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View History Bookmarks Window Help Practice Gradebook ORION Downloadable eTextbo

ID: 2330389 • Letter: V

Question

View History Bookmarks Window Help Practice Gradebook ORION Downloadable eTextbook CALCULATO FULL SCREEN PRINTER VERSON BACX NEXT ES Problem 11-2A (Part Level Submission) The stockholders' equity accounts of Cheyenne Corp, on January 1, 2017, were as follows Preferred Stock (7%, $100 par noncumulative, 4,400 shares authorized) $264,000 Common Stock ($4 stated value, 310,000 shares authorized) Pald-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings 1,033,333 13,200 496,000 683,500 35,200 dy Treasury Stock (4,400 common shares) During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity Feb. 1 Issued 4,620 shares of common stock for $32,340 Mar. 20 Purchased 1,250 additional shares of common treasury stock at $8 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. Declared a $0.85 per share cash dividend to common stockholders of record on December 15, payable December 31, 20127. Dec. 31 Determined that net income for the year was $278,200. Paid the dividend declared on December 1. v (a) Your answer is partially correct. Try again. Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when ervacy Policy I 2000-201BlehnyleyAsens.Inc. A l Rights Reserved. A Division ofJobnYierason.1% Version 4.24.9.3 cbook Pro

Explanation / Answer

Common Stock outstanding on Jan 1 = 1033333/4= 258333 1-Dec Cash dividends 218708 =(258333+4620-4400-1250)*0.85         Dividends payable 218708 31-Dec Retained earnings 237188        Cash dividends 237188 To close cash dividends 31-Dec Dividends payable 218708        Cash 218708