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The post-closing trial balance of Storey Corporation at December 31, 2020, contains the following stockholders' equity accounts: Stockholders' Equity Section Preferred stock (15,000 shares issued) Common Stock (250,000 shares issued) Paid-in capital in excess of par-Preferred stock Paid-in capital in excess of par-Common stock $ 750,000 2,500,000 250,000 400,000 250,000 1,042,000 Common stock dividends distributable Retained earnings A review of the accounting records reveals the following: • Preferred stock is $50 par, 6%, and cumulative; 15,000 shares have been outstanding since January 1, 2019. • Authorized stock is 20,000 shares of preferred, and 500,000 shares of $10 par value common. • The January 1 balance in Retained Earnings was $1,170,000. Net income for the year was $585,000. The following transactions also occurred during the year: July 1 20,000 shares of common stock were issued for cash at $16 per share. Oct 1 A cash dividend of $250,000 was declared and properly allocated to preferred and common stock on October 1. The payment date was determined to be Oct 30. Dec 31 A 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16. Requirements: 1. Journalize the transactions and the closing entries for net income.

The post-closing trial balance of Storey Corporation at December 31, 2020, contains the following stockholders' equity accounts: Stockholders' Equity Section Preferred stock (15,000 shares issued) Common Stock (250,000 shares issued) Paid-in capital in excess of par-Preferred stock Paid-in capital in excess of par-Common stock $ 750,000 2,500,000 250,000 400,000 250,000 1,042,000 Common stock dividends distributable Retained earnings A review of the accounting records reveals the following: • Preferred stock is $50 par, 6%, and cumulative; 15,000 shares have been outstanding since January 1, 2019. • Authorized stock is 20,000 shares of preferred, and 500,000 shares of $10 par value common. • The January 1 balance in Retained Earnings was $1,170,000. Net income for the year was $585,000. The following transactions also occurred during the year: July 1 20,000 shares of common stock were issued for cash at $16 per share. Oct 1 A cash dividend of $250,000 was declared and properly allocated to preferred and common stock on October 1. The payment date was determined to be Oct 30. Dec 31 A 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16. Requirements: 1. Journalize the transactions and the closing entries for net income.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 19P: Anoka Company reported the following selected items in the shareholders equity section of its...
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The post-closing trial balance of Storey Corporation at December 31, 2020, contains the following stockholders' equity accounts: Stockholders' Equity Section Preferred stock (15,000 shares issued) Common Stock (250,000 shares issued) Paid-in capital in excess of par-Preferred stock Paid-in capital in excess of par-Common stock $ 750,000 2,500,000 250,000 400,000 250,000 1,042,000 Common stock dividends distributable Retained earnings A review of the accounting records reveals the following: • Preferred stock is $50 par, 6%, and cumulative; 15,000 shares have been outstanding since January 1, 2019. • Authorized stock is 20,000 shares of preferred, and 500,000 shares of $10 par value common. • The January 1 balance in Retained Earnings was $1,170,000. • Net income for the year was $585,000. The following transactions also occurred during the year: July 1 20,000 shares of common stock were issued for cash at $16 per share. Oct 1 A cash dividend of $250,000 was declared and properly allocated to preferred and common stock on October 1. The payment date was determined to be Oct 30. Dec 31 A 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16. Requirements: 1. Journalize the transactions and the closing entries for net income.
Transcribed Image Text:The post-closing trial balance of Storey Corporation at December 31, 2020, contains the following stockholders' equity accounts: Stockholders' Equity Section Preferred stock (15,000 shares issued) Common Stock (250,000 shares issued) Paid-in capital in excess of par-Preferred stock Paid-in capital in excess of par-Common stock $ 750,000 2,500,000 250,000 400,000 250,000 1,042,000 Common stock dividends distributable Retained earnings A review of the accounting records reveals the following: • Preferred stock is $50 par, 6%, and cumulative; 15,000 shares have been outstanding since January 1, 2019. • Authorized stock is 20,000 shares of preferred, and 500,000 shares of $10 par value common. • The January 1 balance in Retained Earnings was $1,170,000. • Net income for the year was $585,000. The following transactions also occurred during the year: July 1 20,000 shares of common stock were issued for cash at $16 per share. Oct 1 A cash dividend of $250,000 was declared and properly allocated to preferred and common stock on October 1. The payment date was determined to be Oct 30. Dec 31 A 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $16. Requirements: 1. Journalize the transactions and the closing entries for net income.
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