The stockholders’ equity accounts of Rayburn Corporation as of January 1 appear below:Common stock, $7 par value, 400,000 shares authorized; 180,000 shares issued and outstanding$1,260,000Paid-in capital in excess of par value920,000Retained earnings513,000 During the year, the following transactions occurred:June7Declared a 10 percent stock dividend; market value of the common stock was $13 per share.June28Issued the stock dividend declared on June 7.Dec.5Declared a cash dividend of $1.45 per share.Dec.26Paid the cash dividend declared on December 5. Requireda. Prepare journal entries to record the foregoing transactions.General JournalDateDescriptionDebitCreditJun.07AnswerAnswerAnswer Stock Dividends DistributableAnswerAnswer AnswerAnswerAnswer Declared stock dividend. Jun.28AnswerAnswerAnswer Common StockAnswerAnswer Issued common shares as stock dividend. Dec.05AnswerAnswerAnswer AnswerAnswerAnswer Declared a cash dividend on common stock outstanding. Dec.26AnswerAnswerAnswer AnswerAnswerAnswer Paid cash dividend declared on Dec. 5. b. Prepare a statement of retained earnings. The net income for the year is $432,000.Do not use negative signs with your answers.RAYBURN CORPORATIONStatement of Retained EarningsFor the Year Ended December 31 Retained Earnings, January 1 Answer Answer Answer Answer AnswerAnswer Stock Dividends DeclaredAnswerAnswer Answer Answer

Answered: The stockholders’ equity accounts of…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 9SPA

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The stockholders’ equity accounts of Rayburn Corporation as of January 1 appear below:

Common stock, $7 par value, 400,000 shares authorized;
180,000 shares issued and outstanding	$1,260,000
Paid-in capital in excess of par value	920,000
Retained earnings	513,000

During the year, the following transactions occurred:

June	7	Declared a 10 percent stock dividend; market value of the common stock was $13 per share.
June	28	Issued the stock dividend declared on June 7.
Dec.	5	Declared a cash dividend of $1.45 per share.
Dec.	26	Paid the cash dividend declared on December 5.

Required

a. Prepare journal entries to record the foregoing transactions.

General Journal
Date	Description	Debit	Credit
Jun.07	Answer	Answer	Answer
	Stock Dividends Distributable	Answer	Answer
	Answer	Answer	Answer
	Declared stock dividend.
Jun.28	Answer	Answer	Answer
	Common Stock	Answer	Answer
	Issued common shares as stock dividend.
Dec.05	Answer	Answer	Answer
	Answer	Answer	Answer
	Declared a cash dividend on common stock outstanding.
Dec.26	Answer	Answer	Answer
	Answer	Answer	Answer
	Paid cash dividend declared on Dec. 5.

b. Prepare a statement of retained earnings. The net income for the year is $432,000.

Do not use negative signs with your answers.


Retained Earnings, January 1		Answer
Answer		Answer
		Answer
Answer	Answer
Stock Dividends Declared	Answer	Answer
Answer		Answer

Expert Solution

Step 1

You enter transaction information into your company's books to create a journal entry. In the second step of the accounting cycle, your journal entries are decided to enter into the general ledger. Financial reporting journals are used to keep track of business transactions before posting them to the general ledger. Every journal entry in the general ledger included the transaction date, amount, affected accounts with account information, and a description. The journal entry may also include an identifier, such as a cheque number, and a brief explanation of the transaction.

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