Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

prepare journal entries with correct dates The Stockholder's equity section of Perry Inc. as of December 31, 2019, listed the following: 0 Preferred Stock 6%

image text in transcribed
prepare journal entries with correct dates
The Stockholder's equity section of Perry Inc. as of December 31, 2019, listed the following: 0 Preferred Stock 6% 100,000, $s par $ 500,000 1 Common Stock 400,000 shares at $1. Par $ 400,000 12 Paid in Capital in Excess of Par, Preferred Stock 600,000 13 Paid in Capital in Excess of Par, Common Stock $ 2,000,000 14 Retained Earning $ 8,000,000 15 Treasury Stock (5,000 Shares) $ (35,000) 16 Total Stockholder's Equity $ 11,465,000 17 18 Usted below are 2020 transactions effecting the stockholder's equity of Perry, Inc 19 1. March 3, a 5 for 4 common stock split was declared the split was affected in the form of stock dividend when the per share market value was $8 20 2. June 1, a property dividend of 200,000 shares was distributed to common stockholders. The book value of the shares was $600,000 but had fair value $650,000 21 3. June 15, 1,000 shares of treasury stock were sold at $8 per share 22 4. July 5, a 2% stock dividend was issued to common shareholders. The market value was $9 per share. 23 5. December 1, a 6% dividend was paid to preferred stockholders 24 6. December 1, a cash dividend of $0.75 was declared on common shareholders of record on December 15 and paid December 31 26 Required: 27 Prepare Journal entrids with correct date

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Philosophy And Technique

Authors: John William Cook

1st Edition

039520660X, 978-0395206607

More Books

Students also viewed these Accounting questions