Question

problem set A

of Si par value tanding at December 31 (All dollarda The preferred stock has 357.40 share cumulative dividend preference. At December JIU are issued and 546,024 shares are outstanding. There are 1.8 billion shares of authorized, of which 924.6 million are issued and 844.8 million are outstand disclosure of all relea reno preferred divide Instructions Prepare the stockholders' equity section of the current year, including di b. Compute the book value per share of common stock, assuming there are arreurs. (Round to two decimals.) olders' equity of $3.20 of par- prelet stock outstanding E14.19 (LOS) At December 31, Gorden Corporation has total stockholders cluded in this total are preferred stock $500,000 and paid-in capital in excess 550,000. There are 10,000 shares of $50 par value, 8% cumulative preferred stoc end, 200,000 shares of common stock are outstanding. Instructions Crow the book value per share of common stock under each of the following a ano preferred dividends in arrears, and the preferred stock does not have vd dividends are one year in arrears, and the preferred stock has a call price e following assumptions. does not have a call price call price of 560 and C GLS P14.1A (LO 1, 2) Financial Statement On January 1, 2020, Geffrey Corporation had the stockholders' equity accounts. Common Stock ($20 par value, 60,000 shares issued and b outstanding) $1,200,000 200.000 Paid-in Capital in Excess of Par-Common Stock Retained Earnings 600.000 During the year, the following transactions occurred. Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15. payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was 556 July 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable On July 1, the market price of the stock was $13 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.50 per share dividend to stockholders of record on December 13 January 5, 2021. 31 Determined that net income for the year was $350,000. Instructions December 15, payable a. Journalize the transactions and the closing entries for net income and dividend b. Enter the beginning balances, and post the entries to the stockholders' equity additional stockholders' equity accounts as needed.) c. Prepare a stockholders' equity section at December 31. ily accounts. (Note: Open uity section, dende P14.2A (LO 1, 2) Financial Statement The post alesini balong of Morey Cam

Answer 1

a. In the books of Geffrey Corporation :

Date	Account Titles	Debit	Credit
		$	$
Feb 1	Dividends ( 60,000 x $ 1 )	60,000
	Dividends Payable		60,000
Mar 1	Dividends Payable	60,000
	Cash		60,000
Apr 1	No journal entry required	0	0
July 1	Retained Earnings ( 120,000 x 10 % x $ 13 )	156,000
	Common Stock Dividend Distributable ( 120,000 x 10 % x $ 10 )		120,000
	Paid-in Capital in Excess of Par: Common Stock		36,000
July 31	Common Stock Dividend Distributable	120,000
	Common Stock		120,000
Dec 1	Dividends ( 132,000 x $ 0.50)	66,000
	Dividends Payable		66,000
Dec 31	Income Summary	350,000
	Retained Earnings		350,000
Dec 31	Retained Earnings ( 60,000 + 66,000)	126,000
	Dividends		126,000

b.

Common Stock
		Beg. bal.	1,200,000
		July 31	120,000
		End. bal.	1,320,000
Paid-in Capital in Excess of Par: Common Stock
		Beg. bal.	200,000
		July 1	36,000
		End. bal.	236,000
Retained Earnings
July 1	156,000	Beg. bal.	600,000
Dec 31	126,000	Dec 31	350,000
		End. bal.	668,000

c.

Geffrey Corporation Balance Sheet ( Partial ) December 31, 2020
Stockholders Equity
Common Stock ( $ 10 par, 132,000 shares issued and outstanding)	$ 1,320,000
Paid-in Capital in Excess of Par Value: Common Stock	236,000
Total Paid-in Capital	1,556,000
Retained Earnings	668,000
Total Stockholders Equity	$ 2,224,000