Answer 1 of 1 Done Journal entries Transaction General Journal Treasury Stock Ca
ID: 2544894 • Letter: A
Question
Answer 1 of 1 Done Journal entries Transaction General Journal Treasury Stock Cash (to record purchase 5000 shares of its own stock for $25 each) Credit $125,000.00 $125,000.00 Credit $25,000.00 $6,000.00 Transaction General Journal S31,000.00 Treasury Stock Paid in eapital in Excess of par Value,Treasury (to record sale of 1000 shares of treasury stock a S31 each) Transaction General Journal Credit Paid in capital in Excess of par Value.,Treasury 6,000.00 $14,000.00 Retained Earnings Treasury Stock (to record sale of 4000 shares of treasury stock @ $20 each) $100,000.00 Revised Equity section of Balance sheet after October 11 treasury stock purchase. Common stock-$10 par value, 72000 shares authorised, issued and outstanding Paid in Capital in excess of par value, Common stock Retained Earnings Treasury stock (5000 shares $25 each) Total Stockholders Equity $720,000,00 $216,000.00 $864,000.00 $125,000.00 $1,675,000.00Explanation / Answer
Answer
Year
Total cash dividend paid
Paid to preferred
Paid to Common
Dividends in Arrears at year end
Working for ‘’dividends in arrears’’
2015
$20000
$20000
0
$10000
(30000 – 20000)
2016
28000
28000
0
12000
(10000 + 30000 – 28000)
2017
200000
30000
170000
12000
[considering that $30000 is only paid is the correct answer, $12000 will continue as in arrear]
2018
350000
30000
320000
12000
Total
$598000
$108000
$490000
Year
Total cash dividend paid
Paid to preferred
Paid to Common
Dividends in Arrears at year end
Working for ‘’dividends in arrears’’
2015
$20000
$20000
0
$10000
(30000 – 20000)
2016
28000
28000
0
12000
(10000 + 30000 – 28000)
2017
200000
30000
170000
12000
[considering that $30000 is only paid is the correct answer, $12000 will continue as in arrear]
2018
350000
30000
320000
12000
Total
$598000
$108000
$490000
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