Question
On December 31, 2016, Turner Corp. had the following balances (all balances are normal): Accounts Amount Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares
On December 31, 2016, Turner Corp. had the following balances (all balances are normal):
Accounts | Amount |
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding) | $1,000,000 |
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding) | $1,000,000 |
Paid-in Capital in Excess of par, Common | 150,000 |
Retained Earnings | 700,000 |
The following events occurred during 2016 and WERE NOT RECORDED:
On January 1, Turner Corp. declared a 5% stock dividend on its common stock when the market value of the common stock was $12 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
On February 15, Turner Corp. reacquired 1,000 shares of common stock for $15 each.
On March 31, Turner Corp. reissued 250 shares of treasury stock for $20 each.
On July 1, Turner Corp. reissued 500 shares of treasury stock for $10 each.
On October 1, Turner Corp. declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
On December 15, Turner Corp. split common stock 2 shares for 1.
Net Income for 2015 was $250,000.
Requirements:
Prepare journal entries for the transactions listed above.
Prepare a Stockholders' section of a classified balance sheet as of December 31, 2015 (after taking into consideration your journal entries)
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