Premierline, Inc. reported the following shareholders' equity section as of the beginning of the current year 1(Click the icon to view the data.) During the current year, Premierline engaged in the following transactions affecting the stockholders' equity section of its current balance sheet. 2(Click the icon to view the transactions.) 12. Read the requirements3. Requirement a. Prepare all journal entries required to record the transactions. (Record debits first, then credits. Exclude explanations from any journal entries.) 1. Issued 600,000 shares of its $1 par value common stock at $34 per share. The underwriter charged a 3% fee for issuing the shares. The stock issue costs are not capitalized. Current Year Account 1) 2) (3 4) 2. Issued 550,000 shares of $6 par value 12% preferred stock (2,400,000 authorized) at $44 per share. These shares were privately placed and Premierline did not pay stock issue costs. Current Year Account (5) (6) (7 (8) 3. Purchased 260,000 shares of common stock at $38 per share. Current Year Account (9) (10) (11) (12) (The declarations should be recorded separately for the 4a, Declared a $468,000 dividend for the first half of the year common and the preferred shares.) Begin by preparing the entry to record the declaration of the dividend on preferred shares. Current Year Account (13) (14) (15) (16) E 4b. Declared $468,000 dividend for the first half of the year. (The declarations should be recorded separately for the common and the preferred shares.) Now prepare the entry to record the declaration of the dividend on common shares. Account Current Year (17) (18) (19) (20) 5. Sold 109,000 of the treasury shares at $54 per share. (The 83,000 treasury shares on hand at the beginning of the year are considered sold first. The company paid $24 per share for these shares of treasury stock). Account Current Year (21) (22) (23) (24) 6. Paid the cash dividends. (Prepare a compound entry to record payment of the preferred and common stock dividends.) Account Current Year (25) (26) (27) (28) 7. Reported net income of $2,980,300 for the current year. Account Current Year (29) (30) (31) (32) addition to the net income, Premierline incurred an $840,000 unrealized losss on an available-for-sale investment Account Current Year (33) |(34) (35) (36) 9. Declared a $468,000 cash dividend for the second half of the year. common and the preferred shares.) (The declarations should be recorded separately for the 9a. Begin by preparing the entry to record the declaration of the dividend on preferred shares. Current Year Account (37) (38) (39) (40) 9b. Next prepare the entry to record the declaration of the dividend on common shares. Current Year Account (41) (42) (43) (44) 10. Closed out all dividend and other comprehensive income accounts. (Prepare a compound entry.) t Year C Account (45) (46) (47) (48) (49) Requirement b. Construct the shareholders' equity section for the year-end balance sheet as well as the relevant t-accounts. Begin by posting to the relevant shareholders' equity section t-accounts. For accounts that have beginning balances, enter those amounts on the first line and label with Beg. Bal. If an account does not have a beginning balance, leave the cell blank; do not enter a label or a "0". Use the transaction numbers provided before each journal entry as posting references to post each transaction to the relevant accounts, then compute the ending balance of each account. Label the ending balances with End. Bal. (For accounts with a $0 balance, select "End. Bal." and enter "0" on the normal balance side of the t-account. Abbreviations used: APIC Additional paid-in capital.) Review the journal entries that you prepared in Requirement a. APIC in Excess of Par Common Common Stock - Par (53) (52) (51) (50) (57) (55) (56) (54) (61) (60) (59) (58) APIC in Excess of Par Preferred APIC in Excess of Par Treasury Stock (65) (64) (63) (62) (69) (68) (67) (66) Preferred Stock - Par Dividends Preferred (73) (71) (72) (70) (77) (76) (75) (74) (79) (78) Dividends Common Retained Earnings (83) (81) (82) (80) (87) (86) (85) (84) (91) (90) (89) (88) Accumulated Other Comprehensive Income Treasury Stock (95) (94) (93) (92) ( 99) (98) (97 (96) (101) (100) Now construct the shareholders' equity section for the year-end balance sheet, (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet, listing preferred data before common data. Use parentheses or a minus sign for loss amounts and/or numbers to be subtracted.) Review the ending balances of the T-accounts that you prepared in Requirement b. Balance Stockholders' Equity (103) (102) (104) (105) (107) (106) (108) (109) (110) Total Contributed Capital (111) Total (112) (114) (113) Total Stockholders' Equity : Data Table 33 Stockholders' Equity Contributed Capital: Common Stock, $1 par value, 3,900,000 authorized and 930,000 930,000 shares issued, and 821,500 shares outstanding 22,600,000 Additional Paid-in Capital in Excess of Par Common 23,530,000 Total Contributed Capital 9,106,200 $ Retained Earnings 1,052,300 Accumulated Other Comprehensive Income (1,992,000) Less: Treasury Stock (83,000 common shares at cost) $ 31,696,500 Total Stockholders' Equity 2: Transactions 1. Issued 600,000 shares of its $1 par value common stock at $34 per share. The underwriter charged a 3% fee for issuing the shares. The stock issue costs are not capitalized. 2. Issued 550,000 shares of $6 par value 12% preferred stock (2,400,000 authorized) at $44 per share. These shares were privately placed and Premierline did not pay stock issue costs. 3. Purchased 260,000 shares of common stock at $38 per share. (The declarations should be recorded separately for the 4. Declared a $468,000 dividend for the first half of the year. common and the preferred shares.) 5. Sold 109,000 of the treasury shares at $54 per share. (The 83,000 treasury shares on hand at the beginning of the year are considered sold first. The company paid $24 per share for these shares of treasury stock). 6. Paid the cash dividends. 7. Reported net income of $2,980,300 for the current year. 8. In addition to the net income, Premierline incurred an $840,000 unrealized loss on an available-for-sale investment. (The declarations should be recorded separately for 9. Declared a $468,000 cash dividend for the second half of the year. the common and the preferred shares.) 10. Closed out all dividend and other comprehensive income accounts. 3: Requirements Prepare all journal entries required to record the transactions listed. a. Construct the shareholders' equity section for the year-end balance sheet as well as the relevant t-accounts. b. Premierline, Inc. reported the following shareholders' equity section as of the beginning of the current year 1(Click the icon to view the data.) During the current year, Premierline engaged in the following transactions affecting the stockholders' equity section of its current balance sheet. 2(Click the icon to view the transactions.) 12. Read the requirements3. Requirement a. Prepare all journal entries required to record the transactions. (Record debits first, then credits. Exclude explanations from any journal entries.) 1. Issued 600,000 shares of its $1 par value common stock at $34 per share. The underwriter charged a 3% fee for issuing the shares. The stock issue costs are not capitalized. Current Year Account 1) 2) (3 4) 2. Issued 550,000 shares of $6 par value 12% preferred stock (2,400,000 authorized) at $44 per share. These shares were privately placed and Premierline did not pay stock issue costs. Current Year Account (5) (6) (7 (8) 3. Purchased 260,000 shares of common stock at $38 per share. Current Year Account (9) (10) (11) (12) (The declarations should be recorded separately for the 4a, Declared a $468,000 dividend for the first half of the year common and the preferred shares.) Begin by preparing the entry to record the declaration of the dividend on preferred shares. Current Year Account (13) (14) (15) (16) E 4b. Declared $468,000 dividend for the first half of the year. (The declarations should be recorded separately for the common and the preferred shares.) Now prepare the entry to record the declaration of the dividend on common shares. Account Current Year (17) (18) (19) (20) 5. Sold 109,000 of the treasury shares at $54 per share. (The 83,000 treasury shares on hand at the beginning of the year are considered sold first. The company paid $24 per share for these shares of treasury stock). Account Current Year (21) (22) (23) (24) 6. Paid the cash dividends. (Prepare a compound entry to record payment of the preferred and common stock dividends.) Account Current Year (25) (26) (27) (28) 7. Reported net income of $2,980,300 for the current year. Account Current Year (29) (30) (31) (32) addition to the net income, Premierline incurred an $840,000 unrealized losss on an available-for-sale investment Account Current Year (33) |(34) (35) (36) 9. Declared a $468,000 cash dividend for the second half of the year. common and the preferred shares.) (The declarations should be recorded separately for the 9a. Begin by preparing the entry to record the declaration of the dividend on preferred shares. Current Year Account (37) (38) (39) (40) 9b. Next prepare the entry to record the declaration of the dividend on common shares. Current Year Account (41) (42) (43) (44) 10. Closed out all dividend and other comprehensive income accounts. (Prepare a compound entry.) t Year C Account (45) (46) (47) (48) (49) Requirement b. Construct the shareholders' equity section for the year-end balance sheet as well as the relevant t-accounts. Begin by posting to the relevant shareholders' equity section t-accounts. For accounts that have beginning balances, enter those amounts on the first line and label with Beg. Bal. If an account does not have a beginning balance, leave the cell blank; do not enter a label or a "0". Use the transaction numbers provided before each journal entry as posting references to post each transaction to the relevant accounts, then compute the ending balance of each account. Label the ending balances with End. Bal. (For accounts with a $0 balance, select "End. Bal." and enter "0" on the normal balance side of the t-account. Abbreviations used: APIC Additional paid-in capital.) Review the journal entries that you prepared in Requirement a. APIC in Excess of Par Common Common Stock - Par (53) (52) (51) (50) (57) (55) (56) (54) (61) (60) (59) (58) APIC in Excess of Par Preferred APIC in Excess of Par Treasury Stock (65) (64) (63) (62) (69) (68) (67) (66) Preferred Stock - Par Dividends Preferred (73) (71) (72) (70) (77) (76) (75) (74) (79) (78) Dividends Common Retained Earnings (83) (81) (82) (80) (87) (86) (85) (84) (91) (90) (89) (88) Accumulated Other Comprehensive Income Treasury Stock (95) (94) (93) (92) ( 99) (98) (97 (96) (101) (100) Now construct the shareholders' equity section for the year-end balance sheet, (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet, listing preferred data before common data. Use parentheses or a minus sign for loss amounts and/or numbers to be subtracted.) Review the ending balances of the T-accounts that you prepared in Requirement b. Balance Stockholders' Equity (103) (102) (104) (105) (107) (106) (108) (109) (110) Total Contributed Capital (111) Total (112) (114) (113) Total Stockholders' Equity : Data Table 33 Stockholders' Equity Contributed Capital: Common Stock, $1 par value, 3,900,000 authorized and 930,000 930,000 shares issued, and 821,500 shares outstanding 22,600,000 Additional Paid-in Capital in Excess of Par Common 23,530,000 Total Contributed Capital 9,106,200 $ Retained Earnings 1,052,300 Accumulated Other Comprehensive Income (1,992,000) Less: Treasury Stock (83,000 common shares at cost) $ 31,696,500 Total Stockholders' Equity 2: Transactions 1. Issued 600,000 shares of its $1 par value common stock at $34 per share. The underwriter charged a 3% fee for issuing the shares. The stock issue costs are not capitalized. 2. Issued 550,000 shares of $6 par value 12% preferred stock (2,400,000 authorized) at $44 per share. These shares were privately placed and Premierline did not pay stock issue costs. 3. Purchased 260,000 shares of common stock at $38 per share. (The declarations should be recorded separately for the 4. Declared a $468,000 dividend for the first half of the year. common and the preferred shares.) 5. Sold 109,000 of the treasury shares at $54 per share. (The 83,000 treasury shares on hand at the beginning of the year are considered sold first. The company paid $24 per share for these shares of treasury stock). 6. Paid the cash dividends. 7. Reported net income of $2,980,300 for the current year. 8. In addition to the net income, Premierline incurred an $840,000 unrealized loss on an available-for-sale investment. (The declarations should be recorded separately for 9. Declared a $468,000 cash dividend for the second half of the year. the common and the preferred shares.) 10. Closed out all dividend and other comprehensive income accounts. 3: Requirements Prepare all journal entries required to record the transactions listed. a. Construct the shareholders' equity section for the year-end balance sheet as well as the relevant t-accounts. b