Exercise 15-18 (Part Level Submission) Kingbird Company reported the following a

Question

Exercise 15-18 (Part Level Submission) Kingbird Company reported the following amounts in the stockholders' equity section of its December 31, 2016, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 2,200 shares issued) $220,000 Common stock, $5 par (100,000 shares authorized, 20,000 shares issued) Additional paid-in capital Retained earnings 100,000 135,000 436,000 $891,000 Total During 2017, Kingbird took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016. 2. Purchased 1,900 shares of its own outstanding common stock for $39 per share. Kingbird uses the cost method. 3. Reissued 700 treasury shares for land valued at $29,500. 4. Issued 450 shares of preferred stock at $105 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $46 per share. 6. Issued the stock dividend. 7. Declared the annual 2017 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018.

Explanation / Answer

No. Account Titles & Explanations Debit Credit 1) Dividends payable-preferred stock 22000 Dividends payable - common stock 40,000 Cash 62,000 2) Treasury stock 74100 cash (1900*39) 74,100 3) Land 29,500 Treausry stock (700*39) 27300 Paid in capital in excess -TS 2,200 4) Cash 47250 Preferred Stock 45000 Paid in capital in excess of par (450*5) 2250 5) Retained earnings (1880*46) 86480 Common stock dividend distributable (1880*5) 9400 paid in capita in excess of par -CS 77080 (20,000-1900+700)*10% 6) Common stock dividend distributable 9,400 Common Stock 9,400 7) retained earnings 67860 Dividend payable- common stock 41,360 Dividends payable -preferred stock 26,500 (20680*2)+(2650*10)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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