Would you like to live in a cabin in the woods as Thoreau did? Share your thoughts with a classmate.

Thoreau is fond of paradoxes, statements that seem to contradict themselves but are nevertheless true. For example, he writes, "I did not wish to live what was not life" and "We are determined to be starved before we are hungry." Tell what you think he means by each of these statements. What other paradoxes can you find?

For what reason did Thoreau go to Walden?

You learn that a dandelion is in the same kingdom as pine trees. Name three characteristics that these organisms share.

On December 31, 2014, the stockholders’ equity section of Torez Corporation’s balance sheet appeared as follows.

$$\begin{array}{lr} \text{Contributed capital:}\\ \text{$\quad$Common stock, \$8 par value, 800,000 shares authorized, 240,000 shares}\\ \text{$\quad\quad$issued and outstanding} & \$\hspace{6pt}1,920,000\\ \text{$\quad$Additional paid-in capital} & \underline{5,120,000}\\ \text{Total contributed capital} & \$\hspace{6pt}7,040,000\\ \text{Retained earnings} & \underline{3,296,000}\\ \text{Total stockholders’ equity} & \underline{\underline{\$10,336,000}}\\ \end{array}$$

The following are selected transactions involving stockholders’ equity in 2015. On January 4, the board of directors obtained authorization for 80,000 shares of $40 par value noncumulative preferred stock that carried an indicated dividend rate of$4 per share and was callable at $42 per share. On January 14, the company sold 48,000 shares of the preferred stock at$40 per share and issued another 8,000 in exchange for a building valued at $320,000. On March 8, the board of directors declared a 2-for-1 stock split on the common stock. On April 20, after the stock split, the company purchased 12,000 shares of common stock for the treasury at a price of$12 per share; 4,000 of these shares subsequently were sold on May 4 at an average price of $16 per share. On July 15, the board of directors declared a cash dividend of$4 per share on the preferred stock and $0.40 per share on the common stock. The date of record was July 25. The dividends were paid on August 15. The board of directors declared a 15 percent stock dividend on November 28, when the common stock was selling for$20. The date of record for the stock dividend was December 15, and the dividend was to be distributed on January 5.

Required

1. Prepare journal entries to record these transactions.

2. Prepare the stockholders’ equity section of Torez’s balance sheet as of December 31, 2015. Net loss for 2015 was $872,000. (Hint: Use T accounts to keep track of transactions.)

3. Compute the book value per share for preferred and common stock (including common stock distributable) on December 31, 2014 and 2015, using end-of-year shares outstanding. (Round to the nearest cent.) What effect would you expect the change in book value to have on the market price per share of the company’s stock?

Do populations that are geographically isolated from one another share a gene pool? Why or why not?

Do you share the poet's attitude toward war as he demonstrates it in "Losses"? Why or why not?

When issuing shares of stock, what par value can a corporation assign to each share?

Bacon, Inc., has the following stockholders’ equity section in its May 31, 2013, comparative balance sheets:

Required:

g. Assume that instead of the stock dividend described in f, the board of directors authorized a 2-for-1 stock split on June 1 when the market price of the common stock was $66 per share.

1. What will be the par value, and how many shares of common stock will be authorized after the split?
2. What will be the market price per share of common stock after the split?
3. How many shares of common stock will be in the treasury after the split?

What do you think of Marguerite's admiration for Mrs. Flowers? Share your thoughts with the class.

What reaction did you have to Annie Johnson's story? Share your thoughts with a classmate.

What is the amount of the liability that the company recognizes in each of the following independent cases? a. A plaintiff files a lawsuit against the company. The probability is 90% that the company will lose. If it loses, the amount of the loss will most likely be $100,000.

On September 1, Weiss Company has 250,000 shares of $15 par value ($165 market value) common stock that are issued and outstanding. Its balance sheet on that date shows the following account balances relating to the common stock.

Common stock - $3,750,000 Paid-in capital in excess of par value - 2,250,000

On September 2, Weiss splits its stock 3-for-2 and reduces the par value to$10 per share. b. What is the dollar balance of the common stock account immediately after the stock split?

On September 1, Weiss Company has 250,000 shares of $15 par value ($165 market value) common stock that are issued and outstanding. Its balance sheet on that date shows the following account balances relating to the common stock.

Common stock - $3,750,000 Paid-in capital in excess of par value - 2,250,000

On September 2, Weiss splits its stock 3-for-2 and reduces the par value to$10 per share. a. How many shares of common stock are issued and outstanding immediately after the stock split?