Question
Whispering Corporation has the following capital structure at the beginning of the year: 4% Preferred stock, $50 par value, 20,000 shares authorized, 5,000 shares issued
Whispering Corporation has the following capital structure at the beginning of the year:
4% Preferred stock, $50 par value, 20,000 shares authorized, 5,000 shares issued and outstanding $250,000
Common stock, $10 par value, 60,000 shares authorized, 42,000 shares issued and outstanding 420,000
Paid-in capital in excess of par 117,000
Total paid-in capital 787,000
Retained earnings 439,000
Total stockholders' equity $1,226,000
Record the following transactions which occurred consecutively. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
1. A total cash dividend of $75,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.
2. A 15% common stock dividend was declared. The average fair value of the common stock is $22 a share.
3. Assume that net income for the year was $148,000 (record the closing entry) and the board of directors appropriated $65,000 of retained earnings for plant expansion.
No.
Account Titles and Explanation
Debit
Credit
1.
2.
3.
(To record the closing entries.)
(To record appropriated retained earnings.)
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Construct the stockholders' equity section incorporating all the above information.
WHISPERING CORPORATION
Balance Sheet (Partial)
$
$
$
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