After looking into debt financing through notes, mortgage, and bonds payable. Tree Top Company decides to raise additional capital for a planned business expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following transactions, the balance in Common Stock on January 1, 2027 was $1,000,000 and included 200,000 shares of common stock issued and outstanding: (There was no Paid-In Capital in Excess of Par-Common.) Tree Top Company had the following transactions in 2027: (Click the icon to view the transactions.) Read the requirements, Requirements 1. Journalize the transactions. 2. Calculate the balance in Retained Earnings on December 31, 2027. Assume the balance on January 1,2027 was $5,750 and net income for the year was $406,000. 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2027. There was no preferred stock issued prior to the 2027 transactions. Dec. 15: Declared total cash dividends of $30,000. Dec. 20: Declared a 10% common stock dividend when the market value of the stock was $10.00 per share. Dec. 31: Paid the cash dividends. Dec. 31: Distributed the stock dividend. Requirement 2. Calculate the balance in Retained Eamings on December 31, 2027. Assume the balance on January 1, 2027 was $5.75 for the year was $406,000. Complete the table below to calculate the balance in Retained Earnings on December 31, 2027. Requirement 2. Calculate the balance in Retained Eamings on December 31,2027 . Assume the balance on January 1,2027 was $5.750 and net income for the year was $406,000. Complete the table below to calculate the balance in Retained Eamings on December 31, 2027. Requirement 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2027. There was no preferred stock issued prior to the 2027 transactions. Review the joumal entries from Requirement 1. After looking into debt financing through notes, mortgage, and bonds payable. Tree Top Company decides to raise additional capital for a planned business expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following transactions, the balance in Common Stock on January 1, 2027 was $1,000,000 and included 200,000 shares of common stock issued and outstanding: (There was no Paid-In Capital in Excess of Par-Common.) Tree Top Company had the following transactions in 2027: (Click the icon to view the transactions.) Read the requirements, Requirements 1. Journalize the transactions. 2. Calculate the balance in Retained Earnings on December 31, 2027. Assume the balance on January 1,2027 was $5,750 and net income for the year was $406,000. 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2027. There was no preferred stock issued prior to the 2027 transactions. Dec. 15: Declared total cash dividends of $30,000. Dec. 20: Declared a 10% common stock dividend when the market value of the stock was $10.00 per share. Dec. 31: Paid the cash dividends. Dec. 31: Distributed the stock dividend. Requirement 2. Calculate the balance in Retained Eamings on December 31, 2027. Assume the balance on January 1, 2027 was $5.75 for the year was $406,000. Complete the table below to calculate the balance in Retained Earnings on December 31, 2027. Requirement 2. Calculate the balance in Retained Eamings on December 31,2027 . Assume the balance on January 1,2027 was $5.750 and net income for the year was $406,000. Complete the table below to calculate the balance in Retained Eamings on December 31, 2027. Requirement 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2027. There was no preferred stock issued prior to the 2027 transactions. Review the joumal entries from Requirement 1
