The stockholders’ equity accounts of Miley Corporation on January 1, 2014, were

Question

The stockholders’ equity accounts of Miley Corporation on January 1, 2014, were as follows. Preferred Stock (8%, $100 par noncumulative, 4,600 shares authorized...$276,000 Common Stock ($4 stated value, 337,100 shares authorized) .............. 1,078,720 Paid-in Capital in Excess of Par Value—Preferred Stock...........................13,800 Paid-in Capital in Excess of Stated Value—Common Stock.................... 539,360 Retained Earnings…………………………………………………………………………………692,900 Treasury Stock—(4,600 common shares)......... ……………………………………36,800 During 2014, the corporation had the following transactions and events pertaining to its stockholders’ equity. pertaining to its stockholders’ equity. Feb. 1 Issued 5,100 shares of common stock for $35,700. Mar. 20 Purchased 1,810 additional shares of common treasury stock at $8 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, 2014. Dec. 31 Determined that net income for the year was $278,400. Paid the dividend declared on December 1.

Explanation / Answer

Answer:

1 feb

                Cash         35700

                                           Common Stock (5,100 X $4)...............................                                   20,400

                                           Paid-in Capital in Excess of

                                              Stated Value—Common

                                              Stock...................................................................                                15300

Mar. 20 Treasury Stock—Common (1,810 X $8).........................................             14,480

                                           Cash ......................................................................             14,480

Oct. 1 Cash Dividends ($276,000 X .08).......................................................           22,080

                                           Dividends Payable................................................                                   22,080

Nov. 1 Dividends Payable         ........................................................... 22,080

                                           Cash ......................................................................           22,080

Dec. 1 Cash Dividends             161022

                                    [269680 + 5,100 – (4600 + 1810)] X $.60

                                           Dividends Payable................................................                                   161022

          Dec.       31     Income Summary..........................................................         278,400

                                           Retained Earnings...............................................                                 278,400

                        31     Retained Earnings.........................................................         183102

                                           Cash Dividends (22,080 + $161022)...................                                 183102

                        31     Dividends Payable.........................................................           161022

                                           Cash ......................................................................           161022

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