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 leyplusExplanation / 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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