Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bridge Company has the following owner equity information as of January 1, 2012: During 2012, the company had the following transactions take place: 1) January
Bridge Company has the following owner equity information as of January 1, 2012: During 2012, the company had the following transactions take place: 1) January 1 , the company issued 20,000 shares for total cash of $160,000 2) February 1, the company issued 5000 shares in payment of a new delivery truck worth $30,000 3) February 2, the company declared a 2 for 1 stock split, the shares are trading at 7.00 on the Kipp Stock Exchange on this day 4) March 1 the company declared the preferred share dividend, to be payable March 14 to shareholders of record on March 5 5) March 14, paid the divided declared on March 1 6) June 10 , the company repurchased and retired 2,000 common shares at $8 per share 7) December 15 , being short of cash, the company declared a 20% stock dividend to be distributed to its shareholders on Dec 24. The shares are trading on the Kipp Stock Exchange for 2.00 on Dec 15. 8) Dec 17 , the company issued 900 preferred shares for total cash of $90,000 9) Dec 24, distributed the stock dividend along with a bonus lump of coal for each shareholder (the coal was found in the coulee and has no stated value) 10) Dec 31 , closed the dividends declared account 11) Dec 31, the company announced a net income of $81,000 12) Jan 5 , the company declared the required preferred stock dividend and also a common stock cash dividend of $1.25 per share, to be paid on Jan 30 . 13) Jan 30 , paid the cash dividends declared on Jan 5. 14) April 1, the company repurchased and retired 50,000 common shares at a cost of $1.00 each Instructions: 1) Record the journal entries for each of the above transactions 2) What is the balance of the Retained Earnings account on December 31, 2012
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started