Thank you
Task 5 BACC 518 Summer 2021 NOTE: Please READ and FOLLOW the Fillable PDF instructions posted on BB. Answer the questions for each chapter by using the Task 5 WB. Chapter 13: Common Stock Issuance 1. Better Corp. issues stock to its shareholders throughout 2019, its first year of operation. It is authorized to issue 1 million shares. The stock’s par value is $1 per share. The firm provides the following data regarding Jan. – April stock transactions. Answer the following questions, using the Task 5 WB – WS1. Enter the following data in the cells B3:C6. Answer the following questions: 1. What was the number of Common Shares Outstanding (CSO) after April 30, 2019? ANSWER: __________________ 2. How much cash did the firm taken in from Jan. – April common stock issues? ANSWER: __________________ 3. What was the balance in the Common Stock account on May 1, 2019? ANSWER: __________________ 4. What was the APIC-CS account balance on May 1, 2019? ANSWER: __________________ 5. The company would like to raise a total of $10 million in cash from common stock sales. Enter the cash target in cell D9 and various share prices in cell C8, to answer the following questions. Can it meet its goal, and not exceed its authorized share limit, if the shares are sold for $10 each? ANSWER 1: __________________ Assuming the number of shares is rounded up to the nearest whole number and the share price must be an increment of $0.25 (10.00, 10.25, 10.50, 10.75, etc.), what is lowest price the shares could be sold for to achieve this goal? ANSWER 2: __________________ Date Shares Issued Share Price 1/1 125,000 8.75 2/28 135,000 9.00 3/31 250,000 9.50 4/30 175,000 9.75 Chapter 13: Treasury Stock 2. Charter Corp. was repurchasing and re-issuing Treasury Stock. It used the cost method to account for these transactions. The firm provided the data below for January and Feb. Treasury Stock transactions. Answer the following questions, using the Task 5 WB – WS2. Enter the following data in the cells B3:C6. Answer the following questions: 1. How many shares of Treasury Stock were on hand after the 2/20 transaction? ANSWER: __________________ 2. What was the balance of the Treasury Stock account after the 1/20 transaction? ANSWER: __________________ 3. What was the balance of the APIC-TS account after the 1/20 transaction? ANSWER: __________________ 4. What was the APIC-TS balance after the 2/20 transaction? ANSWER: __________________ 5. If the Retained Earnings balance was $285,000 at 2/1, what was the balance after the 2/20 transaction? Why did the Retained Earnings balance drop? ANSWER 1: __________________ ANSWER 2: __________________________________________________________________ _____________________________________________________________________________ Date Shares Purchased (Sold) Purchase Price Selling Price 1/1 125,000 10.00 NA 1/10 (85,000) 10.00 10.25 1/20 (15,000) 10.00 9.50 2/12 (10,000) 10.00 7.50 2/20 (10,000) 10.00 7.50 Chapter 14: Cash Dividends 3. On Jan. 1, 2020, Devlin Corp. declared a $2.5 million cash dividend for its common and 40% cumulative preferred stockholders. The date of record was Feb. 1, 2020, with a March 1, 2020 payment date. The company provided the following data. Common Stock par value $1/share 40% Cum. Preferred Stock par value $100/share Previous Dividend Payment (1/1/18) $1.75 Million (No Dividend Declared/Paid in 2019) NOTE: Dividends were declared and paid every year before 2018. Answer the following questions, using the Task 5 WB – WS3. Enter the following data in the yellow cells. Answer the following questions: 1. What was the Cumulative Preferred Stock guaranteed annual dividend amount? ANSWER: __________________ 2. What was the 2018 total Cum. Preferred Stock dividend amount? ANSWER: __________________ 3. What was the 2018 total Common Stock dividend amount? ANSWER: __________________ 4 What was the 2020 total Cum. Preferred Stock dividend amount? ANSWER: __________________ 5. What was the 2020 total Common Stock dividend amount? ANSWER: __________________ 6. Were the 2020 Cum. Preferred shareholders entitled to any Dividends in Arrears? ANSWER: __________________ Date CSO Cum PSO 1/1/18 125,000 8,500 1/1/19 135,000 8,500 1/1/20 150,000 8,500 2/1/20 175,000 8,500 Outstanding Shares Chapter 14: Stock Dividends 4. On Jan. 1, 2020, Eastman Corp. declared a stock dividend for its common stockholders. The date of record was Feb. 1, 2020, with a March 1, 2020 payment date. The company provided the following data. Answer the following questions, using the Task 5 WB – WS4. Enter the following data in the yellow cells. Answer the following questions: 1. How many new shares were created by the dividend? ANSWER: __________________ 2. What was the post-dividend Common Stock account balance? ANSWER: __________________ 3. What was the post-dividend APIC-CS account balance? ANSWER: __________________ 4. What was the post-dividend Retained Earnings account balance? ANSWER: __________________ 5. Based on the FMV of their shares, how much did the dividend increase the FMV of each share? ANSWER: __________________ Div % 35% CSO FMV/Share 85.00 CSO Par/Share 1.00 Pre-Div CSO 125,000 Pre-Div APIC-CS Bal 145,000 Pre-Div RE Bal 365,000 Chapter 14: Prior Period Adjustment (PPA) 5. Fitzgerald Corp. had to add a 2018 Prior Period Adjustment (PPA) to its 2019 books. The company provided the following data. Answer the following questions, using the Task 5 WB – WS5. Enter the following data in the yellow cells. Answer the following questions: 1. What was the amount of the 2018 error? ANSWER: __________________ 2. What was the amount of the PPA? ANSWER: __________________ 3. What was the 2019 post-PPA Retained Earnings balance? ANSWER: __________________ 4. Was the 2018 depreciation understated or overstated? ANSWER: __________________ 5. Did the 2018 error make the 2018 Net Income overstated or understated? ANSWER: __________________ Task 5 Deliverables (85 points, scaled to 10 points) Example: 68/85 (.80) points = 10 x (.80) = 8 points Use the Task 5 BB submission link to submit the Task 5 PDF & Task 5 WB. 1. Task 5 FPDF with proper naming convention (2 points) 2. Task 5 WB with proper naming convention (3 points) 3. Completed Task 5 FPDF (25 points): 1. Ch. 13: Common Share Issuance (5 points) 2. Ch. 13: Treasury Stock (5 points) 3. Ch. 14: Cash Dividends (5 points) 4. Ch. 14: Stock Dividends (5 points) 5. Ch. 14: Prior Period Adjustments (PPAs) (5 points) 4. Completed Task 5 WB (55 points): 1. WS 1 (10 points) 2. WS 2 (15 points) 3. WS 3 (10 points) 4. WS 4 (10 points) 5. WS 5 (10 points) Incorrect Prev Depreciation 135,000 Correct Depreciation 165,000 Tax Rate 35% Pre-PPA RE Balance 3,125,000 ANSWER: ANSWER_2: ANSWER_3: ANSWER_4: ANSWER 1: ANSWER 2: ANSWER_5: ANSWER_6: ANSWER_7: ANSWER_8: ANSWER 1_2: ANSWER 2 1: ANSWER 2 2: ANSWER_9: ANSWER_10: ANSWER_11: ANSWER_12: ANSWER_13: ANSWER_14: ANSWER_15: ANSWER_16: ANSWER_17: ANSWER_18: ANSWER_19: ANSWER_20: ANSWER_21: ANSWER_22: ANSWER_23: ANSWER_24: Acerno_Cache_XXXXX 1. Common Stock Issuance DateShares Issued Share PriceCash CS (Par)APIC 1/1000 2/28000 3/31000 4/30000 Total 0000 TargetERROR:#DIV/0!0 TargetERROR:#DIV/0! 2. Treasury Stock DateShares Purchased (Sold) Purchase PriceSelling Price Cash In (Out) TS (Cost)APIC-TSRE 1/1NA00 1/10000 1/20000 Bal0000285,000 2/120000 2/200000 Bal 0000285,000 3. Cash Dividends Outstanding Shares DateCSOCum PSOTotal CSO $ DivCurrent PSO $ DivPSO in ArrearsTotal PSO $ DivCSO $/SharePSO $/ShareDiv $PS Par100 1/1/1800NA0ERROR:#DIV/0!ERROR:#DIV/0!PS %40% 1/1/19000000 1/1/20NANANANANANANA 2/1/200000ERROR:#DIV/0!ERROR:#DIV/0! 4. Stock Dividends Div % CSO FMV/Share CSO Par/Share New Shares Created Pre-Div CSO Pre-Div CS Bal Pre-Div APIC-CS Bal Pre-Div RE Bal Pre-Div Total FMV0 CS Increase0 APIC-CS Increase0 Cost of Div0 Total FMV Increase0 Post-Div CSO0 Post-Div CS Bal0 Post-Div APIC-CS Bal0 Post-Div RE Bal0 Post-Div Total FMV0 Post-Div FMV Increase/ShareERROR:#DIV/0! 5. Prior Period Adjustment (PPA) Incorrect Prev Depreciation Correct Depreciation Tax Rate Pre-PPA RE Balance Error0 PPA (Net of Tax)0 RE Increase (Decrease)0 Post-PPA RE0 Task 6 BACC 518 Summer 2021 NOTE: Please READ and FOLLOW the Fillable PDF instructions posted on BB. Answer the questions for each chapter by using the Task 6 WB. Chapter 15: Time Deposits 1. Able Corp. did several long-term cash flow analyses, involving compounding and discounting. Time Deposits (CDS) were funded in 2019. They provided the following data. Answer the following questions, using the Task 6 WB – WS1 – Part 1. Enter the following data in the yellow cells. Answer the following questions (Round up to the nearest whole dollar): 1. What will the 3-Year Term CD be worth at maturity? ANSWER: __________________ 2. What will the 5-Year Term CD be worth at maturity? ANSWER: __________________ 3