The stockholders’ equity accounts of Flounder Corp. on January 1, 2017, were as

Question

The stockholders’ equity accounts of Flounder Corp. on January 1, 2017, were as follows.
Preferred Stock (7%, $100 par noncumulative, 4,500 shares authorized) $270,000 Common Stock ($5 stated value, 315,000 shares authorized) 1,312,499 Paid-in Capital in Excess of Par Value—Preferred Stock 13,500 Paid-in Capital in Excess of Stated Value—Common Stock 504,000 Retained Earnings 693,000 Treasury Stock (4,500 common shares) 36,000
During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity.
Feb. 1 Issued 5,310 shares of common stock for $31,860. Mar. 20 Purchased 2,000 additional shares of common treasury stock at $8 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. 1 Declared a $0.70 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Dec. 31 Determined that net income for the year was $285,000. Paid the dividend declared on December 1.

Explanation / Answer

Cash dividends on Dec. 1 = (262500+5310-4500-2000)*0.7= 182917

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