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On January 1, 2022, MaryKay's Stockholders' equity accounts are as follows: Common Stock $3 par (120,000 shares authorized, 55,000 shares issued) $165,000 PIC in Excess
On January 1, 2022, MaryKay's Stockholders' equity accounts are as follows:
Common Stock $3 par (120,000 shares authorized, 55,000 shares issued) $165,000
PIC in Excess par - Common Stock $130,000
Retained Earnings $580,000
Treasury Stock (8,000 shares at cost) $80,000
The following transactions occurred during the year:
1/05: Declared a cash dividend of $1.10 per share on the common stock outstanding.
2/10: Paid the cash dividend that was previously declared on 1/05.
3/24: Issued 12,000 shares of common stock for $12 per share.
5/23: Reissued 4,500 shares of the treasury stock at $15 per share.
8/01: The directors declared a 2% stock dividend to be distributed on 10/15. The market value is $40 per share on this date.
10/15: Distributed the Stock Dividend declared on 8/01.
11/17: Reissued the remaining 3,500 shares of treasury stock for $8 per share.
12/30: Declared a cash dividend of $1.20 per share on the common stock outstanding. The dividend will be paid next year.
12/31: Closed the 55,000 credit balance of the income summary account.
12/31: Closed the dividends accounts.
1. Complete the journal entries for the above transactions
2. Complete the statement of stockholders equity.
Common Stock $3 par (120,000 shares authorized, 55,000 shares issued) $165,000
PIC in Excess par - Common Stock $130,000
Retained Earnings $580,000
Treasury Stock (8,000 shares at cost) $80,000
The following transactions occurred during the year:
1/05: Declared a cash dividend of $1.10 per share on the common stock outstanding.
2/10: Paid the cash dividend that was previously declared on 1/05.
3/24: Issued 12,000 shares of common stock for $12 per share.
5/23: Reissued 4,500 shares of the treasury stock at $15 per share.
8/01: The directors declared a 2% stock dividend to be distributed on 10/15. The market value is $40 per share on this date.
10/15: Distributed the Stock Dividend declared on 8/01.
11/17: Reissued the remaining 3,500 shares of treasury stock for $8 per share.
12/30: Declared a cash dividend of $1.20 per share on the common stock outstanding. The dividend will be paid next year.
12/31: Closed the 55,000 credit balance of the income summary account.
12/31: Closed the dividends accounts.
1. Complete the journal entries for the above transactions
2. Complete the statement of stockholders equity.
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1 Journal Entries a January 5 Dividends 55000 shares 110 60500 Dividends Payable 60500 To record the declaration of cash dividend b February 10 Divide...Get Instant Access to Expert-Tailored Solutions
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