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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education