Flounder Company reported the following amounts in the stockholders’ equity sect
ID: 2338211 • Letter: F
Question
Flounder Company reported the following amounts in the stockholders’ equity section of its December 31, 2016, balance sheet.
During 2017, Flounder took part in the following transactions concerning stockholders’ equity.
Declared the annual 2017 $11 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018.
Prepare the December 31, 2017, stockholders’ equity section. Assume 2017 net income was $336,000. (Enter account name only. Do not provide any descriptive information.)
Preferred stock, 11%, $100 par (10,000 shares authorized, 2,100 shares issued) $210,000 Common stock, $5 par (91,000 shares authorized, 18,200 shares issued) 91,000 Additional paid-in capital 130,000 Retained earnings 448,000 Total $879,000Explanation / Answer
Prepare the December 31, 2017, stockholders’ equity section.
Dividend = (2640*11)+(18920*2) = 66880
FLOUNDER COMPANY STOCKHOLDERS' EQUITY DECEMBER 31, 2017 Capital Stock Preferred Stock (210000+54000) 264000 Common Stock 99600 Total Capital Stock 363600 Additional Paid-In-Capital 205000 Total Paid-In-Capital 568600 Retained Earnings (448000+336000-66880-79120) 638000 Total Paid-In-Capital and Retained Earngins 1206600 LEss: Treasury STock (1000*43) -43000 Total Stockholders' Equity 1163600Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.