4. Prepare a worksheet for the year ended December 31, 2019 Chat OT ACCOUNTS ACCOUNT baldilles Ull Jaliudly 1, 20 Account Number Account Name Debit Credit Cash 101 103 104 $176,000 170,000 $ 5,000 Accounts Receivable Allowance for Doubtful Accounts Subscriptions Receivable-Common Stock Interest Receivable 105 Merchandise Inventory 131 141 150,000 85,000 225,000 151 152 22,500 70,000 161 162 202 14,000 75,000 2,500 17,000 203 205 206 207 211 212 301 302 303 304 305 306 Land Buildings Accumulated Depreciation-Buildings Furniture and Equipment Accumulated Depreciation-Furniture and Equipment Accounts Payable Interest Payable Estimated Income Taxes Payable Dividends Payable-Preferred Stock Dividends Payable-Common Stock 10-year, 10% Bonds Payable Premium on Bonds Payable 5% Preferred Stock ($100 par, 10,000 shares authorized) Paid-In Capital in Excess of ParPreferred Stock Common Stock ($10 par, 100,000 shares authorized) Paid-in Capital in Excess of Par-Common Stock Common Stock Subscribed Common Stock Dividend Distributable Retained Earnings Appropriated Retained Eamings Unappropriated Treasury Stock-Preferred Income Summary Sales Purchases Operating Expenses Interest Income Gain on Early Retirement of Bonds Payable Interest Expense Income Tax Expense Totals 100,000 2,625 100,000 10,000 200,000 25,000 311 312 100,000 202,375 343 399 401 501 601 701 711 751 801 $876,000 $876,000 TRANSACTIONS FOR 2019 DATE Jan. 5 15 1 Apr. July 1 26 Aug. 12 Oct. 1 Issued 1,000 shares of 5 percent $100 par preferred stock for $101 per share. (The corporation has been authorized to issue 10,000 shares of preferred stock.) Paid estimated income taxes of $17,000 accrued at the end of 2018. Paid semiannual bond interest on the 10-year, 10 percent bonds payable and amortized the premium for the period since December 31, 2018. (The interest and premium were recorded as of December 31, 2018; the entry was not reversed.) The bonds were issued on October 1, 2017, at a price of 103, and they mature on October 1, 2027. Use straight-line amortization. The Orange Company's board of directors declared a cash dividend of $0.10 per share on the common stock. The dividend is payable on July 26 to stockholders of record as of July 15. Paid the cash dividend on the common stock. A purchaser of 600 shares of preferred stock issued on January 5 asked the corporation to repurchase the shares. The corporation repurchased the stock for $102 per share. The stock is to be held by the corporation until it can be resold to another purchaser. Paid the semiannual bond interest and recorded amortization of the bond premium. Because of its good cash position and current bond prices, The Orange Company repurchased and retired $20,000 par value of the 10 percent bonds that it has outstanding. The repurchase price was 98, plus accrued interest. The company's board of directors declared a cash dividend of $5 per share on the outstanding preferred stock. This dividend is payable on January 10 to stockholders of record as of December 31. The board of directors also declared a 10 percent stock dividend on the outstanding common stock. The new shares are to be distributed on January 10 to stockholders of record as of December 31. At the time the dividend was declared, the common stock had a fair market value of $15 per share. Received a subscription for 500 shares of The Orange Company's common stock at $12 per share from the company's president. Received cash equal to one-half the purchase price on the date of subscription. The balance of the purchase price is to be paid on January 15, 2020. (The subscriber will not be entitled to the stock dividend previously declared on the outstanding shares of common stock.) Because the management of Orange foresees the need to expand a warehouse the firm owns, the board of directors has restricted future dividend payments. Record the appropriation of $100,000 of retained earnings for plant expansion