The stockholder's equity accounts of Sky Inc. on January 1, 2019, contained the following balances: The transactions

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The stockholder's equity accounts of Sky Inc. on January 1, 2019, contained the following balances:

Preferred Stock (6%, $100 par value, 2,000 shares authorized) $100,000 Issued and Outstanding, 1,000 shares Common Stock


The transactions affecting stockholders’ equity during 2019 are given below. The worksheet at the end of 2019 showed a net loss of $5,000.


INSTRUCTIONS
1. Set up a ledger account (381) for Retained Earnings and record the January 1, 2019, balance.
2. Record the following transactions in general journal form using page 6. Use the account titles used in the text. No descriptions are required. Post these entries to the Retained Earnings account only.
3. Prepare a statement of retained earnings for the year 2019.

DATE TRANSACTIONS June 15 Declared a semiannual 3 percent cash dividend on preferred stock and a cash dividend of $1.00

Analyze: What balances should be reflected in the Dividends Payable—Preferred account on December 31, 2019?

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College Accounting Chapters 1-30

ISBN: 978-1259631115

15th edition

Authors: John Price, M. David Haddock, Michael Farina

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