Updated for 2017 Contact | support@accnerd.com |

ACCNerd

XACC 291 Week 5 - E11-11 Lumley Corporation

$4.99

Need more details? Contact Us for Personal Support

Description

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

LUMLEY CORPORATION

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

to the president of the company answering the following questions.

Solution: 

(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 

Need additional help? Just shoot us an email or contact us via live chat. Our expert accounting tutors are standing by to help you get better grades. 

 

Back to Top