edugen.wileyplus.com +0 iness I Chron.com Top 10 Diversity Issues at Work1 Chron

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edugen.wileyplus.com +0 iness I Chron.com Top 10 Diversity Issues at Work1 Chron.com wileyPLUS Kimmel, Accounting, 4e Heip I System CALCULATO PRINTER VERSON 4 BACK Problem 11-2A The stockholders' equity accounts of Omega Corporation on January 1, 2012, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,400 shares authorized) 324,000 Common Stock ($3 stated value, 346,200 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock-Common (5,400 shares) 830,880 16,200 553,920 683,100 43,200 During 2012, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 5,200 shares of common stock for $36,400. Mar. 20 Purchased 1,390 additional shares of common treasury stock at $8 per share. Oct. 1 Declared a 7% cash 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, on stock, payable No vember1 payable Decembe 31, 2012. Dec. 31 Determined that net income for the year was $284,200. Paid the dividend declared on December 1. (a) Your answer is partially correct. Try again. 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.)

Explanation / Answer

1-Feb Cash Dr 36400             Common stock Cr 15600             Paid in capital in excess of stated value- common stock Cr 20800 ( To record issuance of common stock ) 20-Mar Treasury stock Dr 11120                Cash Cr 11120 ( To record purchase of treasury stock) 1-Oct Dividend - preference shares Dr 22680                  Dividend payable Cr 22680 ( To record dividend payable on preference shares 324000*7%) 1-Nov Dividend payable Dr 22680                Cash Cr 22680 ( To record payment of dividend payable) 1-Dec Retained earnings Dr 165222                  Dividend payable Cr 165222 ( To record dividend payable on common stock 275372 * 0.60) Number of shares 276960 Add : further issued 5200 Less treasury stock ( opening) 5400 Less treasury stock ( additional) 1390 Number of shares - closing 275370 Value of per share 3 Total value 826110 31-Dec Net Income Dr 284200              Retained earnings Cr 284200 ( to record closing of net income) 31-Dec Dividend payable Dr 165222                Cash Cr 165222 ( To record payment of dividend payable)

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