Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Huge multi-part question. Problem 11-2A The stockholders' equity accounts of Cyrus Corporation on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative,

image text in transcribedimage text in transcribedimage text in transcribedHuge multi-part question.

Problem 11-2A The stockholders' equity accounts of Cyrus Corporation on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) Common Stock ($4 stated value, 300,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capita in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (5,000 common shares) $300,000 1,000,000 15,000 480,000 688,000 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. Issued 5,000 shares of common stock for $30,000 Mar. 20 Purchased 1,000 additional shares of common treasury stock at $7 per share Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1 Nov. 1 Paid the dividend declared on October 1 Dec. 1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017 Dec. 31 Determined that net income for the year was $280,000. Paid the dividend declared on December 1 Your answer is partially correct. Try again. Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Feb. 1Cash 30000 Common Stock 20000 Paid-in Capital in Excess of Stated Value-Common Stock 10000 Mar. 20Treasury Stock Cash 7000 Oct. 1 : Dividends Expense 21000 Dividends Payable 21000 Nov. 1 Dividends Payable 21000 Cash 21000 Dec. 1 Cash Dividends 124500 Dividends Payable 124500 Dec. 31 Income Summary 280000 Retained Earnings 280000 To record net income) Dec. 31 Retained Earnings 145500 Dividends Payable 45500 (To close cash dividends) Dec. 31 Dividends Payable 127500 Cash 127500 To record payment of cash dividends payable)

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

Auditing An Assertions Approach

Authors: G. William Glezen, Donald H. Taylor

7th Edition

047113421X, 978-0471134213

More Books

Students also viewed these Accounting questions