Journal entries:
Date | Accounts Titles | Debit ($) | Credit($) |
11-Jan | Cash (21900X $16) | 350400 | |
Common Stock (21900 X $10) | 219000 | ||
Paid-in Capital in Excess of Par—Common | 131400 | ||
1-Feb | Equipment | 50800 | |
Factory Building | 169000 | ||
Land | 294000 | ||
Preferred Stock (3900 X $100) | 390000 | ||
Paid-in Capital in Excess of Par—Preferred | 123800 | ||
29-Jul | Treasury Stock (1,800 X $18) | 32400 | |
Cash | 32400 | ||
10-Aug | Cash (1,800 X $14) | 25200 | |
Retained Earnings (1,800 X $2) | 7200 | ||
Treasury Stock | 32400 | ||
Retained Earnings is debited as there is no presence of Paid-in Capital from Treasury Stock ) | |||
31-Dec | Retained Earnings | 33870 | |
Cash Dividend Payable—Common | 6570 | ||
Cash Dividend Payable—Preferred | 27300 | ||
(Cash dividend=outstanding shares*cash dividend) | |||
$6570 = $21900 * 0.30 | |||
$27300 = $3900 * 100 * 7% | |||
31-Dec | Income Summary | 173800 | |
Retained Earnings | 173800 |
b)
Shamrock CORPORATION |
Stockholders’ Equity |
Dec 31 2020 |
Capital stock | ||
Preferred stock—par value $100 per share, | ||
7% cumulative and nonparticipating, | ||
5,500 shares authorized, | ||
3900 shares issued and outstanding | 390000 | |
Common stock—par value $10 per share, | ||
48,400 shares authorized, | ||
21,900 shares issued and outstanding | 219000 | |
Total capital stock (A) | 609000 | |
Additional paid-in capital | ||
Paid-in capital in excess of par—preferred | 123800 | |
Paid-in capital in excess of par—common | 131400 | |
Total (B) | 255200 | |
Total paid-in capital (C=A+B) | 864200 | |
Retained earnings | ||
=173800-(7200+33870) (D) | 132730 | |
Total stockholders’ equity (C+D) | 996930 |
On January 5, 2020, Shamrock Corporation received a charter granting the right to issue 5,500 shares...
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