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The stockholders equity accounts of Cyrus Corporation on January 1, 2017, were as follows. Preferred Stock ( 7%, $ 100 par noncumulative, 5,000 shares authorized)

The stockholders equity accounts of Cyrus Corporation on January 1, 2017, were as follows.

Preferred Stock ( 7%, $ 100 par noncumulative, 5,000 shares authorized) $ 300,000
Common Stock ($ 4 stated value, 300,000 shares authorized) 1,000,000
Paid-in Capital in Excess of Par ValuePreferred Stock 15,000
Paid-in Capital in Excess of Stated ValueCommon Stock 480,000
Retained Earnings 699,500
Treasury Stock ( 5,000 common shares) 40,000

During 2017, the corporation had the following transactions and events pertaining to its stockholders equity.

Feb. 1 Issued 5,000 shares of common stock for $ 30,000.
Mar. 20 Purchased 1,000 additional shares of common treasury stock at $ 8 per share.
Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1.
Nov. 1 Paid the dividend declared on October 1.
Dec. 1 Declared a $ 0.70 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017.
Dec. 31 Determined that net income for the year was $ 277,400. Paid the dividend declared on December 1.

Instructions

(a) Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.)image text in transcribed

Common Stock 20,000 Paid-in Capital in Excess of Par Value-Common Stock 10,000 Treasury Stock 8,000 Cash 8,000 Cash Dividends 21,000 Dividends Payable 21,000 Dividends Payable 21,000 Cash 21,000 Cash Dividends 170,800 Dividends Payable 170,800 Income Summary 277,400 Retained Earnings 277,400 To record net income) Retained Earnings 170,800 Cash Dividends 170,800 (To close cash dividends) Dividends Payable 170,800 Cash 170,800

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