Question

Problem 13-03A a-c (Part Level Submission) (Video) The stockholders' equity accounts of Riverbed Corporation on January 1, 2020, were as follows. (b) Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use 35 for the posting reference.) in the previous part.) Preferred Stock (8%, $50 par, 10,500 shares authorized) Common Stock ($1 stated value, 2,100,000 shares authorized) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (10,000 common shares) $425,000 1,500,000 110,000 1,450,000 1,850,000 50,000 Debit Credit Balance Preferred Stock Date Explanation Ref. Belance ✓ Common Stock Date Explanation Ref. Balance During 2020, the corporation had the following transactions and events pertaining to its stockholders' equity. Debit Credit Balance Feb. 1 Issued 26,000 shares of common stock for $122,000. Apr. 14 Sold 5,700 shares of treasury stock-common for $33,700. Sept. 3 Issued 5,100 shares of common stock for a patent valued at $34,700. Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $5,700. Dec. 31 Determined that net income for the year was $480,000. J5 No dividends were declared during the year. (a) Balance Your answer is correct. Paid-in Capital in Excess of Par Preferred Stock Date Explanation Ref. Debit Credit Belance Paid-in Capital in Excess of Stated Value-Common Stock Date Explanation Ref. Debit Credit Balance Journalize the transactions and the closing entry for net income. (Record journal entries in the order pres automatically indented when amount is entered. Do not indent manually.) Balance Date Account Titles and Explanation Debit Credit Feb. 1 J Cash 122000| 15 Common Stock 26000 Paid-in Capital in Excess of Stated Value-Common 96000 Debit Credit Balance TApr. 14 TCash 33709 T Treasury Stock T 28500 Debit Credit Balance Paid-in Capital from Treasury Stock 5200 Paid-in Capital from Treasury Stock Date Explanation Ref. 5 Retained Earings Date Explanation Ref. Belance v 15 Treasury Stock Date Explanation Ref. Balance Sept. 3 y Patents Common Stock 5100 Paid-in Capital in Excess of Stated Value-Common 29600 Debit Credit Balance Nov. 10 Treasury Stock 35 Cash Cash 5700 Dec. 31 Income Summary 480000 M Click if you would like to Show Work for this question: Open Show Work Retained Earnings T 480000

Answer 1

b)	preferred stock
Date	Explanation	Debit	Credit	Balance
1-Jan	Balance			425,000
		Common stock
Date	Explanation	Debit	Credit	Balance
1-Jan	Balance			1,500,000
1-Feb			26000	1,526,000
3-Sep			5100	1,531,100
	paid in capital in excess of par value-PS
Date	Explanation	Debit	Credit	Balance
1-Jan	Balance			110,000
	paid in capital in excess of par value-CS
Date	Explanation	Debit	Credit	Balance
1-Jan	Balance			1,450,000
1-Feb			94000	1,544,000
3-Sep			29600	1,573,600
	paid in capital from Treasury stock
Date	Explanation	Debit	Credit	Balance
14-Apr			5200	5,200
	Retained earnings
Date	Explanation	Debit	Credit	Balance
1/1 bal	balance			1,850,000
31-Dec			480000	2,330,000
	Treasury stock
Date	Explanation	Debit	Credit	Balance
1/1 bal	balance			50,000
14-Apr			28500	21,500
1-Nov		5,700		27,200