- P11 3a Lo 2 4 Ap The Stockholders Equity Accounts Of Castle Corporation On January 1 2022 Were As Follows Prefer 1 (52.75 KiB) Viewed 42 times
P11.3A (LO 2, 4), AP The stockholders' equity accounts of Castle Corporation on January 1, 2022, were as follows. Preferred Stock (8%, $50 par, cumulative, 10,000 shares authorized) Common Stock ($1 stated value, 2,000,000 shares authorized) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (10,000 common shares) During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity. Issued 25,000 shares of common stock for $120,000. Feb. 1 Apr. 14 Sold 6,000 shares of treasury stock-common for $33,000. Sept. 3 Issued 5,000 shares of common stock for a patent valued at $35,000. Nov. 10 Dec. 31 No dividends were declared during the year. Instructions Purchased 1,000 shares of common stock for the treasury at a cost of $6,000. Determined that net income for the year was $452,000. $ 400,000 1,000,000 100,000 1,450,000 1,816,000 50,000 a. Journalize the transactions and the closing entry for net income. b. Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use T-accounts.) c. Prepare a stockholders' equity section at December 31, 2022, including the disclosure of the preferred dividends in arrears. c. Total stockholders' equity $5,350,000 Prepare dividend entries and stockholders' equity section.