Question

Connon stock, $10 par value Paid-in capital in excess of par value, common stock Retained earnings $ 420,00 100,000 340,000 In the fourth quarter, the following entries related to its equity are recorded. Date Oct. 2 Credit General Journal Retained Earnings Common Dividend Payable Debit 60,000 60,000 Oct. 25 Common Dividend Payable Cash 60,000 60,000 Oct. 31 83,000 Retained Earnings Common Stock Dividend Distributable Paid-In Capital in Excess of Par Value, Conmon Stock 40,000 43,000 Nov. 5 Common Stock Dividend Distributable Common Stock, $10 Par Value 40,000 40,000 Dec. 1 Memo-Change the title of the common stock account to reflect the new par value of $4. Dec. 31 Income Summary Retained Earnings 270,000 270,000 Required: 2. Complete the following table showing the equity account balances at each indicated date. Oct. 2 Oct 26 Oct 31 Nov. 5 Dec. 1 Dec 31 Sep 30 Beg Bal 420,000 Common stock $

Answer 1

2.

	Sep. 30	Oct. 2	Oct. 26	Oct. 31	Nov. 5	Dec. 1	Dec. 31
Common stock	420,000	420,000	420,000	420,000	460,000	460,000	460,000
Common stock dividend distributable	0	0	0	40,000	0	0	0
Paid in capital, in excess of par, common stock	100,000	100,000	100,000	143,000	143,000	143,000	143,000
Retained earnings	340,000	280,000	280,000	197,000	197,000	197,000	467,000
Total equity	860,000	800,000	800,000	800,000	800,000	800,000	1,070,000

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