Question 7 The stockholders' equity accounts of Bramble Corp. on January 1, 2022, were as follows. Preferred Stock (7%, $100 par noncumulative, 14,000 shares authorized) Common Stock ($4 stated value, 840,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (14,000 common shares) $840,000 2,800,000 42,000 1,344,000 1,926,400 112,000 During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity. 1 Feb. Mar. 20 Oct. Nov. 1 Dec. Dec. 31 Issued 14,000 shares of common stock for $84,000. Purchased 2,800 additional shares of common treasury stock at $7 per share. Declared a 7% cash dividend on preferred stock, payable November 1. Paid the dividend declared on October 1. Declared a $0.50 per share dividend to common stockholders of record on December 15, payable December 31, 2022. Determined that net income for the year was $785,000. Paid the dividend declared on December 1. 1 Question 7 Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal places, e.g. 5,275.) Date Account Titles and Explanation Credit Debit 84,000 Feb. 1 Cash Common Stack 56,000 Paid-in Capital in Excess af Stated Value-Commor 28,000 Mar. 20 Treasury Stock 19,600 Cash 19,600 Oct 1 Cash Dividends 58,800 Dividends Payable 58,800 Nov.1 Dividends Payable 58,800 Cash 58,800 Dec. 1 Cash Dividends 348,600 Dividends Payable 348,600 Dec. 31 Income Summary 785,000 785,000 Retained Earnings (To record net income) Dec. 31 Retained Earnings 407,400 407,400 Cash Dividends (To close cash dividends) Dec. 31 V Dividends Payable 348,600 Cash 34,600 (To record payment of cash dividends payable) Preferred Stock 840,000 240,000 12/31 Bal, Common Stock 1/1 Bal. 2.800.000 2/1 56,000 12/31 Bal, 2,856,000 Paid-in Capital in Excess of Par Value-Preferred Stock 1/1 Bal. 42,000 12/31 Bal, v 42,000 Paid-in Capital in Excess of Stated Value Common Stock 1/1 Bal, 1,344,000 2/1 28,000 V 1,372,000 12/31 Bal, Retained Earnings 407,400 1/1 Bal. 12/31 1,926,400 12/31 785,000 12/31 Bal. 2,304,000 Cash Dividends 10/1 56,800 12/31 407,400 12/1 346,600 12/31 Bal. D Treasury Stock 1/1 Bal. 112,000 3/20 19,600 12/31 Bal. 131,600 (c) Prepare the stockholders' equity section of the balance sheet at December 31, 2022 BRAMBLE CORP. Partlal Balance Sheet December 31, 2022 Total Stockholders' Equity Paid-in Capital Capital Stock V Preferred Stock Common Stock Total Capital Stock Additional Paid-in Capital Pald-in Capital in Excess of Par Value-Preferred Stoc! Paid-in Capital in Excess of Par Value-Common Stock Additional Paid-in Capital Total Pald-in Capital Retained Earnings
