Prir Problem 14-02A a-c The post-closing trial balance of Blossom Corporation at December 31, 2020, contains the following stockholders et courts Preferred Stock (14,000 shares issued) Common Stock (240,000 shares issued) Paid-in Capital in Excess of Par--Preferred Stock Paid-in Capital in Excess of Par-Common Stock Common Stock Dividends Distributable Retained Earnings $700,000 2,400,000 240,000 380,000 240,000 966,500 A review of the accounting records reveals the following. 1. No errors have been made in recording 2020 transactions or in preparing the closing entry for net income 2. Preferred stock is $50 par, 6%, and cumulative; 14,000 shares have been outstanding since January 1, 2019 3. Authorized stock is 19,000 shares of preferred, 480,000 shares of common with a $10 par value. 4. The January 1 balance in Retained Earnings was $1,100,000. 5. On July 1, 18,000 shares of common stock were issued for cash at $16 per share. On September 1, the company discovered an understatement error of $85,000 in computing sales and wager expenses 2013. The met to Retained Earnings. 6. 7. 8. A cash dividend of $240,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were more On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per 17 Net income for the year was $550,000. tors authorized disclosure of a $190,000 restriction of retained earnings for plantegenwon. (Uwe MX) Prir Problem 14-02A a-c The post-closing trial balance of Blossom Corporation at December 31, 2020, contains the following stockholders et courts Preferred Stock (14,000 shares issued) Common Stock (240,000 shares issued) Paid-in Capital in Excess of Par--Preferred Stock Paid-in Capital in Excess of Par-Common Stock Common Stock Dividends Distributable Retained Earnings $700,000 2,400,000 240,000 380,000 240,000 966,500 A review of the accounting records reveals the following. 1. No errors have been made in recording 2020 transactions or in preparing the closing entry for net income 2. Preferred stock is $50 par, 6%, and cumulative; 14,000 shares have been outstanding since January 1, 2019 3. Authorized stock is 19,000 shares of preferred, 480,000 shares of common with a $10 par value. 4. The January 1 balance in Retained Earnings was $1,100,000. 5. On July 1, 18,000 shares of common stock were issued for cash at $16 per share. On September 1, the company discovered an understatement error of $85,000 in computing sales and wager expenses 2013. The met to Retained Earnings. 6. 7. 8. A cash dividend of $240,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were more On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per 17 Net income for the year was $550,000. tors authorized disclosure of a $190,000 restriction of retained earnings for plantegenwon. (Uwe MX)
