Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The equity sections from Sacramento Group's 2016 and 2017 year-end balance sheets follow. Stockholders' Equity (December 31, 2016) Common stock-$12 par value, 140,000 shares authorized,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The equity sections from Sacramento Group's 2016 and 2017 year-end balance sheets follow. Stockholders' Equity (December 31, 2016) Common stock-$12 par value, 140,000 shares authorized, 60,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 720,000 108,000 590,000 $1,418,000 Stockholders' Equity (December 31, 2017) Common stock-$12 par value, 140,000 shares authorized, 66,720 shares issued, 4,000 shares in treasury $ 800,640 Paid-in capital in excess of par value, common stock 202,080 Retained earnings ($96,000 restricted by treasury stock) 1,060,000 2,062, 720 Less cost of treasury stock (96,000) Total stockholders equity $1,966, 720 The following transactions and events affected its equity during year 2017. Jan. 5 Declared a $1.20 per share cash dividend, payable on January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $1.20 per share cash dividend, payable on April 10. Declared a $1.20 per share cash dividend, payable on July 10. July 31 Declared a 12. stock dividend when the stock market value was $26 per share. Aug 14 Issued the stock dividend that was declared on July 31. Oct. Declared a $1.20 per share cash dividend, date of record October 10. Requirement General Journal General Ledger Tral Balance Cash Dividends Stock Dividend The following transactions and events affected its equity during 2017. Prepare the journal entry necessary to record each ever and then agree the year-end balances with the December 31, 2017 Stockholders' Equity statement given above Aug. 14 Issued the stock dividend that was declared on July 31. Oct. 5 Declared a $1.20 per share cash dividend, date of record October 10. Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend Note: The ending equity balances should agree with the December 31, 2017 Statement of Stockholders' Equity Dates: Jan 01 to: Dec 31 General Ledger Account Debit Credit Common dividend payable Debit Credit No. Balance Date Dec 31 Jan 10 Mar 20 884.000 96,000 Balance 2,344,384 1.480,384 1,384,384 Date Jan 01 Jan 05 Jan 10 1 864,000 864,000 1 864,000 Common stock Debit Credit Date Balance 720,000 Pald-in capital, Common Debit Credit Credit Date Balance Jan 01 106,000 Retained earnings Debit Credit Date Treasury stock, Common Debit Credit No. Date Balance Jan 01 Jan 05 Balance 590.000 (274.000) 864.000 3 Mar 201 96,000 96.000 Income summary Debit Credit Date Balance (926,384) 1 of 8 Next > $1,966, 720 The following transactions and events affected its equity during year 2017. Jan. 5 Declared a $1.20 per share cash dividend, payable on January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $1.20 per share cash dividend, payable on April 10 July 5 Declared a $1.20 per share cash dividend, payable on July 10. July 31 Declared a 120 stock dividend when the stock's market value was $26 per share. Aug. 14 Issued the stock dividend that was declared on July 31. Oct. 5 Declared a $1.20 per share cash dividend, date of record October 10. Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend Sacramento Group Trial Balance December 31, 2017 Account Title Credit Debit 1,384,384 720,000 108,00 Common stock Pald-in capital, Common Retained earnings Treasury stock, Common Income summary 274,000 96,000 926,384 1.754 384 Total S 1,754,384 S Prey 1 of 8 !!! Next > The following transactions and events affected its equity during year 2017, Jan. Declared $1.20 per Whare cash dividend, payable on January 10. Mar. 20 Purchased treasury stock for canh. Apr. 5 Declared $1.20 per share cash dividend, payable on April 10. July Declared a $1.20 per share cash dividend, payable on July 10. July 31 Declared a 120 stock dividend when the stock market value was $26 per share. Aug. 14 Yamund the wtock dividend that was declared on July 31. Oct. 5 Declared $1.20 per share cash dividend, date of record October 10. Requirement General Journal General Ledger Trial Balance Cash Dividends Stock Dividend Calculate the dollar amount of each cash dividend. Dates: Jan 01 to: Dec 31 July 05 October 05 Calculation of Cash Dividends January 05 April 05 How many common shares are outstanding? Dividend per share Total cash dividend Prey 1 of 8 !!! Next > IT PA

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_2

Step: 3

blur-text-image_3

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

Advanced Management Accounting

Authors: Maurice L. Hirsch Jnr.

2nd Edition

1861526768, 978-1861526762

More Books

Students also viewed these Accounting questions