The stockholders equity of Cyclone Corporation at January 1 follows: 6 Percent preferred stock, $25 par value,
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Question:
The stockholders’ equity of Cyclone Corporation at January 1 follows:
6 Percent preferred stock, $25 par value, 40,000 shares authorized; | |
25,000 shares issued and outstanding | $625,000 |
Common stock, $5 par value, 300,000 shares authorized; 85,000 shares | |
issued and outstanding | 425,000 |
Paid-in capital in excess of par value-Common stock | 560,000 |
Retained earnings | 830,000 |
Total Stockholders' Equity | $2,440,000 |
The following transactions, among others, occurred during the year:
June | 18 | Declared a 50 percent stock dividend on all outstanding shares of common stock. The market value of the stock was $15 per share. |
July | 1 | Issued the stock dividend declared on June 18. |
Dec. | 20 | Declared the annual cash dividend on the preferred stock and a cash dividend of $1.30 per share on the common stock, payable on January 20 to stockholders of record on December 28. |
Required
a. Prepare journal entries to record the foregoing transactions.
b. Prepare a statement of retained earnings. The net income for the year is $381,000.
Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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