The stockholders\' equity accounts of Pina Colada Corp. on January 1, 2017, were

Question

The stockholders' equity accounts of Pina Colada Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) Common Stock ($4 stated value, 300,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (5,000 common shares) $300,000 1,000,000 15,000 480,000 694,000 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 5,000 shares of common stock for $30,000. Mar. 20 Purchased 1,000 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a so.65 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017 Dec. 31 Paid the dividend declared on December 1. balance in Retained (b) Record he 2017 transactions in the tabular summary. s 275 cransaction sauses a decrease in Assets, Liabilities or

Explanation / Answer

Answer a & b. Assets = Liabilities + Stockholders' Equity Paid-in Capital Retained Earnings Cash = Div. Pay. + Common Stock + PIC in Excess of Stated Value Com. + Pref. Stock + PIC in Excess of Stated Value Pref. - Treasury Stock + Revenue - Expenses - Dividend Bal.    1,000,000.00      480,000.00    300,000.00          15,000.00    40,000.00 1-Feb        30,000.00          20,000.00         10,000.00 20-Mar        (7,000.00)       7,000.00 1-Oct        21,000.00      21,000.00 1-Nov     (21,000.00)     (21,000.00) 1-Dec     161,850.00    161,850.00 31-Dec (161,850.00) (161,850.00)

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