A2 Equity transactions: An examination of the ledger of Goodrich Metals revealed the iollowng b Prepare the stockholders' equity section of Goodrich's December 31 balance sheet, along with any appropriate notes to the financial state- (LO. 1, 2) sectin Dec. 31 Net income for the year amounted to $98,000. Closed the accounts on January 1: Common stock, $1 par, 50,000 shares authorized, 30,000 shares issued, 29,500 shares outstanding S 30,000 Paid-in capital in excess of par value Retained earnings Treasury stock, 500 shares at cost * Goodrich is required by state law to restrict retained eamings at an amount equal to the cost of any treasury shares held by the firm 270,000 370,500 6,000 The following transactions and events occurred during the year: Jan. 7 Declared a $0.20 dividend per share to stockholders of recort on January 23. The dividend will be distributed on February ! Feb. 8 Paid the dividend declared on January 7. Apr. 15 Sold 300 shares of treasury stock for $4,500. June 30 Declared a 10% stock dividend on the shares outstanding t stockholders of record on July 15. The dividend will be d tributed on August 15. Fair market value on the date of decir ration was $14 per share. Aug. 15 Issued the stock dividend declared on June 30. to Income Summary account to Retained Earnings. Instructions Prepare journal entries to record Goodrich's transactions and even ments.
A2 Equity transactions: An examination of the ledger of Goodrich Metals revealed the iollowng b Prepare the stockholders' equity section of Goodrich's December 31 balance sheet, along with any appropriate notes to the financial state- (LO. 1, 2) sectin Dec. 31 Net income for the year amounted to $98,000. Closed the accounts on January 1: Common stock, $1 par, 50,000 shares authorized, 30,000 shares issued, 29,500 shares outstanding S 30,000 Paid-in capital in excess of par value Retained earnings Treasury stock, 500 shares at cost * Goodrich is required by state law to restrict retained eamings at an amount equal to the cost of any treasury shares held by the firm 270,000 370,500 6,000 The following transactions and events occurred during the year: Jan. 7 Declared a $0.20 dividend per share to stockholders of recort on January 23. The dividend will be distributed on February ! Feb. 8 Paid the dividend declared on January 7. Apr. 15 Sold 300 shares of treasury stock for $4,500. June 30 Declared a 10% stock dividend on the shares outstanding t stockholders of record on July 15. The dividend will be d tributed on August 15. Fair market value on the date of decir ration was $14 per share. Aug. 15 Issued the stock dividend declared on June 30. to Income Summary account to Retained Earnings. Instructions Prepare journal entries to record Goodrich's transactions and even ments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:210-42 Equity transactions: Journal entries and stockholders' equity sectim
An examination of the ledger of Goodrich Metals revealed the iollowng
b Prepare the stockholders' equity section of Goodrich's December 31
balance sheet, along with any appropriate notes to the financial state-
Dec. 31 Net income for the year amounted to $98,000. Closed the
(L.O. 1, 2)
accounts on January 1:
Common stock, $1 par, 50,000 shares authorized,
30,000 shares issued, 29,500 shares outstanding
Paid-in capital in excess of par value
Retained earnings
Treasury stock, 500 shares at cost
* Goodrich is required by state law to restrict retained eamings at an
amount equal to the cost of any treasury shares held by the firm.
S 30,000
270,000
370,500
6,000
12
The following transactions and events occurred during the year:
Jan. 7 Declared a $0.20 dividend per share to stockholders of recori
on January 23. The dividend will be distributed on February
Feb. 8 Paid the dividend declared on January 7.
Apr. 15 Sold 300 shares of treasury stock for $4,500.
June 30 Declared a 10% stock dividend on the shares outstanding
stockholders of record on July 15. The dividend will be dis
tributed on August 15. Fair market value on the date of decl
ration was $14 per share.
Aug. 15 Issued the stock dividend declared on June 30.
Income Summary account to Retained Earnings.
Instructions
a Prepare journal entries to record Goodrich's transactions and evene
ments.
761
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