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The stockholders' equity accounts of Jacob Corporation on January 1, 2019, contained the following balances: Preferred Stock (10%, $100 par value, 4,000 shares authorized) Issued

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The stockholders' equity accounts of Jacob Corporation on January 1, 2019, contained the following balances: Preferred Stock (10%, $100 par value, 4,000 shares authorized) Issued and Outstanding, 2,100 Shares Paid-in Capital in Excess of Par Value-Preferred Common Stock ($20 par value, 11,000 shares authorized) Issued and Outstanding, 5,580 Shares Retained Earnings Total Stockholders' Equity $210,000 2,100 $ 212,100 110,000 388,280 $ 710,300 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, 2020, to stockholders of record on December 31, 2019, and a cash dividend of $3.90 per share on common stock, payable on January 15, 2020, to stockholders of record on December 31, 2019. Make separate entries. 15 Declared a 10 percent common stock dividend to common stockholders of record on December 31, 2019. The new shares are to be issued on January 15, 2020. A fair value price of $35 per share is expected for the new shares of common stock. Dec. 31 Created an "appropriation of retained earnings for contingencies" of $41,000 because of the poor economic outlook. 31 The Income Summary account contained a debit balance of $10,500. 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. 1. & 2. Record the above transactions in the general Journal for 2019 and Post them to the Retained Earnings account (381) and record the January 1, 2019, balance, 3. Prepare a statement of retained earnings for the year 2019, Analyze: If Jacob 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, 2019? Journal entry worksheet Record the $3.90 dividend per share on common stock, payable Jan. 15, 2020, to holders of record Dec. 31, 2019 Note: Enter debits before credits. Date General Journal Debit Credit Dec 15, 2019

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