ueston 4 Partially correct Mark 2.67 out of 5.00 Retained Earnings: Transactions and Statement Flag question The stockholders' equity of Cydone Corporation at January 1 follows: 6 Percent preferred stock $25 par value, 50,000 shares authorized; 30.000 shares issued and outstanding $750,000 Common stock $5 par value, 300.000 shares authorized 90.000 shares Issued and outstanding 450,000 Paid-in capital in excess of par value-Common stock 560,000 Retained earnings 830.000 Total Stockholders' Equity $2.590.000 The following transactions, among others, occurred during the year. June 18 Declared a 50 persent stock dividend on all outstanding shares of common stock. The market value of the stock was $14 per share July Issued the stock dividend declared on June 18 Dec. 20 Declared the annual cash dividend on the preferred stock and a cash dividend of $1.30 per share on the common stock, payable on January 2010 stockholders of record on December 28 Required a. Prepare journal entries to record the foregoing transactions. General journal Date Description Jun 18 Stock Dividends Stock Dividends Distributable Debit 700,000 Credit Declared stock dividend a. Prepare journal entries to record the foregoing transactions. General Journal Date Description Jun 18 Stock Dividends Stock Dividends Distributable Jul.1 Stock Dividends Distributable Declared stock dividend. Common Stock Issued common shares as stock dividend. Dec 20 Cash Dividends Dividends Payable-Preferred Stock Dividends Payable - Common Stock Debit Credit $700,000 x 5 0x 20,000 x 20,000 x 0x 0x 0x Declared a cash dividend on preferred and common stock outstanding. b. Prepare a statement of retained earnings. The net income for the year is $380,000. Do not use negative signs with your answers. CYCLONE CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 0x Add: Net Income 0 x 0x Less: Cash Dividends Div 0x Stock Dividends Declared Retained Earnings, Dec 0x 0 x $ 0 x Question 4 Partially correct Mark 2.67 out of 5.00 Retained Earnings: Transactions and Statement Flag question The stockholders' equity of Cyclone Corporation at January 1 follows: 6 Percent preferred stock, $25 par value, 50,000 shares authorized 30.000 shares issued and outstanding $750,000 Common stock, $5 par value, 300,000 shares authorized: 90,000 shares issued and outstanding 450,000 Paid-in capital in excess of par value-Common stock 560,000 Retained earnings 830,000 Total Stockholders' Equity $2.590,000 The following transactions, among others, occurred during the year. June 18 Declared a 50 percent stock dividend on all outstanding shares of common stock. The market value of the stock was $14 per share July 1 Issued the stock dividend declared on June 18. Dec. 20 Declared the annual cash dividend on the preferred stock and a cash dividend of $1.30 per share on the common stock, payable on January 20 to stockholders of record on December 28. Required a. Prepare journal entries to record the foregoing transactions. Date General journal Description Stock Dividends Distributable Jun 18 Stock Dividends Debit Credit 700,000 $ Declared stock dividend. a. Prepare journal entries to record the foregoing transactions. General Journal Date Description Jun.18 Stock Dividends Stock Dividends Distributable Declared stock dividend. Jul.1 Stock Dividends Distributable Common Stock Issued common shares as stock dividend. Dec.20 Cash Dividends Debit $700,000 x 5 Credit 0x 20,000 x 0 20,000 x 0 x Dividends Payable - Preferred Stock 0 x Dividends Payable Common Stock 0~ 0x Declared a cash dividend on preferred and common stock outstanding b. Prepare a statement of retained earnings. The net income for the year is $380,000. Do not use negative signs with your answers, CYCLONE CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earnings, January 1 Add: Net Income 0x 0x Less: Cash Dividends Div 0x Stock Dividends Declared 0x 0x Retained Earnings, Dec. 0 x