Wingate Corporation was formed several years ago. The following is a list of its stockholders’ equity accounts and balances as of June 1, 2014.

Preferred Stock

7%, $100 par, cumulative, 2,000 shares authorized, 1,500 shares issued $ 150,000

Preferred Stock Subscribed -0-

Paid-In Capital in Excess of Par – Preferred 30,000

Common Stock

$10 stated value, 20,000 shares authorized, 16,000 shares issued 160,000

Common Stock Subscribed

2000 shares 20,000Common Stock Dividends Distributable -0-

Paid-In Capital in Excess of Stated Value 100,000

Retained Earnings 225,500

Treasury Stock -0-

Paid-In Capital from Sale of Treasury Stock -0-

Directions:

1. Open a T account for each of the stockholders’ equity accounts, including those with zero balances. Enter the balance in each account that has one.

2. Record the transactions for June that follow in a general journal. Use the account that you have opened as well as any other accounts needed.

3. Post only to the Stockholders’ Equity accounts as you proceed. Posting to other accounts is not required.

4. Prepare a retained earnings statement for the month of June, 2014.

5. Prepare the Stockholders’ Equity section of the June 30, 2014, balance sheet.

2014

Jun.1 Issued $400,000 of 10-year, 6% bonds, dated June 1, 2014, at 104. Interest dates are June 1 and December 1.

3 Collected the balance due from the common stock subscribers. The stock was subscribed to “at par.” Issued the stock.

4 Purchased 1,000 shares of Coca-Cola stock for $48.25 per share, plus a $550 broker’scommission.

5 Issued 500 shares of common stock for cash at $12.50 a share.

Jun.7 Invested $40,000 cash in a sinking fund for the bonds issued on June 1.

8 Issued 200 shares of preferred stock for cash at $105 per share.

9 Paid a $10,000 dividend declared on April 15, 2014, to stockholders of record on June 1, 2014.

10 Received a subscription to 100 shares of preferred stock at $106 per share.

11 Received 20% of the subscription price from all subscribers to the subscription of June 10.

14 Issued 300 shares of common stock in exchange for a used truck valued at $4,000.

17 Reacquired 500 shares of our own common stock at $12 a share.

22 Sold 450 of the shares purchased on June 17 at $14 a share.

23 Sold the other 50 treasury shares at $13.75 a share.

26 Received semiannual interest on a $200,000, 6% investment in Sarah Lee Corporation bonds

.30 Declared a 5% stock dividend on the common stock outstanding. The market price of the common stock on this date is $14 a share. Wingate records dividends as a direct debit to the Retained Earnings account.

30 After closing revenue and expense accounts, the Income Summary account shows a $45,000 credit balance.

Check Figures: Retained Earnings, $257,340.00 (Retained Earnings Statement, June 30, 2014) Total Stockholder’s Equity, $773, 337.50 (Balance Sheet, Partial, June 30, 2014)