The post-closing trial balance of Cullumber Corporation at December 31, 2022, contains the following stockholders' equity...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The post-closing trial balance of Cullumber Corporation at December 31, 2022, contains the following stockholders' equity accounts. Preferred Stock (14,000 shares issued) Common Stock (243,000 shares issued) $700,000 3,645,000 Paid-in Capital in Excess of Par-Preferred Stock 243,000 Paid-in Capital in Excess of Par-Common Stock 397,000 Common Stock Dividends Distributable 364,500 Retained Earnings 956,660 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. 3. Preferred stock is $50 par, 6%, and cumulative; 14,000 shares have been outstanding since January 1, 2021. Authorized stock is 19,000 shares of preferred, 486,000 shares of common with a $15 par value. 4. The January 1 balance in Retained Earnings was $1,200,000. 5. On July 1, 18,700 shares of common stock were issued for cash at $16 per share. 6. 7. 8. On September 1, the company discovered an understatement error of $87,200 in computing salaries and wages expense in 2021. The net of tax effect of $61,040 was properly debited directly to Retained Earnings. A cash dividend of $364,500 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021. 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. 9. Net income for the year was $571,000. 10. On December 31, 2022, the directors authorized disclosure of a $190,000 restriction of retained earnings for plant expansion. (Use Note X.) (a) Reproduce the Retained Earnings account for 2022. (List items in order presented in the problem.) Retained Earnings eTextbook and Media Jan. 1 Balance 1200000 Dec. 31 Net Income 571000 Dec. 31 Balance Assistance Used The post-closing trial balance of Cullumber Corporation at December 31, 2022, contains the following stockholders' equity accounts. Preferred Stock (14,000 shares issued) Common Stock (243,000 shares issued) $700,000 3,645,000 Paid-in Capital in Excess of Par-Preferred Stock 243,000 Paid-in Capital in Excess of Par-Common Stock 397,000 Common Stock Dividends Distributable 364,500 Retained Earnings 956,660 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. 3. Preferred stock is $50 par, 6%, and cumulative; 14,000 shares have been outstanding since January 1, 2021. Authorized stock is 19,000 shares of preferred, 486,000 shares of common with a $15 par value. 4. The January 1 balance in Retained Earnings was $1,200,000. 5. On July 1, 18,700 shares of common stock were issued for cash at $16 per share. 6. 7. 8. On September 1, the company discovered an understatement error of $87,200 in computing salaries and wages expense in 2021. The net of tax effect of $61,040 was properly debited directly to Retained Earnings. A cash dividend of $364,500 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021. 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. 9. Net income for the year was $571,000. 10. On December 31, 2022, the directors authorized disclosure of a $190,000 restriction of retained earnings for plant expansion. (Use Note X.) (a) Reproduce the Retained Earnings account for 2022. (List items in order presented in the problem.) Retained Earnings eTextbook and Media Jan. 1 Balance 1200000 Dec. 31 Net Income 571000 Dec. 31 Balance Assistance Used
Expert Answer:
Related Book For
Accounting Principles
ISBN: 9781119707110
14th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
Posted Date:
Students also viewed these accounting questions
-
1. Write the regular expression for the regular language L over alphabet = {0, 1} consisting of strings which contain exactly three 1's or exactly four 1's. 2. Write a regular expression that will...
-
Consider a project with free cash flows in one year of $144, 219 or $175,241, with each outcome being equally likely. The initial investment required for the project is $93,307, and theproject's cost...
-
The object provides methods for the creation of Statement objects that will be used to execute Oracle statements in the next step. a. Statement b. Connection c. DriverManager d. Driver
-
The Framingham Heart Study recorded the cholesterol levels of more than 1400 men. Here is an ogive of the distribution of these cholesterol measures. (An ogive shows the percentage of cases at or...
-
Aunt Ethel's Fancy Cookie Company manufactures and sells three flavors of cookies: macaroon, sugar, and butter cream. The batch size for the cookies is limited to 1,000 cookies based on the size of...
-
Why are adjusting entries needed? LO5
-
Chocolate Bars, Inc. (CBI), manufactures creamy deluxe chocolate candy bars. The firm has developed three distinct products: Almond Dream, Krispy Krackle, and Creamy Crunch. CBI is profitable, but...
-
JOURNALIZE THE ENTRYS Waterways has two major public - park projects to provide with comprehensive irrigation in one of its service locations this month. Job J 5 7 and Job K 5 2 involve 1 5 acres of...
-
A storeroom is used to organize items stored in it on N shelves. Shelves are numbered from 0 to N-1. The K-th shelf is dedicated to items of only one type, denoted by a positive integer A[K]....
-
4. Group opinion. Does your group think it would be a good idea for Gotta Go Freight to expand into India or does your group think the expansion is risky? Explain your answer
-
Topic: Field Visits Engineers look to build from previous experiences and technologies to solve current problems. To help refine their solutions, engineers often visit locations using similar...
-
An experiment was conducted to measure the effectiveness of various feed supplements on the growth rate of chickens. A five number summary of the weights of the chicks in grams six weeks after...
-
Explain most common type of crime which is an assault and your perceptions of the sources of crime problems in community. Major challenge that police in your community faced and for those challenges...
-
Discuss the Cyber Security standards an Emergency Manager should follow and why.
-
4. Using the substitution = 2 arctant, it is possible to transform any rational function of trig functions into a rational function of t, and hence use partial fractions. In this problem, you will...
-
El proyecto es aceptado dea.) Si el ndice de rentabilidad es mayor a unob.) el ndice de rentabilidad es menor que unoc.) Los fondos son ilimitadosd.) Si el ndice de rentabilidad es igual a u 1 answer
-
The manager for retail customers, Katie White, wants to hear your opinion regarding one business offer she has received from an entrepreneur who is starting a mobile phone app called Easy Money. The...
-
Two items are omitted from each of the following summaries of balance sheet and income statement data for two corporations for the year 2006, Craig Corporation and Holly Enterprises. Instructions...
-
The following information relates to Karin Weigel Co. for the year 2006. Instructions After analyzing the data, prepare an income statement and a retained earnings statement for the year ending...
-
Griswold Inc.. a public camping ground near the Boundary Waters Canoe Area, has compiled the following financial information as of December 31. 2006. Instructions (a) Determine Griswold's net income...
Study smarter with the SolutionInn App