Milton Company's charter authorizes 1,000,000 shares of common Graded Discussion stock and 400,000 shares of preferred stock. In its first year of operations during 2018, the company presented the following transactions: • Issued 5,000 shares of common stock. Stock has par value of $0.01 per share and was issued at $30 per share. Earned Net income $200,000 • Paid dividends of $5 per share. Required 1. Prepare the journal entry to record the following: a. Common stock shares issued b. Close out net income to retained earnings c. Dividend paid d. Close out dividend to retained earnings. 2. Prepare the Stockholders equity section of the company's balance sheet at December 31, 2018 and include the following information > information on par values, > the number of shares authorized and issued where necessary and > the sub total for the total paid in capital > total stockholders' equity

Milton Company's charter authorizes 1,000,000 shares of common Graded Discussion stock and 400,000 shares of preferred stock. In its first year of operations during 2018, the company presented the following transactions: • Issued 5,000 shares of common stock. Stock has par value of $0.01 per share and was issued at $30 per share. Earned Net income $200,000 • Paid dividends of $5 per share. Required 1. Prepare the journal entry to record the following: a. Common stock shares issued b. Close out net income to retained earnings c. Dividend paid d. Close out dividend to retained earnings. 2. Prepare the Stockholders equity section of the company's balance sheet at December 31, 2018 and include the following information > information on par values, > the number of shares authorized and issued where necessary and > the sub total for the total paid in capital > total stockholders' equity

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter12: Statement Of Stockholders’ Equity (stockeq)

Section: Chapter Questions

Problem 3R: Chen Corporation began 2012 with the following stockholders equity balances: The following selected...

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