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1.)

Pearl Companys ledger shows the following balances on December 31, 2020.

8% Preferred Stock$10 par value, outstanding 20,700 shares		$ 207,000
Common Stock$100 par value, outstanding 30,300 shares		3,030,000
Retained Earnings		654,000

Assuming that the directors decide to declare total dividends in the amount of $332,000, determine how much each class of stock should receive under each of the conditions stated below. One years dividends are in arrears on the preferred stock. (a) The preferred stock is cumulative and fully participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)

Preferred		Common
$		$

(b) The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.)

Preferred		Common
$		$

(c) The preferred stock is noncumulative and is participating in distributions in excess of a 10% dividend rate on the common stock. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)

Preferred		Common
$		$

2.)

Before Wildhorse Corporation engages in the following treasury stock transactions, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share).

Paid-in Capital in Excess of ParCommon Stock		Common Stock		Retained Earnings
$99,400		$244,800		$74,600

Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(a)		Bought 400 shares of treasury stock at $41 per share.
(b)		Bought 280 shares of treasury stock at $44 per share.
(c)		Sold 370 shares of treasury stock at $43 per share.
(d)		Sold 100 shares of treasury stock at $39 per share.

No.	Account Titles and Explanation	Debit	Credit
(a)
(b)
(c)
(d)

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