Journalize the transactions. (Include entries to close net income and dividends

Question

Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

The stockholders' equity accounts of Grouper Corp. on January 1, 2017, were as follows. Preferred Stock (890, $100 par noncumulative, 4,600 shares authorized) Common Stock ($4 stated value, 320,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stoclk Retained Earnings Treasury Stock (4,600 common shares) $276,000 1,066,666 13,800 512,000 691,500 36,800 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 4,580 shares of common stock for $27,480. Mar. 20 Purchased 1,650 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 8% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.60 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017 Dec. 31 Determined that net income for the year was $276,400. Paid the dividend declared on December 1.

Explanation / Answer

Journal entry :

Date Account & explanation debit credit Feb 1 Cash 27480 Common Stock (4580*4) 18320    Paid in capital in excess of stated value-Common Stock 9160 (To record common Stock issue) Mar 20 Treasury Stock (1650*7) 11550 Cash 11550 (To record treasury stock repurchased) Oct 1 Preferred Cash dividend (276000*8%) 22080 Cash dividend payable 22080 (To record dividend declared) Nov 1 Cash dividend payable 22080 Cash 22080 (To record dividend paid) Dec 1 Common Cash dividend 158999    Cash dividend payable 158999 (To record dividend declared) Dec 31 Cash dividend payable 158999 Cash 158999 (To record dividend paid) Dec 31 Income summary 276400 Retained earnings 276400 (To close net income) Dec 31 Retained earnings 170039    Preferred cash dividend 11040 Common Cash dividend 158999 (To close dividend)

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.