Question

The stockholders' equity section of Robert Corporation's balance sheet as of December 31, 2019 is as follows: Common Stock. $1 par value; 1,500,000 shares issued and outstanding $ 1,500,000 Paid-in Capital in Excess of Par Common Stock 3,750,000 Preferred Stock, 5%, $50 par, cumulative, 20,000 shares issued and outstanding 1,000,000 Paid-in Capital in Excess of Par-Preferred Stock 1,250,000 Part A: On the next pages, record the journal entries for the events that occurred on the following dates during 2020. I no entry is required, write "No entry' on that date. (Please skip a line between each transaction! Important: Keep close track of number of shares as you record the transactions! Jan 5 Jan 6 March 10 June 1 June 10 June 20 July 1 July 31 Aug 15 Sept 1 Issued 250,000 shares of common stock for $10 per share. 2. 000 Issued 5,000 shares of preferred stock for $75 per share. 375 000 Issued 50,000 shares of common stock and 5,000 shares of preferred stock for a lump sum of $875,000. The March 10 market price of the common stock is $11 per share and the preferred stock is $74 per share. Ed .D.COD A 10% common stock dividend was declared. Fair value per share is currently $12. The shares will be distributed on June 20 to stockholders of record on June 10. Date of record for stock dividend.No Extra Distributed shares from the stock dividend declared on June 1 Acquired 10,000 of its own common stock at $15 per share. Reissued 6,000 shares of the treasury stock at $16 per share. Reissued the remaining 4,000 shares of the treasury stock at $13 per share. A 50% common stock dividend was declared. Fair value is currently $20 per share. The shares will be distributed on September 20 to stockholders of record on September 10. Date of record for stock dividend.No Foto Distributed shares from the stock dividend declared on September 1 A cash dividend of $250,000 was declared, payable October 31 to stockholders of record October 15. No dividends were paid during fiscal year 2019. Record the common dividend payable and the preferred dividend payable in separate accounts. Date of record for cash dividend. Paid cash dividend declared on October 1. A two-for-one split of common stock was carried out. Fair value on November 30 was $10 per share Sept 10 Sept 20 Oct 1 Oct 15 Nov 30 Part B: Complete the information in the blanks below for December 31, 2020 Common Stock par value; shares issued and outstanding Paid-in Capital in Excess of Par-Common Stock Preferred Stock, 5%,_ par, cumulative, shares issued and outstanding Paid-in Capital in Excess of Par-Preferred Stock

Answer 1

Jan 5

Cash 2500000

To common stock 2500000

Jan 6

Cash 375000

To preferred stock A/c. 375000

March 10

Cash. 550000

To common stock 500000

To securities premium. 50000

March 10

Cash 370000

Discount on issue of preferred stock 50000

To preferred stock. 375000

June 1

Stock dividend 300000

To common stock [250000shares ×10%×$12]. 300000

June 10

No entry

June 20

Retained earnings. 300000

To stick dividend. 300000

July 1

Common stock. 100000

Additional paid up capital. 50000

To cash. 150000

July 31

Cash 52000

To treasury tock. 40000

To additional paid up capital. 12000

Sept 1

Stock dividend 2500000

To common stock [250000×50%×$20] 2500000

Sept 10

No entry

Sept 20

Retained earnings. 2500000

To stock dividend 2500000