Journalize the transactions. (Include entries to close net income and dividends

Question

Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

The stockholders' equity accounts of Grouper Corp. on January 1, 2017, were as follows. Preferred Stock (890, $100 par noncumulative, 4,600 shares authorized) Common Stock ($4 stated value, 320,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stoclk Retained Earnings Treasury Stock (4,600 common shares) $276,000 1,066,666 13,800 512,000 691,500 36,800 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 4,580 shares of common stock for $27,480. Mar. 20 Purchased 1,650 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 8% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.60 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017 Dec. 31 Determined that net income for the year was $276,400. Paid the dividend declared on December 1.

Explanation / Answer

a.

Date

Note:- Common stock outstanding = $1066666/$4 - 4600 + 4580 - 1650

= 264996.5 shares

b. stockholder's equity   

Preferred stock (8% ,100 par noncumulative ,4600 share authorised ) 276000

Common stock ($4 stated value ,320000 share authorised) 1084986

Paid in capital in excess of par value - preferred stock 13800

paid in capital in excess of stated value - common stock 521160

Retained earnings 786822

Total 2682768

less: Treasury stock 48350

Total stockholder's equity $2634418

Date

Accounts Dr Cr 1 feb Cash 27480 To common stock 18320 To paid in capital in excess of stated value - common stock 9160 20 Mar Treasury stock (1650 * $7) 11550 To cash 11550 1 Oct Cash dividend [$276000 * 8%] 22080 To Dividend payable 22080 1 Nov Dividend payable 22080 To cash 22080 1 Dec Cash dividend (264996.5 * 0.6) 158998 To Dividend payable 158998

Note:- Common stock outstanding = $1066666/$4 - 4600 + 4580 - 1650

= 264996.5 shares

1 Dec Dividend payable 158998 To cash 158998 31Dec Income summary 276400 To Retained earnings 276400 31Dec Retained earnings 181078 To Dividend payable [158998 + 22080] 181078

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