Question

View Policies Current Attempt In Progress The stockholders' equity accounts of Pina Colada Corp. on January 1, 2017, were as follows. $249.000 1,437,499 12.450 Preferred Stock (7%, $100 par noncumulative, 4, 150 shares authorized) Common Stock (55 stated value, 345,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Pald-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (4,150 common shares) 694,000 33.200 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 4,540 shares of common stock for $27,240. Mar. 20 Purchased 1,450 additional shares of common treasury stock at $7 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.65 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Dec. 31 Determined that net income for the year was $276,600. Paid the dividend declared on December 1. Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. 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. Round answers to decimal places, eg. 5,275) Date Account Titles and Explanation Debit Credit

Answer 1

The answer is attched below with journal entries. Please refer

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Date Debit Credit 27,240 $ $ 22,700 4,540 $ 10,150 Common Treasury Stock $ 10,150 Shares Par Value per Share $ 33,200 4150 $ 17,430 $ 17,430 JOURNAL ENTRIES IN THE BOOKS OF PINA COLADA CORP Particulars Feb-01 Bank To Common Stock (4540* $5 per share stated value) To Paid - in Capital in excess of Stated Value (4540* $1 per share excess paid) (To record issue of common stock of 4540 shares) Mar-20Treasury Stock (1450 shares * 7 par value per share) To Cash (To record purchase of additional treasury stock) Oct-01 Retained Earning (249000*7%) To Cash Dividend Payable to preffered share holders (To record declaration of dividend to preffered shareholders) Nov-01 Cash Dividend Payable to preffered share holders To Cash To record payment of dividend) Dec-01 Retained Earning To Cash Dividend Payable to common stock holders (To record declaration of dividend to common shareholders) Dec-31 Cash Dividend Payable to common stock holders To Cash (To record payment of dividend) Dec-31 Net Income To Retained Earning (To record transfer of net income to retained earnings) 17,430 $ 17,430 189,826 $ 1,437,499 $ $ 189,826 Share Capital 189,826 Par Value per Share Number of shares New Issue 189,826 Total Shares Dividend per share Dividend Payable 276,600 $ $ $ $ 287,500 4540 292,040 0.65 189,826 276,600 $

Pariculars $ Preffered Stock Particulars Beginning Pariculars $ $ $ Common Stock Particulars Beginning Bank 249,000 $ 1,437,499 $ 22,700 Ending $ 249,000 Ending $ 1,460,199 Pariculars Paid - in Capital in excess of Par Value preference stock Particulars Beginning $ Paid - in Capital in excess of Par Value common stock Pariculars $ Particulars Beginning $ 552,000 Bank $ 4,540 12,450 Ending $ 12,450 Ending $ 556,540 Retained Earning Particulars Cash Dividends Particulars $ $ Pariculars $ Pariculars Cash Dividends to preffered share holders Cash Dividends to common stock holders $ 17,430 Beginning $ 694,000 Cash $ 17,430 Beginning $ . $ 189,826 Net Income $ 276,600 Cash $ 189,826 Retained Earning Retained Earning $ $ 17,430 189,826 Ending $ 763,344 Ending Pariculars Cash $ $ Treasury Stock Particulars 10,150 Beginning $ 33,200 Ending $ 23,050

Partial Balance Sheet Calculations Preffered Stock 249,000 Dividend Payout Ratio Dividend Paid Net Income Ratio = Dividend Paid/ Net Income 189,826 276,600 68.63% Common Stock Paid - in Capital in excess of Par Value preference stock Paid - in Capital in excess of Par Value common stock Retained Earning Treasury Stock 1,460,199 12,450 556,540 763,344 23,050 Earning Per Share Net Income No of Shares Ratio = Net Income/ Common Stock Outstanding 276,600 292,040 $ 0.95 Return on Common Share holders Equity Net Income Common Stock Capital Ratio = Net Income/ Common stock capital 276,600 1,460,199 18.94%