Sign In Sign Up Ask an AI advisor
Chavens520
Chavens520
13.07.2021 • 
Business

Accounts Amount Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding) $1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding) $1,000,000
Paid-in Capital in Excess of par, Common 150,000
Retained Earnings 700,000

The following events occurred during 2014 and were not recorded:

a. On January 1, Flimsy declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
b. On February 15, Flimsy re-acquired 1,000 shares of common stock for $20 each.
c. On March 31, Flimsy re-issued 250 shares of treasury stock for $25 each.
d. On July 1, Flimsy re-issued 500 shares of treasury stock for $16 each.
e. On October 1, Flimsy declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
f. One December 15, Flimsy split common stock 2 shares for 1.
g. Net Income for 2014 was $275,000.

Required:
1. Prepare journal entries for the transactions listed above.
2. Prepare a Stockholders' section of a classified balance sheet as of December 31, 2014.

Solved
Show answers

Ask an AI advisor a question

I want advice