Please see the picture below for relevant problem information. -Enter the beginning balances in the accounts and post the journal entries to the stockholders’ equity accounts. - The stockholders' equity accounts of Whispering Winds Corp. on January 1, 2017, were as follows.Preferred Stock (7%, $100 par noncumulative, 4,650 shares authorized)$279,000Common Stock ($5 stated value, 306,000 shares authorized)1,274,999Paid-in Capital in Excess of Par Value-Preferred Stock13,950Paid-in Capital in Excess of Stated Value-Common Stock489,600Retained Earnings699,500Treasury Stock (4,650 common shares)37,200During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity.1Issued 4,860 shares of common stock for $29,160.Feb.Mar. 20Purchased 1,300 additional shares of common treasury stock at $8 per share.1Declared a 7% cash dividend on preferred stock, payable November 1.Oct.1Paid the dividend declared on October 1.Nov.Dec.Declared a $0.70 per share cash dividend to common stockholders of record on December 15, payable December 31,2017.31Determined that net income for the year was $277,400. Paid the dividend declared on December 1.Dec.

Date Account Titles and Explanation Debit Credit Feb'1 Cash $ 29,160 Common Stock…

Preferred Stock (7%, $100 par noncumulative, 4,650 shares authorized) $279,000 Common Stock ($5 stated value, 306,000 shares authorized) 1,274,999 Paid-in Capital in Excess of Par Value-Preferred Stock 13,950 Paid-in Capital in Excess of Stated Value-Common Stock 489,600 Retained Earnings 699,500 37,200 Treasury Stock (4,650 common shares)

Preferred Stock (7%, $100 par noncumulative, 4,650 shares authorized) $279,000 Common Stock ($5 stated value, 306,000 shares authorized) 1,274,999 Paid-in Capital in Excess of Par Value-Preferred Stock 13,950 Paid-in Capital in Excess of Stated Value-Common Stock 489,600 Retained Earnings 699,500 37,200 Treasury Stock (4,650 common shares)

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

Please see the picture below for relevant problem information.

-Enter the beginning balances in the accounts and post the journal entries to the stockholders’ equity accounts.

The stockholders' equity accounts of Whispering Winds Corp. on January 1, 2017, were as follows.
Preferred Stock (7%, $100 par noncumulative, 4,650 shares authorized)
$279,000
Common Stock ($5 stated value, 306,000 shares authorized)
1,274,999
Paid-in Capital in Excess of Par Value-Preferred Stock
13,950
Paid-in Capital in Excess of Stated Value-Common Stock
489,600
Retained Earnings
699,500
Treasury Stock (4,650 common shares)
37,200
During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity.
1
Issued 4,860 shares of common stock for $29,160.
Feb.
Mar. 20
Purchased 1,300 additional shares of common treasury stock at $8 per share.
1
Declared a 7% cash dividend on preferred stock, payable November 1.
Oct.
1
Paid the dividend declared on October 1.
Nov.
Dec.
Declared a $0.70 per share cash dividend to common stockholders of record on December 15, payable December 31,
2017.
31
Determined that net income for the year was $277,400. Paid the dividend declared on December 1.
Dec.

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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