The stockholders' equity accounts of Falk Company at January 1, 201 - 10380

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The stockholders' equity accounts of Falk Company at January 1, 2012, are as follows.

 

 

 

Preferred Stock, 6%, $50 par

$560,000

Common Stock, $3 par

491,400

Paid-in Capital in Excess of Par Value-Preferred Stock

190,100

Paid-in Capital in Excess of Par Value-Common Stock

293,400

Retained Earnings

752,600

 

There were no dividends in arrears on preferred stock. During 2012, the company had the following transactions and events.

 

July 1

 

Declared a $0.50 cash dividend on common stock.

Aug. 1

 

Discovered $25,000 understatement of 2011 depreciation. Ignore income taxes.

Sept. 1

 

Paid the cash dividend declared on July 1.

Dec. 1

 

Declared a 14% stock dividend on common stock when the market value of the stock was $16 per share.

Dec. 15

 

Declared a 6% cash dividend on preferred stock payable January 15, 2013.

Dec. 31

 

Determined that net income for the year was $366,200.

Dec. 31

 

Recognized a $206,800 restriction of retained earnings for plant expansion.

 

Journalize the transactions, events, and closing entries. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2. If there is no transaction, enter No entry as the account and 0 for the amount.)

 

Enter the beginning balances in the accounts, and post to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (If answer is zero, please enter 0. Do not leave any fields blank.)

 

Complete the retained earnings statement for the year. (List amounts from largest to smallest e.g. 10, 5, 3, 2.)

 

 

 

 

 

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