pter 11 Problems Help Save & Exi Chec At September 30, the end of Beijing Compan

Question

pter 11 Problems Help Save & Exi Chec At September 30, the end of Beijing Company's third quarter, the following stockholders' equity accounts are reported. $480,000o 90.000 tock.$12 Paid-in capital in excess of par valse, conmos stock Retained earnings In the fourth quarter, the following entries related to its equity are recorded Oct. 2 Retained Earnings Conmon Dividend Payable 70.000 Oct. 25 Conmon Dividend Payable 70,000 70.000 Oet. 31 Retained Earninga 63,000 Conmon Stock Dividend Distributable Paid-In Capital in Excess of Par Value, Common Stock 10.000 33,000 Nov.SCommon Stock Dividend Distributable 30,000 Common Stock, $12 Par Value 30.000 Dec.1 Meno-Change the title of the conmon atock aceount to reflect the nev par value of $4. Dec. 31 nco umnazy 260,000 Retained Earnings 260.000 Required: 2. Complete the following table showing the equity account balances at each indicated date 8838

Explanation / Answer

Note the value of stock has changed from $12 to $4

the value on Dec 1 was $510,000 @$12 so the number of shares $510,000 / $12 = 42500

The value changed to $4 therefore new common stock @ $4 = 42,500 X $4 = $170,000 and the excess of par value has been credited by the same account $510,000 - $170,000 = $340,000

Oct 2 Oct 25 Oct 31 Nov 5 Dec 1 Dec 31 Common Stock $480,000 $480,000 $480,000 $510,000 $170,000 $170,000 Common Stock dividend Distributable $70,000 0 $30,000 0 0 0 Paid in capital excess of par, common stock $90,000 $90,000 $123,000 $123,000 $463,000 $463,000 Retained Earnings $310,000 $310,000 $247,000 $247,000 $247,000 $507,000 Total Equity $950,000 $880,000 $880,000 $880,000 $880,000 $1,140,000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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