The general ledger of Pukalani Corporation, a publicly traded company, contained the following shareholders' equity accounts in 2018: January 1 December 31 Preferred shares (10,700 and 19,200 shares issued, respectively) $535,000 Common shares (332,000 and 379,000 shares issued, respectively) 2,656,000 Stock dividends distributable Retained earnings 0 2,932,000 $960,000 3,596,000 416,900 3,293,100 A review of the accounting records for the year ended December 31, 2018, reveals the following information: 1. On January 1, 8,500 additional $5 noncumulative preferred shares were issued for $50 each. An unlimited number are authorized. 2. On October 1, 47,000 common shares were sold for cash at $20 per share. An unlimited number are authorized. 3. The annual preferred shareholders' cash dividend was declared and paid during the year. 4. On December 31, a 5% stock dividend was declared on common shares when the share price was $22. The stock dividend is distributable on January 20. 5. Net income for the year was $874,000. 6. On December 31, the board of directors authorized a $528,000 restriction on retained earnings for a plant expansion.
The general ledger of Pukalani Corporation, a publicly traded company, contained the following shareholders' equity accounts in 2018: January 1 December 31 Preferred shares (10,700 and 19,200 shares issued, respectively) $535,000 Common shares (332,000 and 379,000 shares issued, respectively) 2,656,000 Stock dividends distributable Retained earnings 0 2,932,000 $960,000 3,596,000 416,900 3,293,100 A review of the accounting records for the year ended December 31, 2018, reveals the following information: 1. On January 1, 8,500 additional $5 noncumulative preferred shares were issued for $50 each. An unlimited number are authorized. 2. On October 1, 47,000 common shares were sold for cash at $20 per share. An unlimited number are authorized. 3. The annual preferred shareholders' cash dividend was declared and paid during the year. 4. On December 31, a 5% stock dividend was declared on common shares when the share price was $22. The stock dividend is distributable on January 20. 5. Net income for the year was $874,000. 6. On December 31, the board of directors authorized a $528,000 restriction on retained earnings for a plant expansion.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The general ledger of Pukalani Corporation, a publicly traded company, contained the following shareholders' equity accounts in 2018:
January 1 December 31
Preferred shares (10,700 and 19,200 shares issued, respectively) $535,000
Common shares (332,000 and 379,000 shares issued, respectively) 2,656,000
Stock dividends distributable
Retained earnings
0
2,932,000
$960,000
3,596,000
416,900
3,293,100
A review of the accounting records for the year ended December 31, 2018, reveals the following information:
1. On January 1, 8,500 additional $5 noncumulative preferred shares were issued for $50 each. An unlimited number are authorized.
2. On October 1, 47,000 common shares were sold for cash at $20 per share. An unlimited number are authorized.
3. The annual preferred shareholders' cash dividend was declared and paid during the year.
4. On December 31, a 5% stock dividend was declared on common shares when the share price was $22. The stock dividend is
distributable on January 20.
5. Net income for the year was $874,000.
6. On December 31, the board of directors authorized a $528,000 restriction on retained earnings for a plant expansion.
Transcribed Image Text:Reproduce the Preferred Shares, Common Shares, Stock Dividends Distributable, and Retained Earnings general ledger accounts for
the year. (Record entries in the order presented in the problem.)
During year Cash dividend
Dec. 31 Stock dividend declared
Dec. 31 CE Dividends declared
Dec. 31 Balance
Dec. 31 CE
Preferred Shares
Jan. 1 Balance
Jan. 1 Issue
Dec. 31 Balance
Common Shares
Jan. 1 Balance
Oct. 1 Issue
Dec. 31 Balance
Dividends Declared
Stock Dividends Distributable
During year CE Dividends declared
Retained Earnings
Jan. 1 Balance
During year Cash dividend
Dec. 31 CE Net income
535000
425000
960000
2656000
940000
3596000
416900
2932000
3293100
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