Question
The stockholders' equity section of Thomas Corporation's balance sheet at December 31, 2018, appears below: Preferred Stock, 6%, $15 stated value, 50,000 shares authorized; 10,000
The stockholders' equity section of Thomas Corporation's balance sheet at December 31, 2018, appears below:
Preferred Stock, 6%, $15 stated value, 50,000 shares authorized;
10,000 issued and outstanding 150,000
Paid-in capital in excess of stated value-preferred stock 30,000
Common stock, $10 par value, 400,000 shares authorized;
250,000 issued and outstanding 2,500,000
Paid-in capital in excess of par value-common stock 1,200,000
Retained earnings 600,000
During 2019, the following stock transactions occurred:
Jan. 18 Issued 50,000 shares of common stock at $30 per share.
Apr. 20 Purchased 25,000 shares of Thomas Corporation's common stock at $24 per share.
June 15 Issued 10,000 shares of preferred stock at $20 per share.
Oct. 1 Declared the preferred stock cash dividend.
Oct. 1 Declared a $0.41 per share cash dividend to common stockholders of record on October 15.
Dec. 1 Paid both dividends declared on October 1.
Net Income for the year was $100,000.
Requirements:
Enter beginning balances in ledger accounts.
Prepare the journal entries to record the above transactions.
Post the entries to the ledger T-accounts. Add accounts as needed.
Calculate the updated Retained Earnings balance.
Prepare the 2019 stockholders' equity section of the Balance Sheet for Thomas Corporation.
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