Question

The following is the Shareholders Equity section of the BillyBoB Corporation at December 31, 2017: Preferred Stock, 10% annual dividend, $40 par, 100,000 shares authorized, 7,000 shares issued& outstanding280,000 Common Stock, $5 par, 750,000 shares authorized, 112,000 issued & outstanding.. Paid-In Capital in excess of par on preferred...70,000 Paid-In Capital in excess of par on common210,000 560,000 Retained Earnings 1,280,000 January 20, 2018 BillyBoB Corp issued 38,000 shares of common stock for $456,000 cash. February 5, 2018 The price of common stock has increased 25 % since the January 20, 2015 sale. BillyBoB Corp. declared a 10% common stock dividend to shareholders of record February 10th, payable February 18th. BillyBoB Corp buys back 13,200 of its own common shares at an average price of $18 cash per share. February 28, 2018 BillyBoB Corp. declared a cash dividend on common stock of 25 cents per share to shareholders of record March 10th, payable March 28th. In addition, preferred dividends are declared and paid for the quarter. March 4, 2018 Required: 1. 2. Journalize the above transactions omitting explanations. Prepare a Shareholders Equity section of the BillyBoB Corporation at March 31, 2018, assuming the net income for January, February, and March is $82,000.

Answer 1

The follaing is the s hateholde Seetion of the Bil 8oB coepotation at Decem bes 31, 20 Debt$ ched 20-jan-ash 456000 201g common stock 0 Pcud in capitalin excess 19 0000 26600 Pee on CS C Bein iSsued bu cos 5 -Feb Stock dividend 225000O To ommon słock distei bu 1 5 00O fable 150000 Csłock dividend declazed at MV(45600o/38000) *1- 23 15and quaityCI12000+ 33000 * 10%-15000 13 feb-Common stock distibdablet 500 o To co ㅺ on Stock 7600o CBelnf Common stock ssue

28- feb-estock Alc 2 31600. To cash 231600 Being by back of CS 13200 I ? 151800 米0.25) 2 8000 O 2.018 Prefesse d divide)d 7600 To Dividend To Psefessed dividend Payable pageble 150 1000 CI6B000- 1380g 51800 CS) 269950 To stock dividend 22500 O To Dividend To afesed Dividend 3 795 1000 chl-Toco me summqe 82D00

2. Shase holdee Equty section as on March 31, 20/f psepesied stock 101. annual divid $ 40 Pat, 10,0000 shase s autnotjse d, fooo shqseş issued $2 8o,000 authou se d t6 s00 shqseş issqed and 15 180 o Oats lanain 626000 Rud in capital in e cess ofR5 on Common Slock Capia conteibation Relained EaS 175000 092 O50o - 2376 00 85445 O 258 g,450