Identifying and Analyzing Financial Statement Effects of DividendsModuleCommon stock, $$10$ ?par value, $200,000$ ?shares authorized;During $2016,$ ?the following transactions occurred:a$.$ ?Using the financial statement effects template, illustrate the effects of these transactions.Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital.b$.$ ?Prepare the journal entries for these transactions.c$.$ ?Post the journal entries from $?$ ?to the related $?-$accounts.d$.$ ?Prepare a retained earnings reconciliation for $2016$ ?assuming that the company reports $2016$ ?net income of $$283,000.$Do not use negative signs with answers below.PALEPU COMPANY

Transcribed Image Text:

Identifying and Analyzing Financial Statement Effects of Dividends ockholders' equity of Palepu Company at December 31, 2015, appears below. Module Common stock, $10 par value, 200,000 shares authorized; 85,000 shares issued and outstanding Paid-in capital in excess of par Retained earnings value $850,000 480,000 315,000 During 2016, the following transactions occurred: May 12 Declared and issued a 8% stock dividend; the common stock market value was $18 per share. Dec. 31 Declared and paid a cash dividend of 75 cents per share. a. Using the financial statement effects template, illustrate the effects of these transactions. Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital. Balance Sheet Income Statement Transaction Cash Asset + Noncash Asset Liabilities + Contrib. Capital Earned + Capital Revenues Expenses Net Income 5/12 Declared and issued stock dividend 12/31 Declared and paid cash dividend 0 + 0 = 0 + 0 * + 0 0 + 0 * + 0 + 0 0 0 0 0 0 0 0 b. Prepare the journal entries for these transactions. General Journal Date Description Debit Credit 5/12 Retained earnings 0 0 Common Stock 0 0 Additional paid-in capital 0 0 12/31 Retained earnings 0 0 Cash 0 0 c. Post the journal entries from b to the related T-accounts. 5/12 12/31 Cash (A) 0 0 5/12 Common Stock (SE) 0 Retained Earnings (SE) Additional Paid-in Capital (SE) 0 0 12/31 0 0 0 5/12 0 0 12/31 0 5/12 12/31 0 0 0 0 d. Prepare a retained earnings reconciliation for 2016 assuming that the company reports 2016 net income of $283,000. Do not use negative signs with answers below. PALEPU COMPANY Statement of Retained Earnings For the Year Ended December 31, 2016 Retained earnings, December 31, 2015 $ 315,000 Add: Net income Less: Cash dividends declared Stock dividends declared Retained earnings, December 31, 2016 0 0 $ 0 0 0 $ 0 Identifying and Analyzing Financial Statement Effects of Dividends ockholders' equity of Palepu Company at December 31, 2015, appears below. Module Common stock, $10 par value, 200,000 shares authorized; 85,000 shares issued and outstanding Paid-in capital in excess of par Retained earnings value $850,000 480,000 315,000 During 2016, the following transactions occurred: May 12 Declared and issued a 8% stock dividend; the common stock market value was $18 per share. Dec. 31 Declared and paid a cash dividend of 75 cents per share. a. Using the financial statement effects template, illustrate the effects of these transactions. Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital. Balance Sheet Income Statement Transaction Cash Asset + Noncash Asset Liabilities + Contrib. Capital Earned + Capital Revenues Expenses Net Income 5/12 Declared and issued stock dividend 12/31 Declared and paid cash dividend 0 + 0 = 0 + 0 * + 0 0 + 0 * + 0 + 0 0 0 0 0 0 0 0 b. Prepare the journal entries for these transactions. General Journal Date Description Debit Credit 5/12 Retained earnings 0 0 Common Stock 0 0 Additional paid-in capital 0 0 12/31 Retained earnings 0 0 Cash 0 0 c. Post the journal entries from b to the related T-accounts. 5/12 12/31 Cash (A) 0 0 5/12 Common Stock (SE) 0 Retained Earnings (SE) Additional Paid-in Capital (SE) 0 0 12/31 0 0 0 5/12 0 0 12/31 0 5/12 12/31 0 0 0 0 d. Prepare a retained earnings reconciliation for 2016 assuming that the company reports 2016 net income of $283,000. Do not use negative signs with answers below. PALEPU COMPANY Statement of Retained Earnings For the Year Ended December 31, 2016 Retained earnings, December 31, 2015 $ 315,000 Add: Net income Less: Cash dividends declared Stock dividends declared Retained earnings, December 31, 2016 0 0 $ 0 0 0 $ 0

Answer rating: 100% (QA)

To illustrate the effects of the transactions and prepare the jo... View the full answer