Question

Flint Company reported the following amounts in the stockholders' equity section of its December 31, 2016, balance sheet Preferred stock, 9%. $100 par (10,000 shares authorized, 1.800 shares issued) $180,000 Common stock. $5 par (101,500 shares authorized. 20,300 shares issued) Additional paid-in capital 130,000 Retained earnings 486,000 Total $897.500 During 2017, Flint took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2016 59 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016. 2. Purchased 1.800 shares of its own outstanding common stock for $41 per share. Flint uses the cost method. 3. Reissued 700 treasury shares for land valued at $31.400. 4. Issued 510 shares of preferred stock at $104 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $45 per share. 6. Issued the stock dividend. 7. Declared the annual 2017 59 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018 Part 1 Prepare journal entries to record the transactions described above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit 16,200. 40,600 1800 shares &$9 div 20,300 shoes $2 div 5200+40,600 56,500 73,800 No. Account Titles and Explanation 1. Dividends Payable- Pref Stk Dividends Payable-comstk I cash 2 Treasury Stock I cash 3 Land I Treasury stock. paid in cap from treasury stk. & Cash 1800 shares $41 Paire 73,800 31,400 25,700 value of land 700 shares $41 Price 31,400-2700 2700 53040 510 sharesx $104 market price

Need help figuring out Retained earnings in part 2 on the balance sheet.

please show work

Answer 1

Flint Company Stockholders Equity section of Balance Sheet As of Dec 31, 2017 Calculation Capital Stock Preferred Stock 231,000 Common Stock 111,100 Total Capital Stock Additional Paid in capital 342,100 211,540 Total Paid in Capital 553,640 Retained Earnings 669,570 =486,000+333,000-86,400-63,030 1,223,210 (From TAccounts) Total Paid in Capital & Retained Earnings (45,100) Less: Treasury Stock Total Stockholders Equity 1,178,110

Flint Company TAccounts Date Debit Date Credit Date Debit Date Credit Debit Credit Date Date Additional Paid in Capital Common Stock Preferred Stock $ 101,500 $ 180,000 Op bal Op bal Op bal 130,000 9,600 51,000 6. 2,700 4 2,040 76,800 $ 231,000 $ 111,100 Bal. Bal. Bal. 211,540 Retained Earnings Common Stock Dividend Distributable Treasury Stock $ 86,400 Op bal $ 63,030 Net Income $ 333,000 $ 486,000 $ 73,800 2$ 5 3 28,700 9,600 9,600 $ 45,100 $ 669,570 Bal. Bal. Bal. %24

Flint Company Debit Credit Calculation No. Account 1 Dividends Payable - Preferred Stock Dividends Payable - Common Stock =1,800*9 16,200 =20,300*2 40,600 Cash 56,800 Treasury Stock =1,800*41 73,800 Cash 73,800 Land 3 31,400 Treasury Stock 28,700 =700*41 Paid in Capital from Sale of Treasury Stock 2,700 Cash =510*104 4 53,040 Preferred Stock 51,000 =510*100 Paid in Capital in Excess of Par-Preferred Stock 2,040 Retained Earnings 86,400 =1,920*45 Common Stock Dividend Distributable 9,600 =1,920*5 Paid in Capital in Excess of Par-Common Stock Wkgs below for 1,730 shares 76,800 Common Stock Dividend Distributable б 9,600 Common Stock 9,600 Retained Earnings 63,030 Dividends Payable - Preferred Stock 20,790 =(1,800+510)*9 Dividends Payable - Common Stock 42,240 Workings below Workings Common Dividend Declared Opening Shares Treasury Stock purchased 20,300 (1,800) Treasury Stock reissued 700 Subtotal 19,200 10% Stock Dividend =19,200*10% 1,920 Number of Common Shares O/s 21,120 Cash Dividend per share =21,120*2 Common Dividend Declared 42,240 Dividend is paid on 0/s common shares excluding treasury shares Note 2.