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PLUS Kimmel, Accounting, 6e ORION D Open Graded Problem 11-2A The stockholders.

ID: 2592409 • Letter: P

Question

PLUS Kimmel, Accounting, 6e ORION D Open Graded Problem 11-2A The stockholders. equity accounts of Pr a Colada Corp. on )anuary 1·2017, were as folows Preferred Stock (7%. S 100 par mninatve. 4,150 theres authorped) Common Stock ($5 stated value, 345,000 shares authorteed Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Vakue-Common Stook Retained Earnings Treasury Stock (4,150 common shares) 1249000 1,437 499 12,450 552,000 94,000 3,200 During 2017, the corporation had the following transactions and events pearing to its kholders' eq ity. Feb 1 Issued 4,540 shares of commen stock for $27,240 Mar. 20 Purchased 1,450 additional shares of common treasury stock at $7 per share Oct. 1 Dedared a 7% cash dividend on preferred steck, payable November 1. Nov. 1 Pald the dividend declared on October 1 Dec. 1 Declared a so.65 per share cash dividend Dec. 31 Determined that net income for the to cemmon stockholders of recond on December 15, payable December 31, 2017 year mas $276,60. Pad the didend dnciared on Deceber 1 Journalize the transactions. (Indude entries to dose net ncome and dividends to Retained Earnings) (Record entries me areer diplyedin the problem statement. Credit account titles are automatically indented when amount is entered. De not indent manualy, ir ao entry is reguire select "No Entry" for the account titles and enterfor tho amounts. Round answers to e decimal places, .. Date Account Titles and Explanation leyplus

Explanation / Answer

date

explanation

debit

credit

1-Feb

cash

27240

common stock

22700

additional paid in capital-common stock

4540

20-Mar

treasury stock

10150

cash

10150

1-Oct

retained earning

17340

cash dividend

17340

1-Nov

cash dividend

17340

cash

17340

31-Dec

retained earning

186185.9

cash dividend

186185.87

31-Dec

cash dividend

186185.9

cash

186185.87

31-Dec

income summary

276600

retained earning

276600

preferred stock

balance

249000

opening balance

249000

common stock

balance

1464739

opening balance

1437499

cash

27240

additional paid in capital-preferred stock

balance

12450

balance

12450

additional paid in capital-common stock

balance

556540

balance

552000

cash

4540

retained earnings

cash dividend

17340

balance

694000

cash dividend

186185.87

income summary

276600

balance

767074.13

cash dividend

cash

17340

retained earning

17340

cash

186185.87

retained earning

186185.87

treasury stock

balance

33200

balance

43350

cash

10150

Balance sheet

shareholders equity

preferred stock

249000

common stock

1464739

additional paid in capital-preferred stock

12450

additional paid in capital-common stock

556540

retained earnings

767074.1

less treasury stock

43350

total of share holders equity

3006453

no of common stock issued = value of common stock/face value

1437499/5

287499.8

no of common stock at year end

287499.8+4540-(4150+1450)

286439.8

dividend on common stock

286439.8*.65

dividend on preferred stock

(249000*7%)

17430

date

explanation

debit

credit

1-Feb

cash

27240

common stock

22700

additional paid in capital-common stock

4540

20-Mar

treasury stock

10150

cash

10150

1-Oct

retained earning

17340

cash dividend

17340

1-Nov

cash dividend

17340

cash

17340

31-Dec

retained earning

186185.9

cash dividend

186185.87

31-Dec

cash dividend

186185.9

cash

186185.87

31-Dec

income summary

276600

retained earning

276600

preferred stock

balance

249000

opening balance

249000

common stock

balance

1464739

opening balance

1437499

cash

27240

additional paid in capital-preferred stock

balance

12450

balance

12450

additional paid in capital-common stock

balance

556540

balance

552000

cash

4540

retained earnings

cash dividend

17340

balance

694000

cash dividend

186185.87

income summary

276600

balance

767074.13

cash dividend

cash

17340

retained earning

17340

cash

186185.87

retained earning

186185.87

treasury stock

balance

33200

balance

43350

cash

10150

Balance sheet

shareholders equity

preferred stock

249000

common stock

1464739

additional paid in capital-preferred stock

12450

additional paid in capital-common stock

556540

retained earnings

767074.1

less treasury stock

43350

total of share holders equity

3006453

no of common stock issued = value of common stock/face value

1437499/5

287499.8

no of common stock at year end

287499.8+4540-(4150+1450)

286439.8

dividend on common stock

286439.8*.65

dividend on preferred stock

(249000*7%)

17430

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