Homework Part I

1. Chapter 13 Homework Part I

2. S13-6 1. Millions Common stock, December 31, 2002.........��. $ 875 Common stock, December 31, 2001..........�� 873 Increase during 2002.......................���� $ 2 Paid-in capital in excess of par, December 31, 2002 $3,855 Paid-in capital in excess of par, December 31, 2001�����������. 3,520 Increase during 2002.........................���. 335 Total increase in paid-in capital during 2002.. $337 Coca-Cola must have issued common stock during 2002, as shown by the increase in the Common Stock account. 2.Coca-Cola had a profit during 2002, as indicated by the increase in Retained Earnings.

3. S13-10

4. E13-3

5. E13-3

6. E13-3 Stockholders� Equity Paid-in capital: Preferred stock, $3, no-par, 100,000 shares authorized, 300 shares issued������.. $20,000 Common stock, $1 par, 500,000 sharesauthorized, 1,500 shares issued�����. 1,500 Paid-in capital in excess of par�common���������������� 39,500 Total paid-in capital����������� 61,000 Retained earnings������������... 25,000 Total stockholders� equity��������� $86,000

7. E13-4

8. 13-2A

9. 13-2A Stockholders� Equity Paid-in capital: Preferred stock, 6%, $100 par, 10,000 shares authorized, 1,100 shares issued $110,000 Common stock, no-par, 250,000 shares authorized, 11,600*shares issued 116,000 Total paid-in capital 226,000 Retained earnings 40,000 Total stockholders� equity $266,000

10. 13-3A Req. 1 5% is the annual dividend rate on the preferred stock. Annual dividend on 1,000 shares = $500 ($10 par ? .05 ? 1,000 shares) Req. 2 Issue price of common stock during 20X4 = $5 per share ($20,000 + $30,000) / 10,000 shares.

11. 13-3A Req. 3 First-year operations were not profitable, as shown by the deficit in Retained Earnings.

12. 13-3A

13. 13-3 AReq. 5 (Stockholders� equity at December 31, 20X5)