PharoahCorporation has the following capital structure at the beginning of the year: 4% Preferred stock, $50 par
Question:
PharoahCorporation has the following capital structure at the beginning of the year:
4% Preferred stock, $50 par value, 20,000 shares authorized,6,000shares issued and outstanding$300,000Common stock, $10 par value, 60,000 shares authorized,40,000shares issued and outstanding400,000Paid-in capital in excess of par112,000Total paid-in capital812,000Retained earnings430,000Total stockholders' equity$1,242,000
(a)
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Record the following transactions which occurred consecutively.(Credit account titles 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.)
1.A total cash dividend of $90,000was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.2.A 15% common stock dividend was declared. The average fair value of the common stock is $22a share.3.Assume that net income for the year was $147,000(record the closing entry) and the board of directors appropriated $69,000of retained earnings for plant expansion.
No.
Account Titles and Explanation
Debit
Credit
1.
Buildings
Equipment
Property Dividends Payable
Dividends Payable - Common
Discount on Bonds Payable
Paid-in Capital from Treasury Stock
Paid-in Capital in Excess of Par - Preferred Stock
Paid-in Capital in Excess of Stated Value - Common Stock
Share Capital-Preference
Dividends Payable - Preferred
Share Premium-Conversion Equity
Cash
Organization Expense
Legal Fees Expense
Retained Earnings
Unrealized Holding Gain or Loss - Income
Share Premium-Ordinary
Income Summary
Retained Earnings Appropriated for Plant Expansion
Preferred Stock
Land
Unamortized Bond Issue Costs
Paid-in Capital in Excess of Par - Common Stock
Share Capital-Ordinary
Debt Investments
No Entry
Equity Investments
Common Stock Dividend Distributable
Common Stock
Treasury Stock
Bonds Payable
Dividends Payable - Preferred
Unamortized Bond Issue Costs
Income Summary
Share Premium-Ordinary
Dividends Payable - Common
Common Stock Dividend Distributable
Unrealized Holding Gain or Loss - Income
Paid-in Capital in Excess of Par - Preferred Stock
Share Premium-Conversion Equity
Debt Investments
Retained Earnings
Property Dividends Payable
Bonds Payable
Buildings
Equipment
No Entry
Treasury Stock
Equity Investments
Organization Expense
Cash
Paid-in Capital in Excess of Par - Common Stock
Paid-in Capital in Excess of Stated Value - Common Stock
Common Stock
Share Capital-Preference
Share Capital-Ordinary
Legal Fees Expense
Discount on Bonds Payable
Land
Preferred Stock
Retained Earnings Appropriated for Plant Expansion
Paid-in Capital from Treasury Stock
Legal Fees Expense
Bonds Payable
Equipment
Common Stock Dividend Distributable
Paid-in Capital in Excess of Par - Preferred Stock
Paid-in Capital in Excess of Par - Common Stock
Unrealized Holding Gain or Loss - Income
Income Summary
Equity Investments
Discount on Bonds Payable
Unamortized Bond Issue Costs
Common Stock
Retained Earnings Appropriated for Plant Expansion
Share Capital-Ordinary
Cash
Buildings
Paid-in Capital from Treasury Stock
Preferred Stock
Property Dividends Payable
Share Premium-Ordinary
Organization Expense
Land
Debt Investments
No Entry
Share Premium-Conversion Equity
Treasury Stock
Paid-in Capital in Excess of Stated Value - Common Stock
Retained Earnings
Dividends Payable - Preferred
Dividends Payable - Common
Share Capital-Preference
2.
Land
Share Capital-Ordinary
Paid-in Capital in Excess of Par - Common Stock
Organization Expense
Share Premium-Ordinary
Equity Investments
Retained Earnings Appropriated for Plant Expansion
Legal Fees Expense
Unrealized Holding Gain or Loss - Income
Debt Investments
Common Stock
Common Stock Dividend Distributable
Dividends Payable - Common
Equipment
Property Dividends Payable
Share Premium-Conversion Equity
Cash
Preferred Stock
Bonds Payable
Treasury Stock
Share Capital-Preference
Dividends Payable - Preferred
No Entry
Unamortized Bond Issue Costs
Paid-in Capital in Excess of Stated Value - Common Stock
Income Summary
Buildings
Retained Earnings
Discount on Bonds Payable
Paid-in Capital in Excess of Par - Preferred Stock
Paid-in Capital from Treasury Stock
Equity Investments
Retained Earnings Appropriated for Plant Expansion
No Entry
Preferred Stock
Paid-in Capital from Treasury Stock
Common Stock
Legal Fees Expense
Retained Earnings
Share Premium-Conversion Equity
Land
Share Premium-Ordinary
Dividends Payable - Common
Paid-in Capital in Excess of Par - Common Stock
Share Capital-Ordinary
Organization Expense
Discount on Bonds Payable
Equipment
Unamortized Bond Issue Costs
Share Capital-Preference
Unrealized Holding Gain or Loss - Income
Paid-in Capital in Excess of Par - Preferred Stock
Cash
Common Stock Dividend Distributable
Dividends Payable - Preferred
Income Summary
Property Dividends Payable
Buildings
Paid-in Capital in Excess of Stated Value - Common Stock
Debt Investments
Bonds Payable
Treasury Stock
Discount on Bonds Payable
Bonds Payable
Common Stock Dividend Distributable
Paid-in Capital in Excess of Par - Preferred Stock
Dividends Payable - Common
Share Premium-Conversion Equity
Buildings
Property Dividends Payable
Treasury Stock
Organization Expense
Retained Earnings Appropriated for Plant Expansion
Share Premium-Ordinary
Equipment
Legal Fees Expense
Unamortized Bond Issue Costs
Land
Paid-in Capital from Treasury Stock
Retained Earnings
Equity Investments
Dividends Payable - Preferred
Paid-in Capital in Excess of Stated Value - Common Stock
Debt Investments
Income Summary
Share Capital-Preference
Preferred Stock
Unrealized Holding Gain or Loss - Income
No Entry
Cash
Common Stock
Paid-in Capital in Excess of Par - Common Stock
Share Capital-Ordinary
3.
Dividends Payable - Common
Equity Investments
Property Dividends Payable
Retained Earnings Appropriated for Plant Expansion
Share Premium-Conversion Equity
Debt Investments
Bonds Payable
Unamortized Bond Issue Costs
Paid-in Capital in Excess of Par - Preferred Stock
Buildings
Discount on Bonds Payable
Share Capital-Ordinary
Share Premium-Ordinary
Land
Unrealized Holding Gain or Loss - Income
Paid-in Capital in Excess of Par - Common Stock
Cash
Organization Expense
No Entry
Common Stock
Preferred Stock
Equipment
Retained Earnings
Income Summary
Treasury Stock
Dividends Payable - Preferred
Paid-in Capital from Treasury Stock
Common Stock Dividend Distributable
Paid-in Capital in Excess of Stated Value - Common Stock
Legal Fees Expense
Share Capital-Preference
Dividends Payable - Preferred
Debt Investments
Paid-in Capital in Excess of Stated Value - Common Stock
Dividends Payable - Common
Unamortized Bond Issue Costs
Share Capital-Preference
Preferred Stock
Land
Property Dividends Payable
Retained Earnings
Cash
Unrealized Holding Gain or Loss - Income
Equity Investments
No Entry
Retained Earnings Appropriated for Plant Expansion
Income Summary
Discount on Bonds Payable
Organization Expense
Paid-in Capital in Excess of Par - Common Stock
Legal Fees Expense
Bonds Payable
Paid-in Capital in Excess of Par - Preferred Stock
Equipment
Share Premium-Conversion Equity
Share Capital-Ordinary
Paid-in Capital from Treasury Stock
Buildings
Treasury Stock
Common Stock Dividend Distributable
Common Stock
Share Premium-Ordinary
(To record the closing entries.)
Bonds Payable
Share Capital-Preference
Organization Expense
Retained Earnings
Dividends Payable - Preferred
Share Premium-Conversion Equity
Land
Paid-in Capital in Excess of Stated Value - Common Stock
Paid-in Capital from Treasury Stock
Income Summary
Share Capital-Ordinary
Legal Fees Expense
Paid-in Capital in Excess of Par - Preferred Stock
Retained Earnings Appropriated for Plant Expansion
Cash
No Entry
Treasury Stock
Common Stock Dividend Distributable
Unamortized Bond Issue Costs
Share Premium-Ordinary
Paid-in Capital in Excess of Par - Common Stock
Discount on Bonds Payable
Unrealized Holding Gain or Loss - Income
Dividends Payable - Common
Equity Investments
Common Stock
Buildings
Equipment
Preferred Stock
Debt Investments
Property Dividends Payable
Retained Earnings
Equity Investments
Share Capital-Preference
Share Premium-Ordinary
Paid-in Capital in Excess of Stated Value - Common Stock
Cash
Retained Earnings Appropriated for Plant Expansion
Dividends Payable - Common
Common Stock
No Entry
Bonds Payable
Equipment
Dividends Payable - Preferred
Paid-in Capital in Excess of Par - Preferred Stock
Organization Expense
Buildings
Paid-in Capital in Excess of Par - Common Stock
Unamortized Bond Issue Costs
Share Capital-Ordinary
Unrealized Holding Gain or Loss - Income
Discount on Bonds Payable
Property Dividends Payable
Income Summary
Debt Investments
Common Stock Dividend Distributable
Paid-in Capital from Treasury Stock
Land
Legal Fees Expense
Preferred Stock
Treasury Stock
Share Premium-Conversion Equity
(To record appropriated retained earnings.)
Attempts: 1 of 1 used
(b)
Construct the stockholders' equity section incorporating all the above information.
PHAROAHCORPORATION
Balance Sheet (Partial)
Expert Answer:
