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.

36,800

During 2014, the corporation had the following transactions and events pertaining to its stockholders’ equity.

Determined that net income for the year was $280,200. Paid the dividend declared on December 1.

Journalize the transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Preferred Stock (8%, $100 par noncumulative, 4,600 shares authorized) $276,000 Common Stock ($4 stated value, 306,400 shares authorized) 980,480 Paid-in Capital in Excess of Par Value—Preferred Stock 13,800 Paid-in Capital in Excess of Stated Value—Common Stock 245,120 Retained Earnings 702,800 Treasury Stock—(4,600 common shares)

36,800

Explanation / Answer

Date Particulars Debit Credit 1-Feb Cash 33600     Common Stock 19200     Paid in capital in excess of stated value - common stock 14400 Issued common stock of stated value 4, =4800 x 4, = 19200 and recorded excess amount in additional paid in capital 20-Mar Treasury stock 15760.00        Cash 15760 Purchase of common stock at 8 per share 1-Oct Retained earnings 22080.00            Cash Dividend payable 22080 Declared dividend on 276000 of preference stock at 8 % , = 22080 1-Nov Cash Dividend payable 22080            Cash 22080 Cash dividend declared on oct 1 , now paid 15-Dec Retained earnings 190840            Cash Dividend payable 190840 Declared dividend on balance acommmon stock holder issued = 980480 / 4, = 245120 held as treasury stock = 4600 + 1970, = 6570 Stocholder on dec 15 = 245120 -6570, = 238550 Dividend declared = 238550 x 0.80 per share = 190840 31-Dec Cash Dividend payable 190840            Cash 190840 Cash dividend declared on dec 15 , now paid 31-Dec Income summary 280200       Retained earnings 280200 Transfer of net income from income summary or statemnet of income to retained earnings

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