Stockholders' Equity Section of Balance Sheet
The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the cu
ent year:
Common Stock, $15 pa
$652,500
Paid-In Capital from Sale of Treasury Stock
26,800
Paid-In Capital in Excess of Par—Common Stock
17,400
Retained Earnings
1,024,000
Treasury Stock
13,490
Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 710 shares have been reacquired.
Goodale Properties Inc.
Stockholders' Equity
June 30, 20XX
Paid-In Capital:
$
$
Total Paid-In Capital
$
Total
$
Total Stockholders' Equity
$
Retained Earnings Statement
Sumter Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended January 31, 20Y2:
Retained earnings, Fe
uary 1, 20Y1
$380,200
Net income
45,600
Cash dividends declared
8,200
Stock dividends declared
15,500
Prepare a retained earnings statement for the fiscal year ended January 31, 20Y2.
Sumter Pumps Corporation
Retained Earnings Statement
For the Year Ended January 31, 20Y2
$
$
$
Selected Stock Transactions
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the cu
ent year:
Prefe
ed 2% Stock, $150 par (60,000 shares authorized, 30,000 shares issued)
$4,500,000
Paid-In Capital in Excess of Par—Prefe
ed Stock
720,000
Common Stock, $15 par (600,000 shares authorized, 270,000 shares issued)
4,050,000
Paid-In Capital in Excess of Par—Common Stock
530,000
Retained Earnings
20,776,000
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
a. Issued 60,000 shares of common stock at $20, receiving cash.
. Issued 15,000 shares of prefe
ed 2% stock at $170.
c. Purchased 36,000 shares of treasury common for $17 per share.
d. Sold 18,000 shares of treasury common for $20 per share.
e. Sold 12,000 shares of treasury common for $15 per share.
f. Declared cash dividends of $3.00 per share on prefe
ed stock and $0.06 per share on common stock.
g. Paid the cash dividends.
Required:
Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Issued 60,000 shares of common stock at $20, receiving cash.
. Issued 15,000 shares of prefe
ed 2% stock at $170.
c. Purchased 36,000 shares of treasury common for $17 per share..
d. Sold 18,000 shares of treasury common for $20 per share.
e. Sold 12,000 shares of treasury common for $15 per share.
f. Declared cash dividends of $3 per share on prefe
ed stock and $0.06 per share on common stock.
g. Paid the cash dividends.
Entries for Selected Corporate Transactions
Mo
ow Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Mo
ow Enterprises Inc., with balances on January 1, 20Y5, are as follows:
Common Stock, $10 stated value (850,000 shares authorized, 560,000 shares issued)
$5,600,000
Paid-In Capital in Excess of Stated Value-Common Stock
1,050,000
Retained Earnings
12,710,000
Treasury Stock (56,000 shares, at cost)
840,000
The following selected transactions occu
ed during the year:
Jan. 22.
Paid cash dividends of $0.12 per share on the common stock.
The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $60,480.
Apr. 10.
Issued 105,000 shares of common stock for $1,680,000.
June 6.
Sold all of the treasury stock for $1,008,000.
July 5.
Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock,
which is $18 per share.
Aug. 15.
Issued the certificates for the dividend declared on July 5.
Nov. 23.
Purchased 35,000 shares of treasury stock for $700,000.
Dec. 28.
Declared a $0.15-per-share dividend on common stock.
31.
Closed the credit balance of the income summary account, $13,218,000.
31.
Closed the two dividends accounts to Retained Earnings.
Required:
1. The January 1 balances have been entered in T accounts for the stockholders' equity accounts. Record the above transactions in the T accounts and provide the December 31 balance where appropriate.
Common Stock
Jan. 1 Bal.
5,600,000
Dec. 31 Bal.
Paid-In Capital in Excess of Stated Value-Common Stock
Jan. 1 Bal.
1,050,000
Dec. 31 Bal.
Retained Earnings
Jan. 1 Bal.
12,710,000
Dec. 31 Bal.
Treasury Stock
Jan. 1 Bal.
840,000
Dec. 31 Bal.
Paid-In Capital from Sale of Treasury Stock
Stock Dividends Distributable
Stock Dividends
Cash Dividends
2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.
Jan. 22. Paid cash dividends of $0.12 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $60,480.
Date
Account
Debit
Credit
Jan. 22
Apr. 10. Issued 105,000 shares of common stock for $1,680,000.
Date
Account
Debit
Credit
Apr. 10
June 6. Sold all of the treasury stock for $1,008,000.
Date
Account
Debit
Credit
June 6
July 5. Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share.
Date
Account
Debit
Credit
July 5
Aug. 15. Issued the certificates for the dividend declared on July 5.
Date
Account
Debit
Credit
Aug. 15
Nov. 23. Purchased 35,000 shares of treasury stock for $700,000.
Date
Account
Debit
Credit
Nov. 23
Dec. 28. Declared a $0.15-per-share dividend on common stock.
Date
Account
Debit
Credit
Dec. 28
Dec. 31. Closed the credit balance of the income summary account, $13,218,000.
Date
Account
Debit
Credit
Dec. 31
Dec. 31. Closed the two dividends accounts to Retained Earnings.
Date
Account
Debit
Credit
Dec. 31
3. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Mo
ow Enterprises Inc. had net income for the year ended December 31, 20Y5, of $13,218,000.
Mo
ow Enterprises Inc.
Retained Earnings Statement
For the Year Ended December 31, 20Y5
Dividends:
$
4. Prepare the Stockholders' Equity section of the December 31, 20Y5, balance sheet.
Mo
ow Enterprises Inc.
Stockholders' Equity
As of December 31, 20Y5
Paid-In-Capital:
Total Paid-In Capital
Total
Total Stockholders' Equity
$
Entries for Selected Corporate Transactions
Selected transactions completed by ATV Discount Corporation during the cu
ent fiscal year are as follows:
Journalize the transactions. If no entry is required, select "No Entry Required" from the dropdown box and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.
Jan. 5. Split the common stock 4 for 1 and reduced the par from $120 to $30 per share. After the split, there were 320,000 common shares outstanding.
Date
Account
Debit
Credit
Jan. 5.
Mar. 10. Purchased 26,000 shares of the corporation's own common stock at $35, recording the stock at cost.
Date
Account
Debit
Credit
Mar. 10.
Apr. 30. Declared semiannual dividends of $1.6 on 55,000 shares of prefe
ed stock and $0.07 on the common stock to stockholders of record on May 15, payable on June 15.
Date
Account
Debit
Credit
Apr. 30.
June 15. Paid the cash dividends.
Date
Account
Debit
Credit
June 15.
Aug. 20. Sold 19,000 shares of treasury stock at $39, receiving cash.
Date
Account
Debit
Credit
Aug 20.
Oct. 15. Declared semiannual dividends of $1.6 on the prefe
ed stock and $0.13 on the common stock (before the stock dividend).
Date
Account
Debit
Credit
Oct. 15.
Oct. 15. A 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $41.
Date
Account
Debit
Credit
Oct. 15.
Dec. 19. Paid the cash dividends.
Date
Account
Debit
Credit
Dec. 19.
Dec. 19. Issued the certificates for the common stock dividend.
Date
Account
Debit
Credit
Dec. 31.