Blue Company Reported The Following Amounts In The Stockholders Equity Section Of Its December 31 2019 Balance Sheet 1 (48.71 KiB) Viewed 40 times
Blue Company Reported The Following Amounts In The Stockholders Equity Section Of Its December 31 2019 Balance Sheet 2 (43.33 KiB) Viewed 40 times
Blue Company Reported The Following Amounts In The Stockholders Equity Section Of Its December 31 2019 Balance Sheet 3 (16.75 KiB) Viewed 40 times
Blue Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 9%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, $5 par (102,000 shares authorized, 20,400 shares issued) 102,000 Additional paid-in capital 120,000 Retained earnings 495,000 Total $917,000 During 2020, Blue took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $9 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019. 2. Purchased 1,700 shares of its own outstanding common stock for $41 per share. Blue uses the cost method. 3. Reissued 600 treasury shares for land valued at $30,400. 4. Issued 480 shares of preferred stock at $105 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $44 per share. 6. Issued the stock dividend. 7. Declared the annual 2020 $9 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021.
Prepare journal entries to record the transactions described above. (Credit account titles are automatically indented when amount entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. Dividends Payable - Preferred 18000 Dividends Payable - Common 40800 Cash 2. Treasury Stock 69700 Cash 3. Land 30400 Treasury Stock Paid-in Capital from Treasury Stock Cash Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock Retained Earnings Common Stock Dividend Distributable Paid-in Capital in Excess of Par - Common Stock Common Stock Dividend Distributable Common Stock Retained Earnings Dividends Payable - Preferred Dividends Payable-Common 4. 5. 6. 7. II 50400 84920 9650 64780 58800 69700 24600 5800 48000 2400 9650 75270 9650 22320 42460
Part 2 Prepare the December 31, 2020, stockholders' equity section. Assume 2020 net income was $326,000. (Enter account name only .Do not provide any descriptive information.) BLUE COMPANY Stockholders' Equity SA $
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