Question
The Stockholders Equity section of the balance sheet of Serious Corporation on January 1, 2021, is shown below; selected transactions for the year follow: Stockholders
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Prepare General Journals for:
Repurchased 4,100 shares of the outstanding preferred stock for $45,100 in cash. The stock is to be held as treasury stock. Record the purchase.
State law requires that an amount of retained earnings equal to the cost of treasury stock held must be appropriated. Record the appropriation of retained earnings.
Declared a 2-for-1 stock split of common stock. Each shareholder will own twice as many shares as originally owned. Stated value is reduced to $25 per share. Date of record is March 15.
Issued new shares called for by split.
Declared semiannual dividend of 5 percent on preferred stock, to be paid on July 12 to holders of record on June 30.
Record the entry on the date of record for the dividend declared on June 17.
Paid cash dividend on preferred stock.
Purchased 600 shares of outstanding preferred stock at $10 per share to be held as treasury stock.
Record appropriated retained earnings equal to cost of the treasury stock.
Declared semiannual cash dividend of 5 percent on preferred stock to be paid on January 12 to holders of record on December 30.
Declared cash dividend of $1.40 per share on common stock to be paid on January 12 to holders of record on December 30.
Accepted title to a tract of land with an appraised value of $160,000 from the City of Greenville. The tract is to be used as a building site for the corporations new factory.
Record the entry on the date of record for the dividends declared on December 15.
Had net income after taxes for the year of $80,000. Give the entry to close the Income Summary account.
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