Question Help Starborn Manufacturing Co completed the following transactions dur

Question

Question Help Starborn Manufacturing Co completed the following transactions during 2018: (Click the icon to view the transactions.) Read the requirements Jan. 16. Declared a cash dividend on the 5% S95 par non u ulative preferred stock 1,000 shares outstanding Declared a $0.50 per sha shares of $10 par value common stock outstanding. The date of record is January 31, and the payment date is February 15 dividend on the 8500 Date Accounts and Explanation Debit Credit Jan. 16 Choose from any list or enter any number in the input fields and then click Check Answer parts Clear All Check Answer

Explanation / Answer

1.

The given transactions will be recorded as follows:

2.

Prepare the stockholders' equity section of the balance sheet as follows:

Date Accounts and Explanation Debit Credit Jan. 16 Retained Earnings [(1,000x$95x5%)+(85,000x$0.50)] 47250       Dividends Payable 47250 Feb. 15 Dividends Payable 47250       Cash 47250 Jun. 10 No journal entry required for stock-split. Jul. 30 Retained Earnings (85000x2x40%x$5) 340000       Stock Dividends Distributable 340000 Aug. 15 Stock Dividends Distributable 340000       Common Stock 340000 Oct. 26 Treasury Stock (5,400x$11) 59400       Cash 59400 Nov. 8 Cash (2,700x$13) 35100       Paid-in Capital - Treasury Stock (2,700 x $2) 5400       Treasury Stock (2,700x$11) 29700 Nov. 30 Cash (1,600 x $7) 11200 Paid-in Capital - Treasury Stock 5400 Retained Earnings (17,600-11,200-5,400) 1000       Treasury Stock 17600

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