Question

The Stockholders’ Equity section of the balance sheet for Choo’s Video, Inc., as of January 1 is as follows:


Some of the transactions that took place during the year are as follows:
May 10 Declared the regular semiannual $ 4.50 per share dividend on the preferred stock and a $ 1.40 per share dividend on the common stock to stockholders of record as of June 1, payable on June 10.
June 2 Received subscriptions to 11,000 shares of common stock at $ 27 per share, collecting 60 percent of the subscription price.
10 Paid cash dividends declared on May 10.
26 Subscribers to 11,000 shares of common stock paid the remaining 40 percent of the subscription price; Choo’s Video, Inc., then issued the 11,000 shares.
Nov. 10 Declared the regular semiannual $ 4.50 per share dividend on the preferred stock and a $ 1.60 per share dividend on the common stock to stock holders of record as of December 1, payable on December 10.
Dec. 10 Paid cash dividends declared on November 10.
27 Declared a 5 percent stock dividend on common stock outstanding to stockholders of record as of January 14, distributable on January 30. Current market value of the stock is $ 27 per share.
31 Increased the appropriation for contingencies by $ 53,000.
31 After the accountant closes all revenue, expense, and Income Tax Expense accounts, the Income Summary account has a credit balance of $ 340,000. Closed the Income Summary account.

Required
1. Enter in the ledger accounts the balances appearing in the Stockholders’ Equity section of the balance sheet as of January 1. In the Item column of the stock accounts, record the word Balance on the first line and the number of shares on the second line.
2. Journalize entries in general journal form on pages 54 and 55 to record the transactions that occurred during the year and post to the stockholders’ equity accounts.
3. Prepare the Stockholders’ Equity section of the balance sheet as of December31.


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  • CreatedOctober 21, 2014
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