Anne Cleves Company reported the following amounts in the stockholders’ equity s

Question

Anne Cleves Company reported the following amounts in the stockholders’ equity section of its December 31, 2013, balance sheet.

During 2014, Cleves took part in the following transactions concerning stockholders’ equity.

(a) Prepare journal entries to record the transactions described above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(b) Prepare the December 31, 2014, stockholders’ equity section. Assume 2014 net income was $343,500. (Enter account name only .Do not provide any descriptive information.)

Preferred stock, 11%, $100 par (10,000 shares authorized, 2,470 shares issued) $247,000 Common stock, $5 par (126,500 shares authorized, 25,300 shares issued) 126,500 Additional paid-in capital 132,800 Retained earnings 459,600    Total $965,900

Explanation / Answer

a)

Dividend on preferred stock

Dividend on common stock

Cash

27170

101200

128370

Share capital account

Profit & Loss reserves

Treasury stock

8000

54400

62400

Treasury Stock

Land

34320

Bank account

Share premium account

Preferred stock

54600

4600

5000

Stock dividend

Common stock

118500

118500

Dividends

Dividend payable

128370

Stockholder's equity

Net Income $343500

Less: Dividends $128370

Less: Loss on issue of treasury shares $54400

Add: share premium amount $4600

Retained earnings $165330

Equity (126500 - 8000 + 118500) $237000

Preferred stock (247000 + 5000) $252000

Total Equity $654330

No. Particulars Debit Credit 1

Dividend on preferred stock

Dividend on common stock

Cash

27170

101200

128370

2

Share capital account

Profit & Loss reserves

Treasury stock

8000

54400

62400

3

Treasury Stock

Land

34320

34320

4

Bank account

Share premium account

Preferred stock

54600

4600

5000

6

Stock dividend

Common stock

118500

118500

7

Dividends

Dividend payable

128370

128370

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.