Buzz Newsstand is authorized to issue 100,000 shares of $5 par common stock and 5,000 shares of $100 par, preferred 8% stock. On January 1, the beginning of the period, the stockholders’ equity accounts had the following balances: 

Instructions 

In your working papers:

1. Record the following transactions on general journal page 42. Close the Dividends and Retained Earnings accounts.

2. Prepare the stockholders’ equity section of the balance sheet.

Transcribed Image Text:

301 Preferred Stock 302 Paid-in Capital in Excess of Par-Preferred 303 Common Stock 304 Paid-in Capital in Excess of Par-Common 305 Retained Earnings 307 Dividends-Preferred 308 Dividends-Common $150,000 11,250 225,000 112,500 366,800 0 0