Question
The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows: Common Stock, $1 par 160,000 Paid-in Capital in Excess of Par
The stockholders' equity accounts of Karp Company at January 1, 2017, are as follows:
Common Stock, $1 par 160,000
Paid-in Capital in Excess of Par - Common Stock 60,000
Retained Earnings 120,000
During 2017, the company had the following transactions and events.
July 1 Declared a $0.10 cahs dividend per share on common stock
Aug 1 Discovered $2,000 understatement of depreciation expense in 2016 (Ignore income taxes)
Sept 1 Paid the cash dividend declared on July 1
Dec 1 Declared a 10%5 stock dividend on common stock when the market price of the stock was $3.6 per share
Dec 31 Determined that net income for the year was $71,000
Dec 31 Recognized a $20,000 restriction of retained earnings for plant expansion
Jounalize the transactions, events, and closing entries for net income and dividends!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started