Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The post-closing trial balance of Ivanhoe Corporation at December 31, 2020, contains the stockholders' equity accounts. poration at December 31, 2020, contains the following Preferred

image text in transcribed
image text in transcribed
The post-closing trial balance of Ivanhoe Corporation at December 31, 2020, contains the stockholders' equity accounts. poration at December 31, 2020, contains the following Preferred Stock (15,000 shares issued) Common Stock (243,000 shares issued) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Common Stock Dividends Distributable Retained Earnings $750,000 2,430,000 243,000 409,000 243,000 982,560 A review of the accounting records reveals the following. No errors have been made in recording 2020 transactions r in preparing the closing entry for net income. Preferred stock is $50 par, 6%, and cumulative: 15.000 shares have been outstanding since January 1, 2019. Authorized stock is 20,000 shares of preferred, 486,000 shares of common with a $10 par value. The January 1 balance in Retained Earnings was $1,150,000. On July 1, 18,800 shares of common stock were issued for cash at $18 per share. On September 1, the company discovered an understatement error of $87,200 in computing salaries and wages expense in 2019. The net of tax effect of $61,040 was properly debited directly to Retained Earnings. A cash dividend of $243,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2019. 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. Net income for the year was $574,000. On December 31, 2020, the directors authorized disclosure of a $204,000 restriction of retained earnings for plant expansion. (Use Note X.) 8. 9. 10. Reproduce the Retained Earnings account for 2020. (List items in order presented in the problem.) Retained Earnings SeptFlor 21.010 Jan I Bal 1,150,000 Ocivicesta 243,000 Def 31 Nel. 574,000 Decej Stock 109,00 Dec 31 Bal 982560 CO 243,600 X 100 X18= Prepare a stockholders' equity section at December 31, 2020. (Enter account name only and do IVANHOE CORPORATION. Partial Balance Sheet Dec. 31.2000 Stockholder's Equity Paid in capital a Capital Stock a 4% Preferred stock.... $750,000 common Stock. $2.430,000 Common Stock Dividends 843,000 Distributable Total Capital Stod Add. pd.in capital In excess of per value [" common stock Total add. po-in cap. Total pol-in cap. Retained earnings Total Stockholders equity Compute the allocation of the cash dividend to preferred and common stock. Allocation of the cash dividend to preferred stock = 15,00 x 50 = 486.000x ID Allocation of the cash dividend to common stock Eeed

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

Comparative international accounting

Authors: Christopher nobes, Robert parker

9th Edition

273703579, 978-0273703570

More Books

Students also viewed these Accounting questions