

2) Smith Jones Marketing Company has 3,000 shares of nine-percent, $60 par cumulative preferred stock outstanding and 4,900 shares of $3.75 par value common stock outstanding. The company began operations on April 1, 2010. The Cash dividends declared and paid during each of the first 3 years of smith Jones Marketing operations are shown. Calculate the amounts that went to the preferred and the common shareholders (SHs) each year.

 

3) Combs Company purchased back 11,000 shares of their $8 par value common stock for 98,000 on May 1, 2012. On Aug 1, 2011 they reissued those shares for $109,000. Please show the affect of both transactions on the accounting equation.

 

4) Hutch Corporation finished their fiscal year ending 3/31/2010 with $88,000 of net income. They issued dividends of 22,000 at year end. At the of year on 3/31/2011, they had a net loss of ($46,000)and did not distribute any dividends. In the fiscal year ending 3/31/2012 their net income was 55,000 and dividend ends were 15,000. What is the projected ending retained earnings balance as of 3/31/2012 assuming that 2010 was their first year of business.