On January 1, 20--, Dover Companys retained earnings accounts had the following balances: Appropriated for printing press........$

Question:

On January 1, 20--, Dover Company’s retained earnings accounts had the following balances:

Appropriated for printing press........$ 50,000

Unappropriated retained earnings......800,000

...................$850,000

During the year ended December 31, 20--, Dover completed the following selected transactions:

Mar. 15 Declared a semiannual dividend of $0.30 per share on preferred stock and $0.40 per share on common stock to shareholders of record on April 5, payable on April 10. Currently, 5,000 shares of $10 par preferred stock and 30,000 shares of $2 par common stock are outstanding.

Apr. 10 Paid the cash dividend.

July 2 Last year, Dover’s board of directors appropriated $100,000 over a two-year period for a printing press. Made this year’s appropriation for $50,000.

Sept. 15 Declared semiannual dividend of $0.30 per share on preferred stock and $0.40 per share on common stock to shareholders of record on October 5, payable on

October 10.

Oct. 10 Paid the cash dividend.

Nov. 10 Board of directors declared a two-for-one common stock split.

Dec. 31 Net income for 20-- was $135,000. Closed the income summary account.

31 Closed the cash dividends account.

REQUIRED

1. Prepare journal entries for the transactions.

2. Post all entries affecting the appropriated and unappropriated retained earnings accounts to T accounts.

3. Prepare a retained earnings statement for the year ended December 31, 20--.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For  answer-question

College Accounting

ISBN: 978-0538745192

20th Edition

Authors: Heintz and Parry

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