RETAINED EARNINGS ACCOUNTS AND STATEMENT On January 1, 20-, Glover Company's retained earnings accounts had the...

  

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RETAINED EARNINGS ACCOUNTS AND STATEMENT On January 1, 20-, Glover Company's retained earnings accounts had the following balances: Appropriated for land acquisition Unappropriated retained earnings $ 60,000 900,000 $960,000 During the year ended December 31, 20-, Glover completed the following selected transactions: Mar. 20 Declared a semiannual dividend of $0.80 per share on preferred stock and $0.25 per share on common stock to shareholders of record on April 10, payable on April 15. Currently, 10,000 shares of $50 par preferred stock and 100,000 shares of $5 par common stock are outstanding. Apr. 15 Paid the cash dividends. Oct. 10 Declared semiannual dividend of $0.80 per share on preferred stock and $0.25 per share on common stock to shareholders of record on November 5, payable on November 10. Nov. 10 Paid the cash dividends. 17 Declared a 5% stock dividend to shareholders of record on December 8, distributable on December 15. Market value of the common stock was estimated at $18 per share. Dec. 15 Issued certificates for common stock dividend. 31 Net income for 20- was $290,000. Closed the income summary account. 31 Closed the cash dividends and stock dividends accounts. REQUIRED 1. Prepare journal entries for the transactions. 2. Post all entries affecting the retained earnings accounts to T accounts. 3. Prepare a statement of retained earnings for the year ended December 31, 20--. RETAINED EARNINGS ACCOUNTS AND STATEMENT On January 1, 20-, Glover Company's retained earnings accounts had the following balances: Appropriated for land acquisition Unappropriated retained earnings $ 60,000 900,000 $960,000 During the year ended December 31, 20-, Glover completed the following selected transactions: Mar. 20 Declared a semiannual dividend of $0.80 per share on preferred stock and $0.25 per share on common stock to shareholders of record on April 10, payable on April 15. Currently, 10,000 shares of $50 par preferred stock and 100,000 shares of $5 par common stock are outstanding. Apr. 15 Paid the cash dividends. Oct. 10 Declared semiannual dividend of $0.80 per share on preferred stock and $0.25 per share on common stock to shareholders of record on November 5, payable on November 10. Nov. 10 Paid the cash dividends. 17 Declared a 5% stock dividend to shareholders of record on December 8, distributable on December 15. Market value of the common stock was estimated at $18 per share. Dec. 15 Issued certificates for common stock dividend. 31 Net income for 20- was $290,000. Closed the income summary account. 31 Closed the cash dividends and stock dividends accounts. REQUIRED 1. Prepare journal entries for the transactions. 2. Post all entries affecting the retained earnings accounts to T accounts. 3. Prepare a statement of retained earnings for the year ended December 31, 20--.

Answer rating: 100% (QA)

on Jan 120 bate ACCOunt name Debit Csedit nov 17 STOCK DIvidend 90000 TO StOck Dividend Distoib... View the full answer