The Oklahoma A & M Aggies sell season tickets for four home football games at a price of $15. For the 2012 season, 5,000 tickets were sold.
(a) Write a journal entry to show the effect of the sale of the season tickets.
(b) Write the journal entry to show the effect of hosting a home football game.
(c) Where on the balance sheet would the account balance representing funds received for the games not yet played be classified? Assume that Oklahoma follows the same accounting and financial reporting procedures that are used in business. The balance sheet caption for common stock is: Common Stock, no par value, 7,000,000 shares authorized, 4,600,000 shares issues, 4,450,000 shares outstanding and 552,000,000.
(a) Calculate the average price at which the shares were issued.
(b) If these shares have been assigned a stated (or par) value of $10 each, show how the above caption would be different.
(c) Calculate the total amount of cash that would be paid to stockholders if a cash dividend of $1.50 per share were declared. Use the appropriate information from the data provided below to calculate operating income for the year ended December 31, 2012. Cost of Goods sold General and administrative expenses Net Cash provided by financing activities Dividends paid (16,000) Extraordinary loss from a flood, net of tax savings of $32,000 Income tax expense (11,000) Other selling expense Net sales (278,000) Advertising expense (39,000) Accounts receivable.