Question

TOP Bronx Community College Problem 14-02A 3-C (Part Level Submission) The post-closing trial balance of Blossom Corporation at December 31, 2020, contains the following stockholders' equity accounts Preferred Stock (14,000 shares issued) Common Stock (240,000 shares issued) 2,400,000 Paldin Capital in Excess of Par--Preferred Stock 240,000 Paid in Capital in Excess of Par-Common Stock Common Stock Dividends Distributable Retained Earnings $700,000 380,000 240,000 966,500 A review of the accounting records reveals the following. 1. 2. 3. 4. 5. No errors have been made in recording 2020 transactions or in preparing the closing entry for net income Preferred stock is $50 par, 6%, and cumulative; 14,000 shares have been outstanding since January 1, 2019 Authorized stock is 19,000 shares of preferred, 480,000 shares of common with a $10 par value. The January 1 balance in Retained Earnings was $1,100,000 On July 1, 18,000 shares of common stock were issued for cash at $16 per share. On September 1, the company discovered an understatement error of $85,000 in computing sales and wages expertise in 2019. The rest of tax effect of 1.500 to Retained Earnings Acash dividend of $240.000 was declared and properly allocated to preferred and common stock on October 1. dividends were pad te preferred On December 31, a 10% common stock dividend was declared out of retained on common stock when the market price perhere was 16. Net Income for the year was $550.000 On December 31, 2020, the directors authorized disclosure of a $190,000 restriction of retained for plant r y 8 9. 10.

Answer 1

Solution a:

AK SK 29 30 31 32 33 34 35 36 Retained Earnings Account Correction of understatement error 59500 Beg. balance Cash dividend 240000 Net income stock dividend (240000*10%*$16) 384000 11000001 550000 37 38 39 Ending balancel 966500 43 44 46 47 48 49 50 51 52 53 54 55 58 59 60 61 62 63 64 65 66 67 68 Sheet174 Sheet172 Sheet319 (3) Sheet176 She