Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders. Using the info above and as a guide:Prepare the journal entries with narrations to record the following:The issuances of stock.Close out net income to retained earnings.Dividend declared.Close out dividend to retained earnings.

Journal entries are the entries made at first in the books of accounts to record a financial…

Answered: journal entries with narrations

Business

Accounting

journal entries with narrations

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On December 31, the stockholders' equity section of the balance sheet of Monk Associates reflected…

A: Source of raising funds includes: Issue of common stock Issue of debts securities i.e. Bonds,…

Q: Kinkaid Company was incorporated at the beginning of this year and had a number of transactions. The…

A: The Number of Shares Outstanding refers to the shares issued by a company, excluding any treasury…

Q: Kinkaid Company was incorporated at the beginning of this year and had a number of transactions. The…

A: The equity refers to the amount invested by the owners in the business. In the case of a public…

Q: Match (by letter) the following terms with their definitions. Each letter is used only…

A: As per the clear observation, all the items listed above are either a part of or related to…

Q: Prepare a classified balance sheet for Tucson Company for the year ended December 31 using the…

A: Accounting equation indicates that company's total assets are equal to the sum of its liabilities…

Q: Indicate whether each of the following transactions increases (+), (decreases (-), or has no effect…

A: The accounting equation is written as: Assets = Liabilities +Owner's Equity

Q: Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net…

Q: Required information. PA11-1 (Algo) Analyzing Accounting Equation Effects, Recording Journal…

A: The stockholders' equity includes the issued capital and retained earnings of the business. The…

Q: The following information was obtained from the records of Shae Inc.: Merchandise inventory Notes…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The general ledger of Pukalani Corporation, a publicly traded company, contained the following…

A: General ledger accounts are the records of every single account heads that was affected through the…

Q: Entries for Cash Dividends The declaration, record, and payment dates in connection with a cash…

A: Dividends payable are recorded when declared. The record date is to make a list of shareholders to…

Q: Required information [The following information applies to the questions displayed below.) Donnie…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: M-E Drafting Incorporated reports the following statement of stockholders' equity. Solve for the…

A: Total Stockholder's equity = Common Stock + Additional Paid in capital + Retained…

Q: Sunland Company purchased from its stockholders 5,300 shares of its own previously issued stock for…

A: Journal entry records the transactions of the business into the books of accounts of the entity and…

Q: Cheyenne Corp. was organized on January 1, 2025. It is authorized to issue 21,000 shares of 7%, $50…

A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…

Q: On January 1, 2022, Sheffield Corp. had the following stockholders' equity accounts. Common Stock…

A: Stockholder's Equity -A financial statement that shows the issuance of common stock, paid-in capital…

Q: How would I prepare this balance sheet? I've included the trial balance and below is the statement…

A: A balance sheet refers to the statement prepared by the company by stating the assets, liabilities,…

Q: On May 1, Year 1, Love Corporation declared a $51,000 cash dividend to be paid on May 31 to…

A: The accounting equation is a mathematical representation of financial transactions. The accounting…

Q: Which of the following statements is true when dividends are not declared on cumulative preferred…

A: Cumulative preference share means where the dividend in arrears of last year will also be paid.…

Q: The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of…

A: The accounting equation is Total assets = Total shareholders equity + Total liabilities

Q: Additional information about the company follows. Common stock market price, December 31, Current…

A: Ratio Analysis -The ratio is the technique used by the prospective investor or an individual or…

Q: please answer parts 16, 17, and 18

A: Ratio analysis is performed with a view to evaluate the different operational aspects of the…

Q: Indicate the correct order in which to report the following accounts in the stockholders’ equity…

A: Stockholders' equity, also referred to as shareholders' equity, is the remaining amount of assets…

Q: Zen Aerospace Corporation reported the following equity account balances on December 31, 2022:…

A: Journal Entries:-A journal entry is a written record of a business transaction that is recorded in…

Q: Compute number of shares outstanding after the stock dividend. Number of shares outstanding

A: Stock dividend means a payment given to the shareholders in shares instead of a cash payment. Stock…

Q: Prepare entries to record both the dividend declaration and its distribution.

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: For the purpose of calculating earnings per share (EPS), the denominator is: Select one: a.…

A: The earning per share is a financial ratio which tells about the profitability of the business.

Q: Declaration of cash dividends will … a. Increase the retained earnings b. Increase the stockholders’…

A: Solution 1: Declaration of cash dividends will "Decrease the retained earnings" because at the time…

Q: select whether each of the following transactions increases (+) or decreases (-) total assets, total…

A: The accounting equation states that assets equal liabilities and equity. Whenever any transaction is…

Q: The Declaration on a stock dividend changes to total amount stockholder’s equity of the firm.…

A: Please find the answer to the above question below:

Q: Why is the statement of stockholders equity prepared before the June 39, 29Y9 balance sheet?

A: Stockholder’s equity: Stockholders' equity might include common stock, paid-in capital, retained…

Q: 7. Number of days' sales in inventory days 8. Ratio of fixed assets to long-term liabilities 9.…

A: Number of days' sales in inventory=365Inventory turnover Ratio of fixed assets to long-term…

Q: Where are dividends in arrears reported? Group of answer choices statement of stockholders' equity…

A: The question is asking where dividends in arrears are reported in a company's financial statements.…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders.

Using the info above and as a guide:

Prepare the journal entries with narrations to record the following:

The issuances of stock.
Close out net income to retained earnings.
Dividend declared.
Close out dividend to retained earnings.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Concept of journal entries

VIEW

Journal entries with narrations

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Financial Statements from the End-of-Period Spreadsheet Triton Consulting is a consulting firm owned and operated by Jayson Neese. The following end-of-period spreadsheet was prepared for the year ended April 30, 20Y3: During the year ended April 30, 20Y3, common stock of $5,000 vwas issued. Triton Consulting End-of-Period Spreadsheet For the Year Ended April 30, 20Y3 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 21,500 21,500 Accounts Receivable 51,150 51,150 Supplies 2,400 1,650 750 Office Equipment 32,000 32,000 Accumulated Depreciation 4,500 900 5,400 Accounts Payable 3,350 3,350 Salaries Payable 2,000 2,000 Common Stock 20,000 20,000 Retained Earnings 52,200 52,200 Dividends 10,000 10,000 Fees Earned 279,000 279,000 Salary Expense 240,000 2,000 242,000 Supplies Expense 1,650 1,650 Depreciation Expense 900 900 Miscellaneous Expense 2,000 2,000 359,050 359,050 4,550 4,550 361,950 361,950
please answer it with complete and correct working and steps answer in text
On May 1, Year 1, Love Corporation declared a $47,700 cash dividend to be paid on May 31 to shareholders of record on May 15. Required a. Record the events occurring on May 1, May 15, and May 31 in a horizontal statements model. b. Prepare journal entries for all events associated with the dividend. Complete this question by entering your answers in the tabs below. Required A Required B Record the events occurring on May 1, May 15, and May 31 in a horizontal statements model. (In the Statement of Cash Flows column, indicate whether the item is an op (OA), investing activity (1A), or financing activity (FA). Leave blank to indicate that an element was not affected by the event. Enter amounts to be deducted and cash out minus sign.) Date May 01 May 15 May 31 Assets Balance Sheet Liabilities + * LOVE CORPORATION Horizontal Statements Model Common Stock Retained Earnings Revenue Required A Statement Expenses Net Income Required B > Statement of Cash Flows
31. Closed the credit balance of the income summary account, $269,400. 2. Journalize the entries to record the transactions, and post to the eight selected Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. listed. Also prepare T accounts for the following: Paid-In Capital from Sale cf July 1. Declared a 4% stock dividend on common stock, to be capitalized at the 1. Enter the January 1 balances in T accounts for the stockholders' equity accounts FROBLEM 12-4B Btries for selected oporate transactions Objectives 4, 5, 7, 8 Shoshone Enterprises Inc. manufactures bathroom fixtures. The stockholders' equity accounts of Shoshone Enterprises Inc., with balances on January 1, 2006, are as follows: Common Stock, $20 stated value (100,000 shares authorized, 75,000 shares issued) Paid-In Capital in Excess of Stated Value Retained Earnings.. Treasury Stock (5,000 shares, at cost) $1,500,000 180,000 725,000 140,000 ADNET ASS The following selected transactions occurred…
How are dividends per share for common stock used in the calculation of the following? O A. O B. O c. OD. Dividends per share payout ratio Numerator Numerator Denominator Denominator Earnings per share Numerator Not used Not used Denominator
Given the following data, what is the ending balance in the common stock account? 634,438 Total assets, ending Total liabilities, ending 321,286 69,495 32,445 279,868 180,251 Retained Earnings, ending Dividends declared Revenues Expenses Your Answer: Answer
Dividends in arrears on preference shares are reported in the financial statements as a (an) a. liabilityb. reduction from Retained Earningsc. reduction from Retained Earningsd. expense
d. mutual agency for stockholders 20. Stockholders' equity a. is usually equal to cash on hand b. is shown on the income statement c. includes paid-in capital and liabilities d. includes retained earnings and paid-in capita blec bise
Calgate Company had the following shares outstanding and retained earnings at the end of the current year: Preferred shares, 4% (par value $15; outstanding, 10,300 shares) Common shares (outstanding, 33,000 shares) Retained earnings The board of directors is considering the distribution of a cash dividend to both groups of shareholders. No dividends were declared during the previous two years. Three independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of dividends is $51,600. Case B: The preferred shares are cumulative; the total amount of dividends is $63,000. Case C: Same as case B, except the amount is $97,500. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. (Round "Per share" to 2 decimal places.) Case A: Total Per share Case B: Total Per share $ 154,500 615,000 296,000 Case C: Total Per share Preferred Shares Common Shares
hich of the following is not true about the stockholders' equity section of a balance sheet? a. Stock characteristics are indicated. b. Preferred stock subscriptions receivable, common stock subscriptions receivable, and treasury stock are subtracted from the total of paid - in capital and retained earnings. c. Contra equity accounts are shown at the beginning of the stockholders' equity section of a balance sheet. d. Retained earnings is listed after all paid - in capital.