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need help with exercise 11-2a

Income before interest and taxes Interest expense from bonds Income before income taxes Income tax expense (30%) Tue Stock $1,500,000 Issue Bonds $1,500,000 Net income Outstanding shares Earnings per share 700.000 BE11-12 Stossel Cor standing. It decla share is $17. The di sel Corporation has 200,000 shares of $10 par value common stock out- declares a 12% stock dividend on December 1 when the market price per The dividend shares are issued on December 31. Prepare the entries for the cation and distribution of the stock dividend. Prepare dividend (LO 5), DO IT! EXERCISES i 11-1 Indicate whether each of the following statements is true or false. 1. The corporation is an entity separate and distinct from its owners. Analyze corpore 2. The liability of stockholders is normally limited to their investment in the corporation. (L01). 3. The relative lack of government regulation is an advantage of the corporate form of business. 4. There is no journal entry to record the authorization of capital stock. _5. No-par value stock is quite rare today. DO ITI 11:20 Beauty Island Corporation began operations on April 1 by issuing 55,000 Jount shares of $5 par value common stock for cash at $13 per share. In addition, Beauty Island (LO 2). issued 1,000 shares of $1 par value preferred stock for $6 per share. Journalize the issu- ance of the common and preferred shares. Jour 11-25 Dinosso Corporation purchased 2,000 shares of its $10 par value common transe for $76,000 on August 1. It will hold these in the treasury until resold. Journalize the (LO 2) Treasury stock transaction

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