Question
The post-closing trial balance of Cullumber Corporation at December 31, 2022, contains the following stockholders equity accounts. Preferred Stock (14,800 shares issued) $740,000 Common Stock
The post-closing trial balance of Cullumber Corporation at December 31, 2022, contains the following stockholders equity accounts.
Preferred Stock (14,800 shares issued) | $740,000 | |
Common Stock (254,000 shares issued) | 3,810,000 | |
Paid-in Capital in Excess of ParPreferred Stock | 254,000 | |
Paid-in Capital in Excess of ParCommon Stock | 398,000 | |
Common Stock Dividends Distributable | 381,000 | |
Retained Earnings | 851,590 |
A review of the accounting records reveals the following.
1. | No errors have been made in recording 2022 transactions or in preparing the closing entry for net income. | |
2. | Preferred stock is $50 par, 6%, and cumulative; 14,800 shares have been outstanding since January 1, 2021. | |
3. | Authorized stock is 19,800 shares of preferred, 508,000 shares of common with a $15 par value. | |
4. | The January 1 balance in Retained Earnings was $1,160,000. | |
5. | On July 1, 18,600 shares of common stock were issued for cash at $18 per share. | |
6. | On September 1, the company discovered an understatement error of $90,300 in computing salaries and wages expense in 2021. The net of tax effect of $63,210 was properly debited directly to Retained Earnings. | |
7. | A cash dividend of $381,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021. | |
8. | On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $18. | |
9. | Net income for the year was $593,000. | |
10. | On December 31, 2022, the directors authorized disclosure of a $192,000 restriction of retained earnings for plant expansion. (Use Note X.) |
(a)
Partially correct answer icon
Your answer is partially correct.
Reproduce the Retained Earnings account for 2022. (List items in order presented in the problem.)
Retained Earnings | |||
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choose a transaction date Jan. 1 BalanceSept. 1 Prior Per. Adj.Dec. 31 Cash DividendsDec. 31 Stock DividendsDec. 31 Net IncomeDec. 31 Balance | enter a debit amount | choose a transaction date Jan. 1 BalanceSept. 1 Prior Per. Adj.Dec. 31 Cash DividendsDec. 31 Stock DividendsDec. 31 Net IncomeDec. 31 Balance | enter a credit amount |
choose a transaction date Jan. 1 BalanceSept. 1 Prior Per. Adj.Dec. 31 Cash DividendsDec. 31 Stock DividendsDec. 31 Net IncomeDec. 31 Balance | enter a debit amount | choose a transaction date Jan. 1 BalanceSept. 1 Prior Per. Adj.Dec. 31 Cash DividendsDec. 31 Stock DividendsDec. 31 Net IncomeDec. 31 Balance | enter a credit amount |
choose a transaction date Jan. 1 BalanceSept. 1 Prior Per. Adj.Dec. 31 Cash DividendsDec. 31 Stock DividendsDec. 31 Net IncomeDec. 31 Balance | enter a debit amount | choose a transaction date Jan. 1 BalanceSept. 1 Prior Per. Adj.Dec. 31 Cash DividendsDec. 31 Stock DividendsDec. 31 Net IncomeDec. 31 Balance | enter a credit amount |
choose the end date of the accounting period Jan. 1 BalanceSept. 1 Prior Per. Adj.Dec. 31 Cash DividendsDec. 31 Stock DividendsDec. 31 Net IncomeDec. 31 Balance | enter a debit balance | choose the end date of the accounting period Jan. 1 BalanceSept. 1 Prior Per. Adj.Dec. 31 Cash DividendsDec. 31 Stock DividendsDec. 31 Net IncomeDec. 31 Balance | enter a credit balance |
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