1. Record the transactions in the general journal. 2. Prepare a retained earnings statement for the year...
Question:
1. Record the transactions in the general journal.
2. Prepare a retained earnings statement for the year ended December 31, 2021. Net income for the year was $87,000.All construction was completed on October 31. Prepare the year-end journal entry to record depreciation expense assuming no depreciation has been recorded yet.
3. Prepare the stockholders' equity section of the balance sheet at December 31, 2021.
Part 1: Record Transactions
Choose from the following list to use for the statement.
• Stock Dividends
• Paid-In Capital in Excess of Par—Common
• Common Stock Dividend Distributable
• Common Stock Dividend Distributable
• Common Stock—$10 Par Value
• Treasury Stock—Common
• Checking
• Cash Dividends
• Dividends Payable—Common
• Cash
Part 2: Prepare Retained Earning Statement year end Dec. 31, 2021
Choose from the following list to use for the statement.
• Retained Earnings, January 1, 2020
• Stock dividends declared
• Net income for the year
• Retained Earnings, December 31, 2021
• Cash dividends declared
Part 3: Prepare the stockholders’ equity section of balance sheet at Dec. 31, 2021
Choose from the following list to use for the statement.
• Paid-In Capital
• Total Stockholders' Equity
• Common Stock—$10 Par Value
• shares authorized
• Paid-In Capital in Excess of Par—Common
• shares outstanding
• Total Paid-In Capital
• shares at cost
• Retained Earnings
• shares issued
• Treasury Stock—Common
6-Feb: declared 5% stock dividend. The market value of the stock on that date was $25 a share
15- Feb: Distributed the stock dividend
29- July: Purchased 2,000 shares treasury stock at $25 a share
27-Nov: Declared a cash dividend of .20 a share
Common stock- $10 PV; 200,000 shares authorized, 22,000 shares issued- credit balance 220,000
Paid-In capital- 360,000 credit balance
Retained Earnings- 163,000 credit balance
