Need help on this problem please! P10-68A. (Learning objectives 2, 3, 4:Account

Question

Need help on this problem please! P10-68A. (Learning objectives 2, 3, 4:Account for stock issuance, dividends, and treasury stock) CZ ewelry Company reported the following summarized balance sheet at December 3 2014: Assets 61,000 Current assets. 108,700 Property and equipment, net $169,700 Total assets Liabilities and Equity 34,000 Liabilities Stockholders' equity: $0.50 cumulative preferred stock, $20 par, 900 shares issued 18,000 56,800 Common stock, $8 par, 7,100 shares issued 17,900 Paid-in capital in excess of par-common 43,000 Retained earnings 169,700 Total liabilities and equity

Explanation / Answer

Date Account title and explanation Debit($) Credit($) 13-Feb Cash 64000           Common Stock 51200           Paid in capital in excess of par 12800 To record the issue of common stock 7-Jun Retained earnings 4500               Dividend Payable 4500 To record the declaration of the dividend 24-Jun Dividend Payable 4500               Cash 4500 To reocrd the payment of preferred dividend 9-Aug Retained earnings 20250               Common stock 10800               Paid in capital in excess of par 9450 To record the stock dividend declared 26-Oct Treasury Stock 14400              Cash 14400 To record the repurchase of treasury stock 20-Nov Cash 4000          Treasury stock 3600 Paid in capital from treasury stock 400 To record the sale of the Acquired treasury stock 31-Dec Retained Earnings (7100+6400-800+200)*0.25 3225          Dividend payable on common stock 3225 To record the dividend declared on common stock Stock holders Equity Amount($) Preference stock 18000 Common Stock @$8 par 13500 shares 108000 Paid in capital in excess 40650 Retained earnings 15025 Less: Treasury stock -10800 total Laibilities and Equity 170875

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