could you please help me with the second part of the question.....first part is

Question

could you please help me with the second part of the question.....first part is okay

Foley Corporation has the following capital structure at the beginning of the year:

(a)

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3.

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SHOW LIST OF ACCOUNTS

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(b)

FOLEY CORPORATION
Balance Sheet (Partial)

could you please help me with the second part of the question.....first part is okay

Foley Corporation has the following capital structure at the beginning of the year:

4% Preferred stock, $50 par value, 20,000 shares authorized, 5,000 shares issued and outstanding $   250,000 Common stock, $10 par value, 60,000 shares authorized, 38,000 shares issued and outstanding 380,000 Paid-in capital in excess of par 108,000 Total paid-in capital 738,000 Retained earnings 450,000 Total stockholders' equity $1,188,000

Explanation / Answer

a)

b)

Recor ding the journal entries: Dec Account title and equation Debit($) Credit($) 1 Retained earnings         75,000 Commonstock holders         65,000 Preferenceholders         10,000 (To record the dividend declared and paid) 2 Retained earnings       1,19,700 Stock dividend payable       1,19,700 38000*15%*$21 (To record the issue of stock dividend) 3 Net income       1,32,000                Plant expansion         74,000                Retained earnings         58,000 (To record theclosing entry)

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