CALCULATOR FULL SCREEN PRINTER VERSION RCES ( BACK art Problem 11-2A (Part Level

Question

CALCULATOR FULL SCREEN PRINTER VERSION RCES ( BACK art Problem 11-2A (Part Level Submission) The stockholders' equity accounts of Flounder Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 4,500 shares authorized) $270,000 Common Stock ($5 stated value, 315,000 shares authorized) 1,312,499 Paid-in Capital in Excess of Par Value-Preferred Stock 13,500 Paid-in Capital in Excess of Stated Value-Common Stock 504,000 Retained Earnings 693,000 Treasury Stock (4,500 common shares) 36,000 - Study During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 5,310 shares of common stock for $31,860. Mar. 20 Purchased 2,000 additional shares of common treasury stock at $8 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Declared a $0.70 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Dec. 31 Determined that net income for the year was $285,000. Paid the dividend declared on December 1. Dec. 1 v (a) Journalize the transactions. (Include entries to close net income and dividends to retained Earnings.) (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal places, e.g. 5,275.) nent I Privacy Policy. I © 2000-2017 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. Version 4.24.3.3

Explanation / Answer

cash dividend workings- common stock:

Date Account Debit Credit Working Feb.1 Cash                  31,860 Common stock                  26,550 5310*5 Additional paid in captial common stock                     5,310 Balance [common stock issued] Mar.20 Treasury stock                  16,000 2000*8 Casj                  16,000 2000*8 [common stock repurchased,] Oct. 1 Retained earnings                  18,900 270000*7% Dividends payable to preference share holders                  18,900 [dividend on preferred stock declared] Nov.1 Dividends payable to preference share holders                  18,900 Cash                  18,900 [dividends distributed] Dec.1 Retained earings               1,33,905 Dividends payable to common share holders               1,33,905 [dividend on common stock declared] Dec.31 Dividends payable to common share holders               1,33,905 Cash               1,33,905 [dividends distributed] Dec.31 Income summary A/c               2,85,000 retained earnings               2,85,000 [ closed income summary account to retained earnings]

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