The stockholders' equity accounts of Jacob Corporation on January 1, 20X1, contained the following balances: Preferred Stock (10%, $100 par value, 4,000 shares authorized) Issued and Outstanding, 1,300 Shares Paid-in Capital in Excess of Par Value-Preferred Common Stock ($20 par value, 23,000 shares authorized) Issued and Outstanding, 11,500 Shares Retained Earnings Total Stockholders' Equity $130,000 1,300 $131,300 230,000 400,200 $ 761,500 Transactions affecting stockholders' equity during 20X1 follow. DATE TRANSACTIONS June 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on July 15 to stockholders of record on June 30. July 15 Paid the dividend on preferred stock. Dec. 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1, and a cash dividend of $3.30 per share on common stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1. Make separate entries. 15 Declared a 5 percent common stock dividend to common stockholders of record on December 31, 20X1. The new shares are to be issued on January 15, 20X2. A fair value price of $30 per share is expected for the new shares of common stock. Dec. 31 Created an "appropriation of retained earnings for contingencies" of $53,000 because of the poor economic outlook. 31 The Income Summary account contained a debit balance of $16,500. The board had anticipated a net loss for the year and no quarterly deposits of estimated income taxes were made, so income taxes may be ignored. Required: 1. & 2. Record the above transactions in the general journal for 20X1 and post them to the Retained Earnings account (381) and record the January 1, 20X1, balance.
The stockholders' equity accounts of Jacob Corporation on January 1, 20X1, contained the following balances: Preferred Stock (10%, $100 par value, 4,000 shares authorized) Issued and Outstanding, 1,300 Shares Paid-in Capital in Excess of Par Value-Preferred Common Stock ($20 par value, 23,000 shares authorized) Issued and Outstanding, 11,500 Shares Retained Earnings Total Stockholders' Equity $130,000 1,300 $131,300 230,000 400,200 $ 761,500 Transactions affecting stockholders' equity during 20X1 follow. DATE TRANSACTIONS June 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on July 15 to stockholders of record on June 30. July 15 Paid the dividend on preferred stock. Dec. 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1, and a cash dividend of $3.30 per share on common stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1. Make separate entries. 15 Declared a 5 percent common stock dividend to common stockholders of record on December 31, 20X1. The new shares are to be issued on January 15, 20X2. A fair value price of $30 per share is expected for the new shares of common stock. Dec. 31 Created an "appropriation of retained earnings for contingencies" of $53,000 because of the poor economic outlook. 31 The Income Summary account contained a debit balance of $16,500. The board had anticipated a net loss for the year and no quarterly deposits of estimated income taxes were made, so income taxes may be ignored. Required: 1. & 2. Record the above transactions in the general journal for 20X1 and post them to the Retained Earnings account (381) and record the January 1, 20X1, balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Manji
Transcribed Image Text:The stockholders' equity accounts of Jacob Corporation on January 1, 20X1, contained the following balances:
Preferred Stock (10%, $100 par value, 4,000 shares authorized)
Issued and Outstanding, 1,300 Shares
Paid-in Capital in Excess of Par Value-Preferred
Common Stock ($20 par value, 23,000 shares authorized)
Issued and Outstanding, 11,500 Shares
Retained Earnings
Total Stockholders' Equity
$130,000
1,300 $131,300
230,000
400,200
$ 761,500
Transactions affecting stockholders' equity during 20X1 follow.
DATE TRANSACTIONS
June 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on July 15 to stockholders of record on June 30.
July 15 Paid the dividend on preferred stock.
Dec. 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on January 15, 20X2, to stockholders of record on
December 31, 20X1, and a cash dividend of $3.30 per share on common stock, payable on January 15, 20X2, to stockholders
of record on December 31, 20X1. Make separate entries.
15 Declared a 5 percent common stock dividend to common stockholders of record on December 31, 20X1. The new shares are to
be issued on January 15, 20X2. A fair value price of $30 per share is expected for the new shares of common stock.
Dec. 31 Created an "appropriation of retained earnings for contingencies" of $53,000 because of the poor economic outlook.
31 The Income Summary account contained a debit balance of $16,500. The board had anticipated a net loss for the year and
no quarterly deposits of estimated income taxes were made, so income taxes may be ignored.
Required:
1. & 2. Record the above transactions in the general journal for 20X1 and post them to the Retained Earnings account (381) and record
the January 1, 20X1, balance.
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