Problem 1402A - (Part Level Submission) The post-dosing trial balance of Blossom Corporation at December 31, 2020, contains the following stockholders' equity accounts Preferred Stock (14,000 shares issued) $700,000 Common Stock (240,000 shares issued) 2,400,000 Paid in Capital in Excess of Per-Preferred Stock 240,000 Paid-in Capital in Excess of Par-Common Stock 380,000 Common Stock Dividends Distributable 240,000 Retained Earnings 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. 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. 6. On September 1, the company discovered an understatement error of $85,000 in computing salaries and wages expense in 2019. The net of tax effect of $59,500 was properly debited directly to Retained Earnings 7 A cash dividend of $240,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2019. On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16. Net income for the year was $550,000 10, On December 31, 2020, the directors authorized disclosure of a $190,000 restriction of retained earnings for plant expansion. (Use Note X.) (a) Your answer is partially correct. Try again. Reproduce the Retained Earnings account for 2020. (List items in order presented in the problem.) Retained Earnings Sept. 1 Prior Per. Adj. Jan. 1 Balance Dec. 31 Cash Dividends Dec. 31 Net Income Dec. 31 Stock Dividends Dec. 31 Balance The post-dosing trial balance of Blossom Corporation at December 31, 2020, contains the following stockholders' equity accounts. Preferred Stock (14,000 shares issued) $700,000 Common Stock (240,000 shares issued) 2,400,000 Paid-in Capital in Excess of Par-Preferred Stock 240,000 Paid-in Capital in Excess of Par-Common Stock 380,000 Common Stock Dividends Distributable 240,000 Retained Earnings 966,500 1. A review of the accounting records reveals the following 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 Authorized stock is 19,000 shares of preferred, 480,000 shares of common with a $10 par value. 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 salaries and wages expense in 2019. The net of tax effect of $59,500 was properly debited directly to Retained Earnings. 7 A cash dividend of $240,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2019. On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16. Net income for the year was $550,000. 10. On December 31, 2020, the directors authorized disclosure of a $190,000 restriction of retained earnings for plant expansion. (Use Note X.) 6 Q IUI PROHL Expasion. (a) Your answer is partially correct. Try again. Reproduce the Retained Earnings account for 2020. (List items in order presented in the problem.) Retained Earnings Sept. 1 Prior Per. Adj. Jan. 1 Balance
