Question

London Jewelry Company reported the following summarized balance sheet at December 31, 2014:
Assets
Current assets............................................................. $ 59,400
Property and equipment, net........................................ 101,300
Total assets............................................................... $160,700
Liabilities and Equity
Liabilities ............................................................... $ 34,500
Stockholders’ equity:
$0.40 cumulative preferred stock, $10 par,
800 shares issued..................................................... 8,000
Common stock, $8 par, 6,700 shares issued................ 53,600
Paid-in capital in excess of par—common................... 18,600
Retained earnings........................................................ 46,000
Total liabilities and equity........................................ $160,700
During 2015, London Jewelry completed the following transactions that affected stockholders’ equity:
Feb 13 Issued 6,200 shares of common stock for $11 per share.
Jun 7 Declared the regular cash dividend on the preferred stock.
24 Paid the cash dividend.
Aug 9 Declared and distributed a 5% stock dividend on the common stock. Market price of the common stock was $15 per share.
Oct 26 Reacquired 200 shares of common stock as treasury stock, paying $17 per share.
Nov 20 Sold 50 shares of the treasury stock for $19 per share.
Dec 31 Declared a cash dividend of $0.25 per share on the outstanding common stock; dividends will be paid in January, 2016.

Requirements
1. Journalize London Jewelry’s transactions. Explanations are not required.
2. Report London Jewelry’s stockholders’ equity at December 31, 2015. Net income for 2015 was $31,000.



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  • CreatedJuly 25, 2014
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