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FOR PRINTER VERSION BACK Problem 14-02A (Part Level The post-doing t halace of Shandan Carbon December 31, 2020, Preferred St
Your answer is correct. Reproduce the Retained Earnings account for 2020. (Let me in orderpreted in Retained Earnings Sept. 1
(b) Your answer is partially correct. Try again. Prepare a stockholders equity section at December 31, 2020. (Enter accou on
Capital Stock Preferred Stock Common Stock J 2,590,000 Common Stock Dividends Distributable T 259,000 2,849,000 3,649,000 T T
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Sheridan
Retained Earnings Account
Date Account Debit $ Date Account Credit $
1-Sep Prior Period Adjustment         60,900.00 1-Jan Opening Balance    1,120,000.00
31-Dec Cash Dividend       259,000.00 31-Dec Net Income       588,000.00
31-Dec Stock Dividend       466,200.00
31-Dec Closing Balance       921,900.00
1,708,000.00 1,708,000.00
1-Jan Opening Balance       921,900.00
Stockholder's Equity Amount $ Amount $
Paid in capital
Capital Stock
Preferred Stock       800,000.00
Common Stock    2,590,000.00
Common Stock Dividends Distributable       259,000.00
   2,849,000.00
Total Capital Stock    3,649,000.00
Additional Paid in Capital
Paid in Capital in excess of par- Preferred stock       259,000.00
Paid in Capital in excess of par- Common stock       410,000.00
Total Additional Paid in Capital       669,000.00
Total Paid in Capital    4,318,000.00
Retained Earnings       921,900.00
Less: restricted for plan expansion      (193,000.00)
Total Stockholder's Equity 5,046,900.00
Workings
Stock Dividend Note
Closing Common Stock (issued) 259,000.00 A
Closing before Stock Dividend 259,000.00 D
10 % stock dividend      25,900.00 B=A*10%
Market price per share             18.00 C
Stock Dividend Value 466,200.00 D=B*C
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