The stockholders\' equity accounts of Sigma Corporation on January 1, 2012, were
ID: 2373409 • Letter: T
Question
The stockholders' equity accounts of Sigma Corporation on January 1, 2012, were as follows.
During 2012 the corporation had these transactions and events pertaining to its stockholders' equity.
Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Use T accounts.) (If answer is zero please enter 0, do not leave any fields blank.)
1/1
1/1
1/1
1/1
Common Stock
Paid-in Cap. in Exc. of Stated Value - Comm. Stock
2/1
2/1
2/1
2/1
Retained Earnings
Treasury Stock - Common
12/31
12/31
3/20
3/20
Cash Dividends
12/1
12/31
Explanation / Answer
Feb. 1 Issued 5,000 shares of common stock for $30,000.
2/1 Cash Dr 30000
Common Stock ($5) Cr 25000
Paid-in Cap in Excess of Stated Value - Common Stock Cr 5000
Mar. 20 Purchased 1,000 additional shares of common treasury stock at $7 per share
3/20 Treasury Stock - Common Dr 7000
Cash Cr 7000
Oct. 1 Declared a 8% cash dividend on preferred stock, payable November 1.
1/10 Retained Earnings Dr 40,000
Dividend Payable Cr 40000
(8%*100*5000 = 40000)
Nov. 1 Paid the dividend declared on October 1.
1/11 Div Payable Dr 40000
Cash Cr 40000
Dec. 1 Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2012.
1/12 Retained Earnings Dr 102,000
Dividend Payable Cr 102,000
($0.50*((1000000/5)+5000-1000) =$102,000)
Dec. 31 Determined that net income for the year was $280,000. Paid the dividend declared on December 1.
31/12 Net Income Dr 280,000
Retained earnings Cr 280,000
31/12 Div Payable Dr 102,000
Cash Cr 102,000
Pref Stock
Dr Cr
---------------------------------------------------
1/1 300,000
12/31 Bal 300,000
Paid-in Cap. in Excess of Par Value - Pref. Stock
Dr Cr
------------------------------------------------
1/1 15,000
12/31 Bal 15,000
Common Stock
Dr Cr
-------------------------------------------------
1/1 1000,000
1/2 25,000
12/31 Bal 1025,000
Paid-in Cap. in Exc. of Stated Value - Comm. Stock
Dr Cr
---------------------------------------------------
1/1 480,000
1/2 5,000
12/31 Bal 485,000
Retained Earnings
Dr Cr
---------------------------------------------
1/1 688,000
12/31 142,000 280,000
12/31 Bal 826,000
Treasury Stock - Common
Dr Cr
---------------------------------------------
1/1 40,000
3/20 7,000
12/31 Bal 47,000
Cash Dividends
Dr Cr
------------------------------------------
10/1 40,000
12/1 102,000
12/31 Bal 142,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.