Question

The general ledger of Golden Corporation, a publicly traded company, contained the following shareholders' equity accounts in 2018: January 1 December 31 Preferred shares (9,600 and 21,200 shares issued, respectively) $480,000 $1,060,000 Common shares (311,000 and 386,000 shares issued, respectively) 2,488,000 3,988,000 Stock dividends distributable 424,600 Retained earnings 2,716,000 3,026,400 A review of the accounting records for the year ended December 31, 2018, reveals the following information: 1. On January 1, 11,600 additional $5 noncumulative preferred shares were issued for $50 each. An unlimited number are authorized. 2. On October 1, 75,000 common shares were sold for cash at $20 per share. An unlimited number are authorized. 3. The annual preferred shareholders' cash dividend was declared and paid during the year. 4. On December 31, a 5% stock dividend was declared on common shares when the share price was $22. The stock dividend is distributable on January 20. 5. Net income for the year was $841,000. 6. On December 31, the board of directors authorized a $524,000 restriction on retained earnings for a plant expansion.

Please fill in the red boxes, above is the word bank we are provided for the dates and accounts

Answer 1

Golden Corporation T Accounts Date Credit Debit Date Preferred Shares Jan 1. Balance Jan 1. Issue $ 480,000 $ 580,000 $ 1,060,000 Dec 31.Balance Common Shares Jan 1. Balance Oct 1. Issue $ 2,488,000 $1,500,000 $3,988,000 Dec 31.Balance Dividends Declared $ 106,000 During year CE dividends declared $424,600 Dec 31 CE dividends declared During year cash dividends Dec 31 stock dividend declared $ 106,000 $ 424,600 Dec 31.Balance Stock Dividends Distributable Dec 31 stock dividend declared $424,600 $ 424,600 Dec 31.Balance Retained Earnings $106,000 Jan 1. Balance $424,600 Dec 31 CE Net Income During year CE dividends declared Dec 31 CE dividends declared $2,716,000 $ 841,000 Dec 31.Balance $3,026,400