Buzz Newsstand is authorized to issue 100,000 shares of $5 par common stock and 5,000 shares of $100 par, preferred 8% stock. On January 1, the beginning of the period, the stockholders' equity accounts had the following balances: Preferred Stock Paid-in Capital in Excess of ParPreferred Common Stock Paid-in Capital in Excess of ParCommon Retained Earnings DividendsPreferred Dividends-Common $150,000 11.250 225,000 112,500 366,800 BUZZ MEMORANDUM 635 NEWSSTAND Union Terminal Building, #101 Tacoma, WA 98402 TO: Accounting Clerk FROM: Corporate Accountant as per Board of Directors' Meeting DATE: March 15, 20-- SUBJECT: Declared Dividends QBUZZ MEMORANDUM 828 NEWSSTAND Union Terminal Building, #101 Tacoma, WA 98402 TO: Accounting Clerk FROM: Corporate Accountant as per Board of Directors' Meeting DATE: September 1, 20-- SUBJECT: Declared Dividends The board of directors approved a semiannual cash dividend of $62,250 for preferred and common stockholders. The dividend is payable to stockholders of record as of April 15 with payment on May 1. The board of directors approved a semiamual cash dividend of 879,250 for preferred and common stockholders. The dividend is payable to stockholders of record as of October 1 with payment on November 1. BUZZ MEMORANDUM 651 s. 79.250.00 No. 2451 Cate November 1 To Dividends Checking Account For Dividends Payable 20- NEWSSTAND Union Terminal Building, #101 Tacoma, WA 98402 Accounting Clerk FROM: Corporate Accountant as per Board of Directors' Meeting DATE: April 19, 20-- SUBJECT: Stock Issued for Cash Dollars Cents Balance brought forward | 323,908 00 Add deposits Total We have issued 500 shares of preferred stock at $108. Less this check Balance carried forward 323,908 00 79,25000 244,658 00 FBUZZ MEMORANDUM 907 NEWSSTAND Union Terminal Building, #101 Tacoma, WA 98402 20 $ 62.250.00 No. 1256 Dato May 1 TDividends Checking Account Rar Dividends Payable Dolars Conts Balance brought forward 357,225 00 Add deposits Accounting Clerk FROM: Corporate Accountant DATE: December 31, 20-- SUBJECT: Closing Entries Close the Retained Earnings account in the amount of the net income of $296,490 Remember to close the Dividends accounts into Retained Earnings as well. 357,225 Total Lees this check Balance caled forward 62.250 00 294,97500 2. Prepare the stockholders' equity section of the Balance Sheet. The totals will be automatically calculated Buzz Newsstand Balance Sheet (Partial) December 31, 20-- Stockholders' Equity 10,000 Paid-in Capital 8% Preferred Stock, $100 par 5,000 shares authorized 2,000 shares issued Paid-in Capital in Excess of Par-Preferred Common Stock, $5 par 100,000 shares authorized 45,000 shares issued Paid-in Capital in Excess of Par-Common Total Paid-in Capital Retained Earnings Total Stockholders' Equity 225,000 112,500 347,500 296,490 643,990
