Question

Ch 11 -2 Activities 1. The following accounts appear in the ledger of Bradley, Inc., after the books are closed at December 31, 2010 Common Stock, $1 par value, 800,000 shares authorized, 500,000 shares issued $500,000 Common Stock Dividends Distributable 80,000 Paid-in Capital in Excess of Par Value-Common Stock 950,000 Preferred Stock, $100 par value, 8%, 10,000 shares authorized; 3,000 shares issued 300,000 Retained Earnings 550.000 Treasury Stock (10,000 common shares) 40.000 Paid-in Capital in Excess of Par Value-Preferred Stock 75,000 Instructions Prepare the stockholders' equity section at December 31, 2010, assuming that part of retained earnings is restricted for plant expansion in the amount of $200,000. The stockholders' equity section of Fleming Corporation at December 31, 2009, included the following: 6% preferred stock, $100 par value, cumulative, 15,000 shares authorized, 10,000 shares issued and outstanding.... $1,000,000 Common stock, $10 par value, 250,000 shares authorized, 200,000 shares issued and outstanding ....... $2,000,000 Dividends were not declared on the preferred stock in 2009 and are in arrears. On September 15, 2010, the board of directors of Fleming Corporation declared dividends on the preferred stock to stockholders of record on October 1, 2010, payable on October 15, 2010. On November 1, 2010, the board of directors declared a $2.50 per share dividend on the common stock, payable November 30, 2010, to stockholders of record on November 15, 2010 Instructions Prepare the journal entries that should be made by Fleming Corporation on the dates indicated below: September 15, 2010 November 1, 2010 October 1, 2010 November 15, 2010 October 15, 2010 November 30, 2010

Answer 1

Bradley Inc. Balance sheet (Partial) At December 31,201o Foution No-1 ATE: Amount to Amount Stockholdes Eeuity Paid-in Capital Capital Stock Proeferred $t0ck $$ 100par Value, 8Y, 10,000 8hares autherized 3000 shoares issued 300,000 Common stock, A I par vame, 8o0000 shahes authorüzed , 5 00000 tharee isued Common stock Dividends Distaibutable 500,000 80,000 580,000 ৪৪০,০০০ Total capital qtock Additional Paid-in- Capital Paid-in- Capital in Gcese of Paa vauue-Common tack 950,00o Paid- in-Capital in excefe of Parvalue- Poefeored tock 75,000 VO25, 000 1905,000 55జర 2455,000 Total Additional faid-in-Capital Toteu Paid in capital Retained Easninge (Note) Total Paid in Capital $ Retained Gaowinge (G0,000) 2415,000 200,000 is restacted for plant dees, Toeasusuy stock (10,000 Commin phahe Cauity "To teu $haeholdere' Note- Pasutof retained Easening