Retained Earnings Accounts and Statement 1. Prepare journal entries for the tran

Question

Retained Earnings Accounts and Statement

1. Prepare journal entries for the transactions.

If an amount box does not require an entry, leave it blank.

2. Post all entries affecting the retained earnings accounts to T accounts.

3. Prepare a statement of retained earnings for the year ended December 31, 20--.

On January 1, 20--, Glover Company's retained earnings accounts had the following balances:

During the year ended December 31, 20--, Glover completed the following selected transactions:

Appropriated for land acquisition $ 57,000 Unappropriated retained earnings 916,000 $ 973,000 GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 20-- Mar. 20 Cash Dividends Preferred Dividends Payable Apr. 15 Oct. 10 Nov. 10

Explanation / Answer

1)JOURNAL:

2)T ACCOUNTS:

3)

DATE DESCRIPTION POST REF. DEBIT CREDIT MARCH 20 RETAINED EARNINGS 27,000 DIVIDENDS PAYABLE-PREFERRED STOCK(10,000*$0.7 PER SHARE) 7,000 DIVIDENDS PAYABLE-COMMON STOCK(100,000*$0.2 PER SHARE) 20,000 APRIL15 DIVIDENDS PAYABLE-PREFERRED STOCK 7,000 DIVIDENDS PAYABLE-COMMON STOCK 20,000 CASH 27,000 OCT 10 RETAINED EARNINGS 27,000   DIVIDENDS PAYABLE-PREFERRED STOCK(10,000*$0.7 PER SHARE) 7,000 DIVIDENDS PAYABLE- COMMON STOCK(100,000*$0.2 PER SHARE) 20,000 NOV 10 DIVIDENDS PAYABLE-PREFERRED STOCK 7,000 DIVIDENDS PAYABLE-COMMON STOCK 20,000 CASH 27,000 NOV 17 RETAINED EARNINGS(100,000 * 5% *$16) 80,000 COMMON STOCK DIVIDEND DISTRIBUTABLE(5000*$5) 25,000 PAID IN CAPITAL IN EXCESS OF PAR -COMMON CAPITAL 55,000 DEC 15 COMMON STOCK DIVIDEND DISTRIBUTABLE 25,000 COMMON STOCK 25,000 DEC 31 INCOME SUMMARY 281,000 RETAINED EARNINGS 281,000

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