[silvergray545]

I'm working on some online homework and I'm having a little trouble. Not looking for answers, just clarification. I can post a screen shot if anyone thinks they can help.

[Black Leopard]

im sitting in accounting class right now haha..
i can try to take a shot at your question

[BTM]

PM me question, or post it here. I'll see if I can help

[silvergray545]

I actually just figured it out now. Thanks though. I'm sure I'll have another question soon lol. Exam is tomorrow. :/

[BTM]

Just curious what sort of accounting are you studying for?

[silvergray545]

It's Accounting Principles I. Nothing too crazy. I'm a Finance major so I'm just trying to get through it, lol. I have to take Accounting Principles II also. Not sure why I need so many accounting classes.

[BTM]

I figured as much...just curious though, I hated my accounting prereqs too but they have actually proven useful since I do bookkeeping for my father's company at the moment...you never know....2c

[silvergray545]

It's not a bad class to be honest. I just don't agree with how it's taught and how we're tested. We are taught all the things you need to know to pretty much do book keeping. We'll do worksheets and all our homework is playing with numbers. That's easy. But when it's exam time, the entire exam is all definitions and the "theory" portion behind it. The professor doesn't write the exam, the Accounting department does. That's stupid, IMO. Every time around exam time, I don't know what to study. If they gave my numbers, paper, pencil and a calculator, I'd get 100% in that class. I can't wait until it's over.

[BTM]

GL man

[silvergray545]

Alright, how do I find the preferred stock?

[radix]

Try pm'ing user seminole if nobody else can help. His sig indicates that he is an accountant, IIRC.

[silvergray545]

Originally Posted by radix

Try pm'ing user seminole if nobody else can help. His sig indicates that he is an accountant, IIRC.

I checked to see when he was online last and it's been a few hours, so I doubt he'll respond tonight. Thanks though.

[scollins]

I have no clue, but looking at the simple math of it:
The "additional paid-in capital" figure for the common stock is:
70,000 shares at $13 = $910,000 - $140,000 ($2 stated value of those 70,000 shares) = $770,000.

Following that same logic for the preferred stock, you have:
2,500 shares at $103 = $257,500 - $250,000 ($100 par value of the 2,500 shares) = $7,500.

But I have no idea if that is right (which is why I married an accountant instead of becoming one.....)

[silvergray545]

Originally Posted by scollins

I have no clue, but looking at the simple math of it:
The "additional paid-in capital" figure for the common stock is:
70,000 shares at $13 = $910,000 - $140,000 ($2 stated value of those 70,000 shares) = $770,000.

Following that same logic for the preferred stock, you have:
2,500 shares at $103 = $257,500 - $250,000 ($100 par value of the 2,500 shares) = $7,500.

But I have no idea if that is right (which is why I married an accountant instead of becoming one.....)

Wow. I can't believe I missed that. Lol, it's been a long day. It's gonna be a long night too. Thanks a lot.

[jopa489]

Consider yourself lucky since you (most likely) don't have to take Intermediate or Advanced.

[silvergray545]

Yeah, hopefully. I know I still have to take Accounting Principles II so I'm not sure how difficult that course is.

[jopa489]

Originally Posted by silvergray545

Yeah, hopefully. I know I still have to take Accounting Principles II so I'm not sure how difficult that course is.

If you can do AP-I you can do AP-II. It's just a continuation; the difficulty doesn't really increase much.

[silvergray545]

Originally Posted by jopa489

If you can do AP-I you can do AP-II. It's just a continuation; the difficulty doesn't really increase much.

Oh really? I didn't schedule AP-II next semester because I thought it was gonna be harder lol. Instead I scheduled QBA I. Not sure what that's gonna be like.

[Seminole]

Originally Posted by radix

Try pm'ing user seminole if nobody else can help. His sig indicates that he is an accountant, IIRC.

Yup! Though technically not yet. I start full time in October. I'm still finishing my MS, but I teach the Intro to Accounting class.

Originally Posted by scollins

I have no clue, but looking at the simple math of it:
The "additional paid-in capital" figure for the common stock is:
70,000 shares at $13 = $910,000 - $140,000 ($2 stated value of those 70,000 shares) = $770,000.

Following that same logic for the preferred stock, you have:
2,500 shares at $103 = $257,500 - $250,000 ($100 par value of the 2,500 shares) = $7,500.

But I have no idea if that is right (which is why I married an accountant instead of becoming one.....)

You're right, not bad for not knowing accounting!


silvergray545, don't get thrown off by the 8% cumulative part. That just means that you will accrue an 8% dividend each year on those shares. Feel free to PM me if you ever have a question.

[silvergray545]

Originally Posted by Seminole

Yup! Though technically not yet. I start full time in October. I'm still finishing my MS, but I teach the Intro to Accounting class.



You're right, not bad for not knowing accounting!


silvergray545, don't get thrown off by the 8% cumulative part. That just means that you will accrue an 8% dividend each year on those shares. Feel free to PM me if you ever have a question.

Yeah, that's what threw me off.

I'm sure you'll hear from me soon lol. My final is Thursday.

[tyler9595]

guys, I'm a CPA since 1991 and own my own small CPA firm since 2000...let me know if I can help any time.

I think the APIC for the preferred stock is 2,500sh x $3...just my best guess I'm too lazy to look it up.

[jopa489]

Originally Posted by silvergray545

Oh really? I didn't schedule AP-II next semester because I thought it was gonna be harder lol. Instead I scheduled QBA I. Not sure what that's gonna be like.

Yeah. Principles II just continues; you'll probably even use the same book.