Lemke Corporation produces and sells piano. The Stockholders\' Equity accounts o

Question

Lemke Corporation produces and sells piano. The Stockholders' Equity accounts on January 1, 2017 are as follows Common Stock, $10 par (100,000 shares authorized, 40,000 shares issued) PIC in Excess par-Common Stock Retained Earnings Treasury Stock (10,000 shares at cost) $400,000 200,000 900,000 200,000 The following transactions occurred during the year Declared a Cash Dividend of $0.80 per share on the Common Stock outstanding. Dividend will be paid on 2/16. Pald the Cash Dividend that was previously deciared on 1/16. Reissued 5,000 shares of the Treasury Stock at $25 per share. Issued 15,000 shares of Common Stock for $30 per share. The directors declare a 2% stock dividend distributable on 9/13. The market value is $40 per share on this date 1/16 2/16 3/19 4/13 8/03 9/13 Distributed the Stock Dividend declared on 8/03. 11/17 Reissued the remaining 5,000 shares of Treasury Stock for $18 per share. 12/30 Declared a Cash Dividend of $0.90 per share on the Common Stock outstanding. The dividend will be paid on 1/30. 12/31 Closed the $80,000 credit balance of the Income Summary account. 12/31 Closed the dividends accounts

Explanation / Answer

By Retainer earning

To Divident Payble

(40000 shares at $0.80 er share)

By Divident payble

To Cash/Bank

(being divident paid)

By Bank A/C 125000

To Treasury Share Capital

To Security Premium

100000

25000

By Bank

To Common Stock

To Security Premium

(face value of shares issued 10, premium 20 per share)

450000

150000

300000

By Retained earning

To Divident payble

(40000 shares at 0.2 divident per share)

8000

By Divident Payble

To bank

8000

BY bank A/C

By Discount on issued share

TO Treasry Capital

(treasury shares issued at discount of 2 per share)

90000

10000

100000

By retained earning

To divident oayble on common stock

(total 40000+15000(newly issued) common stock at $ 0.90 per share)

49500

Date Particulars DR(Amount) CR(Amount) 01/16

By Retainer earning

To Divident Payble

(40000 shares at $0.80 er share)

32000 32000 02/16

By Divident payble

To Cash/Bank

(being divident paid)

32000 32000 03/19

By Bank A/C 125000

To Treasury Share Capital

To Security Premium

100000

25000

04/13

By Bank

To Common Stock

To Security Premium

(face value of shares issued 10, premium 20 per share)

450000

150000

300000

08/03

By Retained earning

To Divident payble

(40000 shares at 0.2 divident per share)

8000

8000 09/13

By Divident Payble

To bank

8000

8000 11/17

BY bank A/C

By Discount on issued share

TO Treasry Capital

(treasury shares issued at discount of 2 per share)

90000

10000

100000

12/30

By retained earning

To divident oayble on common stock

(total 40000+15000(newly issued) common stock at $ 0.90 per share)

49500

49500 Retained Earning at the begining 900000 divident paid (40000) balance 860000

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