Unappropriated retained earnings Appropriation for contingencies less Treasury stock Total stockholders' equity 250,000 50,000 0 XXXXXXXXXXXXX C d e XXXXXXX On January 1, 20x5, JV purchased 1,000 of its own common shares for $23 each. Use the cost method. On March 1, 20x5, JV reissued 500 of the shares acquired on January 1 at $33. On June 30, the JV's Board of Directors increased the appropriation for contingencies to $75,000. On December 15, JV declared the annual 6 percent cash dividend on preferred stock. No dividends were in arrears. No common stock dividend was declared. On December 31, JV prepared the closing entry for its $100,000 net income and the dividends declared on preferred stock.

On March 1, 20x5, JV reissued 500 of the shares acquired on January 1 at $33. On June 30, the JV's Board of Directors increased the appropriation for contingencies to $75,000. On December 15, JV declared the annual 6 percent cash dividend on preferred stock. No dividends were in arrears. No common stock dividend was declared. On December 31, JV prepared the closing entry for its $100,000 net income and the dividends declared on preferred stock