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XACC 291 Week 5 - E11-11 Lumley Corporation


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XACC 291 Week 5 Answer Guide

The following ACC 291 accounting study guide is designed to help students taking accounting principles II at the undergraduate level. 

What's Included in the Study Guide?

  • Full Solutions for E11-11 Lumley Corporation Memo
  • All Work Shown
  • Textbook: Financial accounting: Tools for business decision making
    7th Edition
  • Unlimited Additional Support from ACCNerd Accounting Experts

Preview of Solutions


From a review of the stockholders’ equity section, as chief accountant, write a memo

to the president of the company answering the following questions.


(a) How many shares of common stock are outstanding?

600,000 shares issued – 12,000 treasury shares  = 588,000 common shares outstanding

(b) Assuming there is a stated value, what is the stated value of the common stock?

(c) What is the par value of the preferred stock?

(d) If the annual dividend on preferred stock is $30,000,what is the dividend rate on  preferred stock?

(e) If dividends of $60,000 were in arrears on preferred stock, what would be the balance in Retained Earnings?


Get full solutions and tutoring support on the full study guide 

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