Valencia Jewelry Company reported the following summarized balance sheet at Dece
ID: 2570841 • Letter: V
Question
Valencia Jewelry Company reported the following summarized balance sheet at December 31, 2016 (Click the icon to view the statement.) During 2017, Valencia Jewelry completed these transactions that affected stockholders' equity: (Click the icon to view the transactions.) Requirements 1. Journalize Valencia Jewelry's transactions. Explanations are not required. 2. Report Valencia Jewelry's stockholders' equity at December 31, 2017. Net income for 2017 was $22,000 Requirement 1. Journalize Valencia Jewelry's transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Feb 13: Issued 5,100 shares of common stock for $10 per share Data Table Journal Entry Date Accounts Debit Credit Feb 13 Assets $ 35,000 121,600 $ 156,600 Current assets Property and equipment, net Total assets Liabilities and Equity Liabilities $ 37,300 Stockholders' equity S0.70 cumulative preferred stock, $20 par, 900 shares issued Common stock, $9 par, 6,000 shares issued Paid-in capital in excess of par-common Retained earnings Total liabilities and equity 18,000 54,000 17,300 30,000 $ 156,600Explanation / Answer
Journal Entries Date Accounting titles & Explanations Debit Credit 13-Feb cash 51000 common stock (5,100*9) 45900 paid in capital in excess of par (5100*1) 5100 7-Jun Retained earnings 630 dividends payable (.70*900) 630 24-Jun Dividends payable 630 cash 630 9-Aug Retained earnings 33300 common stock div distributable 19980 paid in capital in excess of par 13320 (5100+6000)*20%=2,220 26-Oct treasury stock 11900 cash (700*17) 11,900 20-Nov cash (500*19) 9500 treasury stock (500*17) 8500 paid in capital in excess of par (500*2) 1000 31-Dec Retained earnings 3,280 dividends payable 3,280 (5100+6000+2220-700+500)*.25
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