The stockholders' equity accounts of Genisus Corporation on January 1, 20X1, contained the following balances:

Preferred Stock (10%, $100 par value, 10,000 shares authorized)
Issued and Outstanding, 2,000 Shares	$	200,000
Paid-in Capital in Excess of Par ValuePreferred		2,000		$	202,000
Common Stock ($20 par value, 100,000 shares authorized)
Issued and Outstanding, 20,000 Shares					400,000
Retained Earnings					325,000
Total Stockholders Equity				$	927,000

Transactions affecting stockholders equity during 20X1 follow.

DATE				TRANSACTIONS
June		15		Declared a semiannual dividend of 5 percent on preferred stock, payable on July 15 to stockholders of record on June 30.
July		15		Paid the dividend on preferred stock.
Dec.		15		Declared a semiannual dividend of 5 percent on preferred stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1, and a cash dividend of $2 per share on common stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1. Make separate entries.
		15		Declared a 10 percent common stock dividend to common stockholders of record on December 31, 20X1. The new shares are to be issued on January 15, 20X2. A fair value price of $25 per share is expected for the new shares of common stock.
Dec.		31		Created an appropriation of retained earnings for contingencies of $75,000 because of the poor economic outlook.
		31		The Income Summary account contained a debit balance of $25,000. The board had anticipated a net loss for the year and no quarterly deposits of estimated income taxes were made, so income taxes may be ignored.

Required:

1. & 2. Record the above transactions in the general journal for 20X1 and post them to the Retained Earnings account (381) and record the January 1, 20X1, balance.

1. Prepare a statement of retained earnings for the year 20X1.

Analyze: If Genisus Corporation had not declared cash or stock dividends for common stockholders, what balance would be found in the unappropriated Retained Earnings account at December 31, 20X1?

Journal entry worksheet 5 9 Record the 5% dividend on preferred stock, payable on July 15 to holders of record on June 30 . Note: Enter debits before credits. Journal entry worksheet Record the entry on the date of record for the dividends declared on Jun. 15. Note: Enter debits before credits. Journal entry worksheet