The following stockholders’ equity accounts, are in the ledger of Ehrlich Corporation at January 1, 2021. Common Stock ($8 par value) $2,600,000 Paid-in Capital in Excess of Par—Preferred Stock 270,000 Paid-in Capital in Excess of Par Value—Common Stock 750,000 Preferred Stock (8%, $200 par) 900,000 Retained Earnings 2,340,000 Instructions Prepare the journal entry to close net income for the year to retained earnings. Net income was $400,000. Answer the following questions: How many shares of common stock are issued? ________________ 4. How many shares of preferred stock are issued?________________ 5. What is the preferred dividend per share?______________________ 6. Prepare the stockholders’ equity section of the balance sheet (in the proper order) at December 31, 2021. EHRLICH CORPORATION Partial Balance Sheet December 31, 202

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following stockholders’ equity accounts, are in the ledger of Ehrlich Corporation at January 1, 2021.

           Common Stock ($8 par value)                                                                           $2,600,000

           Paid-in Capital in Excess of Par—Preferred Stock                                                270,000

           Paid-in Capital in Excess of Par Value—Common Stock                                      750,000

           Preferred Stock (8%, $200 par)                                                                              900,000

           Retained Earnings                                                                                               2,340,000

                                                                        

          

Instructions

  1. Prepare the journal entry to close net income for the year to retained earnings. Net income was $400,000.
  2. Answer the following questions:
  3. How many shares of common stock are issued? ________________

 

4. How many shares of preferred stock are issued?________________

 

5. What is the preferred dividend per share?______________________

6. Prepare the stockholders’ equity section of the balance sheet (in the proper order) at December 31, 2021.

 

EHRLICH CORPORATION

Partial Balance Sheet

December 31, 202

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