- Retained Earnings Transactions And Statement The Stockholders Equity Of Elson Corporation At January 1 Is Shown Below 1 (149.8 KiB) Viewed 69 times
Retained Earnings: Transactions and
Statement The stockholders' equity of Elson Corporation at January 1 is shown below: 5 Percent preferred stock, $100 par value, 10,000 shares authorized; 5,000 shares issued and outstanding Common stock, $5 par value, 200,000 shares authorized; 60,000 shares issued and outstanding Paid-in capital in excess of par value-Preferred stock Paid-in capital in excess of par value-Common stock Retained earnings Total Stockholders' Equity The following transactions, among others, occurred during the year: Apr. 1 Declared a 100 percent stock dividend on all outstanding shares of common stock. The market value of the stock was $12 per share. 15 Issued the stock dividend declared on April 1. Dec. 7 Declared a 3 percent stock dividend on all outstanding shares of common stock. The market value of the stock was $15 per share. 17 Issued the stock dividend declared on December 7. 20 Declared the annual cash dividend on the preferred stock and a cash dividend of 90 cents per common share, payable on January 15 to common stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions. General Journal Date Apr.01 Stock Dividends Stock Dividends Distributable Declared stock dividend on common stock. Description Apr.15 Stock Dividends Distributable Dec.07 Stock Dividends Common Stock Issued common shares as common stock declared as a dividend. Stock Dividends Distributable Paid-in-Capital in Excess of Par Value - Common Stock. Declared a cash dividend on common stock outstanding Dec.17 Stock Dividends Distributable Common Stock Issued Shares of common stock declared as a dividend. Dec.20 Cash Dividends $500,000 $300,000 40,000 300,000 656,000 $1,796,000 Dividends Payable - Preferred Stock Dividends Payable - Common Stock Declared cash dividend on preferred and common stock. ✔ ✔ $ Debit 300,000 $ 0✔ 300,000 ✓ 0✔ 0x 0✓ 0✓ 0x 0✔ 0x 0✓ 0✓ Credit 0✓ 300,000✔ 0✓ 300,000 ✓ 0✓ 0x 0x 0✓ 0x 0✔ 0x 0x
b. Prepare a
statement of retained earnings. Net income for the year is $254,000. Do not use negative signs with your answers. ELSON CORPORATION
Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 AddNet Income Les Cash Dividends Declared Stock Dividends Declared Retained Earnings, December 31 Check $ LA 0x 0x +A $ $ LA 0x 0x 0x 0x 0x