1. No errors have been made in recording 2022 transactions or in preparing the closing entry for net income. 2. Preferred stock is $50 par, 6%, and cumulative; 15,200 shares have been outstanding since January 1, 2021. 3. Authorized stock is 20,200 shares of preferred, 480,000 shares of common with a $10 par value. 4. The January 1 balance in Retained Earnings was $1,140,000. 5. On July 1, 19,600 shares of common stock were issued for cash at $16 per share. On September 1, the company discovered an understatement error of $87,400 in computing salaries and wages expense in 2021. The net of tax effect of $61,180 was properly debited directly to Retained Earnings. 6. 7. A cash dividend of $240,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021. 8. On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16. 9. Net income for the year was $598,000. 10. On December 31, 2022, the directors authorized disclosure of a $209,000 restriction of retained earnings for plant expansion. (Use Note X.)
1. No errors have been made in recording 2022 transactions or in preparing the closing entry for net income. 2. Preferred stock is $50 par, 6%, and cumulative; 15,200 shares have been outstanding since January 1, 2021. 3. Authorized stock is 20,200 shares of preferred, 480,000 shares of common with a $10 par value. 4. The January 1 balance in Retained Earnings was $1,140,000. 5. On July 1, 19,600 shares of common stock were issued for cash at $16 per share. On September 1, the company discovered an understatement error of $87,400 in computing salaries and wages expense in 2021. The net of tax effect of $61,180 was properly debited directly to Retained Earnings. 6. 7. A cash dividend of $240,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2021. 8. On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16. 9. Net income for the year was $598,000. 10. On December 31, 2022, the directors authorized disclosure of a $209,000 restriction of retained earnings for plant expansion. (Use Note X.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please dont copy paste thnku
Transcribed Image Text:Reproduce the Retained Earnings account for 2022. (List items in order presented in the problem.)
Retained Earnings
correc
>
>
>
Transcribed Image Text:No errors have been made in recording 2022 transactions or in preparing the closing entry for net income.
2.
Preferred stock is $50 par, 6%, and cumulative; 15,200 shares have been outstanding since January 1, 2021.
3.
Authorized stock is 20,200 shares of preferred, 480,000 shares of common with a $10 par value.
4.
The January 1 balance in Retained Earnings was $1,140,000.
5.
On July 1, 19,600 shares of common stock were issued for cash at $16 per share.
On September 1, the company discovered an understatement error of $87,400 in computing salaries and wages expense in
2021. The net of tax effect of $61,180 was properly debited directly to Retained Earnings.
6.
7.
A cash dividend of $240,000 was declared and properly allocated to preferred and common stock on October 1. No
dividends were paid to preferred stockholders in 2021.
On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market
price per share was $16.
8.
9.
Net income for the year was $598,000.
10.
On December 31, 2022, the directors authorized disclosure of a $209,000 restriction of retained earnings for plant
expansion. (Use Note X.)
1.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education