Journalize transactions, post,and prepare a stockholders'equity section; calculateratios.P11-2B The stockholders' equity accounts of Warden Corporation on January 1, 2014,were as follows.Preferred Stock (9%, $50 par cumulative, 10,000 shares authorized)Common Stock ($1 stated value, 2,000,000 shares authorized)Paid-in Capital in Excess of Par Value-Preferred StockPaid-in Capital in Excess of Stated Value-Common StockRetained EarningsTreasury Stock (8,000 common shares)$ 200,0001,000,00016,0001,400,0001,716,00020,000(LO 2, 3, 5, 7, 8), APGLSDuring 2014 the corporation had these transactions and events pertaining to its stock-holders' equity.Feb.Issued 20,000 shares of common stock for $160,000.Purchased 4,000 shares of common stock for the treasury at a cost of$16,000.Declared a 9% cash dividend on preferred stock, payable December 15.Declared a $0.30 per share cash dividend to common stockholders ofrecord on December 15, payable December 31, 2014.Nov. 10Nov. 15Dec.1Problems: Set B 613Paid the dividend declared on November 15.Determined that net income for the year was $408,000. The market price ofthe common stock on this date was $5 per share. Paid the dividend declaredon December 1.Dec. 1531Instructions(a) Journalize the transactions. (Include entries to close net income and dividends toRetained Earnings.)

Step 1 Journal is the part of the book keeping.

Paid the dividend declared on November 15. Determined that net income for the year was $408,000. The market price of the common stock on this date was $5 per share, Paid the dividend declared on December 1. Dec. 15 31 Instructions and dividends to

Paid the dividend declared on November 15. Determined that net income for the year was $408,000. The market price of the common stock on this date was $5 per share, Paid the dividend declared on December 1. Dec. 15 31 Instructions and dividends to

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

Journalize transactions, post,
and prepare a stockholders'
equity section; calculate
ratios.
P11-2B The stockholders' equity accounts of Warden Corporation on January 1, 2014,
were as follows.
Preferred Stock (9%, $50 par cumulative, 10,000 shares authorized)
Common Stock ($1 stated value, 2,000,000 shares authorized)
Paid-in Capital in Excess of Par Value-Preferred Stock
Paid-in Capital in Excess of Stated Value-Common Stock
Retained Earnings
Treasury Stock (8,000 common shares)
$ 200,000
1,000,000
16,000
1,400,000
1,716,000
20,000
(LO 2, 3, 5, 7, 8), AP
GLS
During 2014 the corporation had these transactions and events pertaining to its stock-
holders' equity.
Feb.
Issued 20,000 shares of common stock for $160,000.
Purchased 4,000 shares of common stock for the treasury at a cost of
$16,000.
Declared a 9% cash dividend on preferred stock, payable December 15.
Declared a $0.30 per share cash dividend to common stockholders of
record on December 15, payable December 31, 2014.
Nov. 10
Nov. 15
Dec.
1
Problems: Set B 613
Paid the dividend declared on November 15.
Determined that net income for the year was $408,000. The market price of
the common stock on this date was $5 per share. Paid the dividend declared
on December 1.
Dec. 15
31
Instructions
(a) Journalize the transactions. (Include entries to close net income and dividends to
Retained Earnings.)

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