Accounting Question help for ACCT 221?
Problem 14-2A |
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The stockholders’ equity accounts of Falk Company at January 1, 2012, are as follows.
Preferred Stock, 6%, $50 par |
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$625,000 |
Common Stock, $4 par |
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636,000 |
Paid-in Capital in Excess of Par—Preferred Stock |
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187,300 |
Paid-in Capital in Excess of Par—Common Stock |
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306,900 |
Retained Earnings |
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798,400 |
There were no dividends in arrears on preferred stock. During 2012, the company had the following transactions and events.
July 1 |
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Declared a $0.7 cash dividend on common stock. |
Aug. 1 |
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Discovered $27,400 understatement of 2011 depreciation on equipment. Ignore income taxes. |
Sept. 1 |
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Paid the cash dividend declared on July 1. |
Dec. 1 |
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Declared a 14% stock dividend on common stock when the market value of the stock was $19 per share. |
15 |
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Declared a 6% cash dividend on preferred stock payable January 15, 2013. |
31 |
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Determined that net income for the year was $392,700. |
31 |
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Recognized a $218,500 restriction of retained earnings for plant expansion. |
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(a) |
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Journalize the transactions, events, and closing entry.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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