*Problem 11-2A (Part Level Submission) Warning Don\'t show me this message again
ID: 2422683 • Letter: #
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*Problem 11-2A (Part Level Submission)
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*(a)
Date
Account Titles and Explanation
Debit
Credit
(To record net income)
(To close cash dividends)
(To record payment of cash dividends payable)
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*(b)
Preferred Stock
Common Stock
Paid-in Capital in Excess of Par Value—Preferred Stock
Paid-in Capital in Excess of Stated Value—Common Stock
Retained Earnings
Cash Dividends
Treasury Stock
The stockholders’ equity accounts of Miley Corporation on January 1, 2014, were as follows.Preferred Stock (6%, $100 par noncumulative, 4,500 shares authorized) $270,000 Common Stock ($4 stated value, 301,300 shares authorized) 964,160 Paid-in Capital in Excess of Par Value—Preferred Stock 10,800 Paid-in Capital in Excess of Stated Value—Common Stock 241,040 Retained Earnings 695,200 Treasury Stock—(4,500 common shares) 36,000
During 2014, the corporation had the following transactions and events pertaining to its stockholders’ equity.
Feb. 1 Issued 5,100 shares of common stock for $30,600. Mar. 20 Purchased 1,640 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 6% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.80 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014. Dec. 31 Determined that net income for the year was $276,200. Paid the dividend declared on December 1.
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Explanation / Answer
Solution:
Preferred Stock Bal b/d 270,000 Bal c/d 270,000 270,000 270,000 Common Stock Bal b/d 964,160 Cash 20,400 Bal c/d 984,560 984,560 984,560 Paid in Capital in excess of Par value - Preferred Stock Bal b/d 10,800 Bal c/d 10,800 10,800 10,800 Paid in Capital in excess of Par value - Common Stock Bal b/d 241,040 Cash 10,200 Bal c/d 251,240 251,240 251,240 Retained Earnings Bal b/d 695,000 Cash dividends 208,200 Income sumaary 276,200 Bal c/d 763,000 763,000 763,000 Cash Dividends Dividends Payable 192,000 Retained Earnings 208,200 Dividends Payable 16,200 208,200 208,200 Treasury Stock Cash 11,480 Bal c/d 11,480 11,480 11,480Related Questions
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