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WileyPLUS ? Secure ! https://edugen.wileyplus.com/edugen/lti/main.uni Apps For quick access, place your bookmarks here on the bookmarks bar. Import bookmarks now. Return to Blackboard WileyPLS eeso TOR PRINTER VERSION ASSIGNMENT RESOURCES Problem 11-2A The stockholders' equity accounts of Pina Colada Corp, on January 1, 2017, were as follows Preferred Stock (796, $100 par noncumulative, 4,150 shares authorized) Common Stock (S5 stated valus, 345,000 sharas authorizad) Paid-in Capital in Excess of Per Value -Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (4,150 common shares) $249,000 1,437 ,499 12,450 552,000 594,000 33.200 EExecie 11-4 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity Feb. 1 Iszued 4,540 shares of common stock for $27,240 Mar. 20 Purchased 1.450 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. Declared a $0.65 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017 Determined that net income for the year was $276,600. Paid the dividend declared on December 1. Dec. 31 Your answer is partially correct. Try again. Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the ordor displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round ansivers to O decimal places, e.g 5,275.) Date Account Titles and Explanation Debit Credit Paid-in Capital in Exoiss of Par reasury Stock Dividends Dividends Payable Dividends Payable Dividends Payatile income Summary Type here to search A 2:19 PM 4/18/2018

Explanation / Answer

Feb 1. Bank-----Dr 27240

To Common Stock                   22700

To Premium on Issue of Stock 4540

(Being 4540 shares of Rs.5 each issued at Rs.6 Each)

March 20 Treasury Stock-------Dr 10150

To Bank A/c 10150

(Being 1450 shares Brought back at Rs.7 Each)

Oct 1. Retained Earnings ------Dr 17430

To Dividend Payable on Preferred Stock 17430

(Being Dividend Payable on Rs 249000@ 7%)

Nov 1. Dividend Payble on Preffered Stock-----Dr 17430

To Bank 17430

(Being Dividend Paid)

Dec.1 Retained Earnings A/c------dr 223307.50

TO Dividned Payble on Common Stock 223307.50

(Being Dividend Payable on common Stock on {345000-1450}343550 Shares @ 0.65 each)

Dec 31 Dividend Payable on common stock -----Dr 223307.50

To Cash/Bank 223307.50

(Being Dividend Paid )

Dec 31. Cash ---Dr 276600

To Retained Earnings 276600

(Being Profit Earned fot the year)

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