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At September 30, the end of Beijing Company\'s third quarter, the following stoc

ID: 2606052 • Letter: A

Question

At September 30, the end of Beijing Company's third quarter, the following stockholders' equity accounts are reported $12 par value Common stock, Paid-in capital in excess of par value, common stock Retained earnings $360,000 90,000 320,000 In the fourth quarter, the following entries related to its equity are recorded General Journal Debit 60,000 Credit Date Oct. 2 Retained Earnings Common Dividend Payable 60,000 Oct. 25 Common Dividend Payable 60,000 Cash 60,000 Oct. 31 Retained Earnings 75,000 Common Stock Dividend Distributable Paid-In Capital in Excess of Par Value, Common Stock 36,000 39,000 Nov. 5 Common Stock Dividend Distributable 36,000 Common Stock, $12 Par Value 36,000 Dec. 1 Memo-Change the title of the common stock account to reflect the new par value of $4 Dec. 31Income Summary 210,000 Retained Earnings 210,000

Explanation / Answer

Oct-02 Oct-25 Oct-31 Nov-05 Dec-01 Dec-31 Common stock $                                          360,000 $ 360,000 $                                          360,000 $360,000+$36,000 = $396,000 $ 396,000 $                                             396,000 Common stock dividend distributable $                                            36,000 Paid in capital in excess of par, common stock $                                            90,000 $    90,000 $90,000+$39,000 = $129,000 $                                           129,000 $                                             129,000 Retained earnings $320,000-$60,000 = $260,000 $ 260,000 $260,000-$75,000 = $185,000 $                                           185,000 $185,000+$210,000 = $395,000 Total equity $                                          710,000 $ 710,000 $                                          710,000 $                                           710,000 $                                             920,000

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