Problem The Brendan Corporation is authorized to sue 50.000 shares of preferred stock and 300.000 sex or common sock As of November 30, 2022, Brendan Corporation has the following stockholders' equity accounts and balances TO Preferred Stock, S100 par value S 1.000.000 Paid-in-Capital in Excess of Par-Preferred Stock 100,000 Common Stock, Sio par value 1,000,000 Paid-in-Capital in Excess of Par - Common Stock 2.000.000 Retained Earnings 1.800.000 The following transactions ocurred during the month of December Dee Declared a cash dividend for the preferred stockholders to be paid on December 12, Dec 15 Declared a 10% stock dividend for common stockholders to be distributed on December 17. The fir market value of the common stock on this date is $30. Dec 12 Paid the preferred stock dividend declared on December 1. Dec 17 Distributed the common stock dividend declared on December 5 Dec 18 Declared a cash dividend for common stockholders of s2 per share to be paid December 28 Dec 20 Declared a 2 for 1 stock split. Dec 21 Determined an error was made on the prior year income statement by overstating depreciation expense for $20,000 (Use Accumulated Depreciation in the journal entry.) Dec 28 Paid the common stock dividend declared on December 18, Dec 29 Declared a 5% stock dividend for common stockholders to be distributed on January 30. The fair market value common stock on this date is $20. Dec 30 Purchased 1,000 shares of treasury stock for 58 per share Dec 31 Net income for the year totaled $450,000. Dec 31 Close the dividend accounts. INSTRUCTIONS a. Record the journal entries to record the December transactions. b. Prepare the Retained Earnings Statement c. Prepare the Stockholders' Equity section of the Balance Sheet. Problem 4 The Brendan Corporation is authorized to issue 50.000 shares or preferred stock and 300,000 shares of common stock As of November 30, 2022. Brendan Corporation has the following stockholders' equity accounts and balances 10% Preferred Stock, S100 par value Paid-in-Capital in Excess of Par Preferred Stock S 1,000,000 100,000 Common Stock, SIO par value 1.000.000 Pald-in-Capital in Excess of Par. Common Stock 2,000,000 Wetained Enmings 1.800.000 The for transactions ocurred during the month of December: Dec 1 Declared a cash dividend for the preferred stockholders to be paid on December 12 Dec 5 Declared a 10% stock dividend for common stockholders to be distributed on December 17. The air market value of the common stock on this date is $30 Dec 12 Paid the preferred stock dividend declared on December 1 Dec 17 Distributed the common stock dividend declared on December 5. Dee 18 Declared a cash dividend for common stockholders of $2 per share to be paid December 28 Dec 20 Declared 2 for I stock split Dec 21 Determined an error was made on the prior year income statement by overstating depreciation expense for $20,000 (Use Accumulated Depreciation in the journal entry) Dec 28 Paid the common stock dividend declared on December 18 Dec 29 Declared a 5% stock dividend for common stockholders to be distributed on January 30. The fair market value o common stock on this date is $20. Dec 30 Purchased 1,000 shares of treasury stock for S8 per share. Dec 31 Net income for the year totaled $450,000. Dec 31 Close the dividend accounts. INSTRUCTIONS: a. Record the journal entries to record the December transactions b. Prepare the Retained Earnings Statement c. Prepare the Stockholders' Equity section of the Balance Sheet
