Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Common stock $5 stated value (900,000 shares authorized, 620,000 shares issued)................. $3,100,000 Paid-in capital in excess o stated value-common stock ....1,240,000 Retained Earnings ....$4,875,000 Treasury

image text in transcribed

Common stock $5 stated value (900,000 shares authorized, 620,000 shares issued)................. $3,100,000 Paid-in capital in excess o stated value-common stock ....1,240,000 Retained Earnings ....$4,875,000 Treasury Stock (48,000 shares at cost) .... 288,000

The following selected transactions occurred during the year: Jan 15: Paid cash dividends of $0.06 per share on common stock. The dividend had been properly recorded when declared on Dec. 1 of the preceding fiscal year for $34320

Mar.15 Sold all the treasury stock for $6.75 per share.

Apr 13. Issued 200,000 shares of common stock for $8 per share.

June 14. Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock which is $7.50 per share.

July 16. Issued the certificates for the dividend declared for $6 per share.

Dec 30 Declared a $0.08 per share dividend on common stock 31 Closed the credit balance of the income summary account, $775,000. 31. Closed the two dividends accounts to retained earnings.

ENTER INTO T ACCOUNTS.

Enter a zero for the final balance if appropriate. Common Stock Paid-In Capital in Excess of Stated Value Retained Earnings Treasury Stock Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Stock Dividends Cash Dividends Enter a zero for the final balance if appropriate. Common Stock Paid-In Capital in Excess of Stated Value Retained Earnings Treasury Stock Paid-In Capital from Sale of Treasury Stock Stock Dividends Distributable Stock Dividends Cash Dividends

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions