On October $3$, Valley Clothing Inc. reacquired $10,000$ shares of its common stock at $\$9$ per share. On November $15$, Valley Clothing sold $6,800$ of the reacquired shares at $\$12$ per share. On December $22$, Valley Clothing sold the remaining shares at $\$7$ per share.
$\hspace{20pt}$ Journalize the transactions of October $3$, November $15$, and December $22$.

Spectrum Corporation has 600,000 shares of $\$75$ par common stock outstanding. On February $13$, Spectrum Corporation declared a $4\%$ stock dividend to be issued April $30$ to stockholders of record on March $14$. The market price of the stock was $\$90$ per share on February $13$.
$\hspace{20pt}$ Journalize the entries required on February $13$, March $14$, and April $30$.

On June $4$, Magic Carpet Inc., a carpet wholesaler, issued for cash $250,000$ shares of no-par common stock (with a stated value of $\$3$) at $\$12$, and on October $9$, it issued for cash $25,000$ shares of $\$75$ par preferred stock at $\$80$.
$\hspace{20pt}$ Journalize the entries for June $4$ and October $9$, assuming that the common stock is to be credited with the stated value.

Self Storage Corporation has $100,000$ shares of $\$40$ par common stock outstanding. On May $10$, Self Storage Corporation declared a $2\%$ stock dividend to be issued August $1$ to stockholders of record on June $9$. The market price of the stock was $\$48$ per share on May $10$.
$\hspace{20pt}$ Journalize the entries required on May $10$, June $9$, and August $1$.

A stockbroker advises a client to “buy preferred stock. . . . With that type of stock, . . . [you] will never have to worry about losing the dividends.” Is the broker right?

The important dates in connection with a cash dividend of $\$61,500$ on a corporation’s common stock are July $1$, August $1$, and September $30$. Journalize the entries required on each date.

On February $10$, Peerless Rocks Inc., a marble contractor, issued for cash $40,000$ shares of $\$10$ par common stock at $\$34$, and on May $9$, it issued for cash $100,000$ shares of $\$5$ par preferred stock at $\$7$.
$\hspace{20pt}$ What is the total amount invested (total paid-in capital) by all stockholders as of May $9$?

The important dates in connection with a cash dividend of $\$112,750$ on a corporation’s common stock are October $6$, November $5$, and December $5$. Journalize the entries required on each date.

On February $10$, Peerless Rocks Inc., a marble contractor, issued for cash $40,000$ shares of $\$10$ par common stock at $\$34$, and on May $9$, it issued for cash $100,000$ shares of $\$5$ par preferred stock at $\$7$.
$\hspace{20pt}$ Journalize the entries for February $10$ and May $9$.

Of two corporations organized at approximately the same time and engaged in competing businesses, one issued $\$100$ par common stock, and the other issued $\$0.01$ par common stock. Do the par designations provide any indication as to which stock is preferable as an investment? Explain.

On February $13$, Elman Corporation issued for cash $75,000$ shares of no-par common stock (with a stated value of $\$125$) at $\$140$. On September $9$, Elman issued $15,000$ shares of $1\%$, $\$60$ preferred stock at par for cash. On November $23$, Elman issued for cash $8,000$ shares of $1\%$, $\$60$ par preferred stock at $\$70$.
$\hspace{20pt}$ Journalize the entries to record the February $13$, September $9$, and November $23$ transactions.

On July $3$, Hanoi Artifacts Corporation issued for cash $450,000$ shares of no-par common stock at $\$2.50$. On September $1$, Hanoi Artifacts issued $10,000$ shares of $2\%$, $\$25$ preferred stock at par for cash. On October $30$, Hanoi Artifacts issued for cash $7,500$ shares of $2\%$, $\$25$ par preferred stock at $\$30$.
$\hspace{20pt}$ Journalize the entries to record the July $3$, September $1$, and October $30$ transactions.

Staples and OfficeMax are two companies competing in the retail office supply business. OfficeMax had a net income of $\$91,721,000$ for a recent year, while Staples had a net income of $\$973,577,000$. OfficeMax had preferred stock of $\$54,735,000$ with a preferred dividend of $7.375\%$ on that amount. Staples had no preferred stock. The outstanding common shares for each company were as follows:

$$\begin{array}{lc} & \textbf{Common Shares}\\ \hline \text{OfficeMax} & \hspace{11pt}73,142,000\\ \text{Staples} & \hspace{6pt}720,528,000 \end{array}$$

Evaluate the relative profitability of the two companies.

Staples and OfficeMax are two companies competing in the retail office supply business. OfficeMax had a net income of $\$91,721,000$ for a recent year, while Staples had a net income of $\$973,577,000$. OfficeMax had preferred stock of $\$54,735,000$ with a preferred dividend of $7.375\%$ on that amount. Staples had no preferred stock. The outstanding common shares for each company were as follows:

$$\begin{array}{lc} & \textbf{Common Shares}\\ \hline \text{OfficeMax} & \hspace{11pt}73,142,000\\ \text{Staples} & \hspace{6pt}720,528,000 \end{array}$$

Determine the earnings per share for each company.