P 11-6

The following information relates to River Valley Produce Limited as at December 31, 2019:

Stockholders' Equity

Capital stock

Preferred stock, $8, stated value $100, non

voting

Authorized 1,000 shares

Issued and outstanding 150 shares

Common stock, stated value $5, voting Authorized 10,000 shares

Issued and outstanding 4,800 shares

Total contributed capital Retained earnings

Total stockholders' equity

The following transactions occurred during 2020:

1. Reacquired 400 shares of common stock at $10 each; held as
2. treasury stock.
3. Split the common stock 2 for 1.
4. Issued an additional 200 shares of common stock for $3 cash each.
5. Transferred net income of $19,500 from the Income Summary

$15,000

24,000

$ 39,000

40,000 $79,000

account in the general ledger to the Retained Earnings account.

e. The board authorized a $5,000 of retained earnings to be restricted

for plant expansion.*

*complete only if Appendix 2 is covered

Required:

1. Prepare journal entries for the 2020 transactions.
2. Prepare the statement of changes in equity for the year ended
3. December 31, 2020.
4. What amount of is available for distribution to stockholders as of
5. December 31, 2020?