RETAINED EARNINGS ACCOUNTS AND STATEMENT On January 1, 20--, Nguyen Company’s retained earnings accounts had the following balances: During the year ended December 31, 20--, Nguyen completed the following selected transactions: Mar. 20 Declared a semiannual dividend of $0.75 per share on preferred stock and $0.20 per share on common stock to shareholders of record on April 10, payable on April 15. Currently, 12,000 shares of $50 par preferred stock and 90,000 shares of $2 par common stock are outstanding. Apr. 15 Paid the cash dividends. Oct. 10 Declared semiannual dividend of $0.75 per share on preferred stock and $0.20 per share on common stock to shareholders of record on November 5, payable on November 10. Nov. 10 Paid the cash dividends. 17 Declared a 10% stock dividend to shareholders of record on December 8, distributable on December 15. Market value of the common stock was estimated at $13 per share. Dec. 15 Issued certificates for common stock dividend. 31 Net income for 20-- was $260,000. Closed the income summary account. 31 Closed the cash dividends and stock dividends accounts. REQUIRED 1. Prepare journal entries for the transactions. 2. Post all entries affecting the retained earnings accounts to T accounts. 3. Prepare a statement of retained earnings for the year ended December 31, 20--.

BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 21, Problem 11SPB
Textbook Problem

RETAINED EARNINGS ACCOUNTS AND STATEMENT On January 1, 20--, Nguyen Company’s retained earnings accounts had the following balances:

Chapter 21, Problem 11SPB, RETAINED EARNINGS ACCOUNTS AND STATEMENT On January 1, 20--, Nguyen Companys retained earnings

During the year ended December 31, 20--, Nguyen completed the following selected transactions:

Mar. 20 Declared a semiannual dividend of $0.75 per share on preferred stock and $0.20 per share on common stock to shareholders of record on April 10, payable on April 15. Currently, 12,000 shares of $50 par preferred stock and 90,000 shares of $2 par common stock are outstanding.

Apr. 15 Paid the cash dividends.

Oct. 10 Declared semiannual dividend of $0.75 per share on preferred stock and $0.20 per share on common stock to shareholders of record on November 5, payable on November 10.

Nov. 10 Paid the cash dividends.

17 Declared a 10% stock dividend to shareholders of record on December 8, distributable on December 15. Market value of the common stock was estimated at $13 per share.

Dec. 15 Issued certificates for common stock dividend.

31 Net income for 20-- was $260,000. Closed the income summary account.

31 Closed the cash dividends and stock dividends accounts.

REQUIRED

1. Prepare journal entries for the transactions.

2. Post all entries affecting the retained earnings accounts to T accounts.

3. Prepare a statement of retained earnings for the year ended December 31, 20--.

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Chapter 21 Solutions

College Accounting, Chapters 1-27
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