Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The stockholders' equity accounts of Blossom Company on January 1, 2022, were as follows. Preferred Stock (9%, $100 par noncumulative, 5,000 shares authorized) $475,000

image text in transcribedimage text in transcribedimage text in transcribed

The stockholders' equity accounts of Blossom Company on January 1, 2022, were as follows. Preferred Stock (9%, $100 par noncumulative, 5,000 shares authorized) $475,000 Common Stock ($10 stated value, 800,000 shares authorized) 1,560,000 Paid-in Capital in Excess of Par Value-Preferred Stock 56,000 Paid-in Capital in Excess of Stated Value-Common Stock 820,000 Retained Earnings 760,000 Treasury Stock (8,300 common shares) 66,400 During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity. Mar 1 Issued 6,700 shares of common stock for $85 per share. June 22 Purchased 1,600 additional shares of common treasury stock at $11 per share. Sept. 1 Oct. 1 Dec. 1 Declared a 9% cash dividend on preferred stock, payable October 1. Paid the dividend declared on September 1. Declared a $0.60 per share cash dividend to common stockholders of record on December 15, payable December 31, 2022 31 Determined that net income for the year was $123,000. Paid the dividend declared on December 1. Journalize the transactions for the dates shown. Include entries to close net income and dividends to Retained Earnings. (Record journal entries in the order presented in the problem. 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.) Date Account Titles and Explanation Mar. 1 Cash Common Stock Paid-in Capital in Excess of Par Value-Common Stock June 22 : Treasury Stock Cash Sept. 1 0 Cash Dividends i Dividends Payable Oct. 1 Dividends Payable Cash Dec. 1 Cash Dividends Debit Credit Dec. 1 Cash Cash Dividends Dividends Payable Dec. 31: Income Summary Dec 31 Retained Earnings (To paid the dividend declared on December 1) Dividends Payable Cash (To close net income) Dec. 31 : Retained Earnings Cash Dividends (To close dividends)

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

Step: 3

blur-text-image

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

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel,  Jerry J. Weygandt,  Jill E. Mitchell

10th Edition

1119791081, 978-1119791089

More Books

Students also viewed these Accounting questions

Question

Can anyone help solve this?

Answered: 1 week ago