4/10/04, 12:48 PM Started on Sunday, 7 April 2024, 4:54 PM State Finished Question 5 Partially correct Mark 8.33 out of 10.00 Retained Earnings: Transactions and Statement Ask your instructor The stockholders' equity of Carly Corporation at January 1 follows: 6 Percent preferred stock, $10 par value, 40,000 shares authorized: 25,000 shares issued and outstanding $250,000 Common stock, $1 par value, 300,000 shares authorized; 80,000 shares issued and outstanding 80,000 Paid-in capital in excess of par value-Common stock 560,000 Retained eamings 830,000 Total Stockholders' Equity $1,720,000 Chapter 11 Homework The following transactions, among others, occurred during the year. June 18 Declared a 70 percent stock dividend on all outstanding shares of common stock. The market value of the stock was $14 per share. July 1 Issued the stock dividend declared on June 18. Dec. 20 Declared the annual cash dividend on the preferred stock and a cash dividend of $1.80 per share on the common stock, payable on January 20 to stockholders of record o Required a. Prepare journal entries to record the foregoing transactions. Date Jun.18 Stock Dividends General Journal Description Debit Credit . 56,000 $ Stock Dividends Distributable 0 56,000 Declared stock dividend. JULI Stock Dividends Distributable 56,000 Common Stock 56,000 Issued common shares as stock dividend Dec 20 Cash Dividends Dividends Payable - Preferred Stock Dividends Payable - Common Stock 0 x 0 x 15,000 0 x Declared a cash dividend on preferred and common stock outstanding b. Prepare a statement of retained earnings. The net income for the year is $500,000. Do not use negative signs with your answers. CARLY CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 $ 830,000 Add: Net Income 500,000 1,330,000 Less Cash Dividends Declared Stock Dividends Declared 0x 56,000 0x Retained Earnings, December 31 $ 0x Partially correct Marks for this submission: 8.33/10.00.