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The stockholders' equity accounts of Jacob Corporation on January 1, 20X1, contained the following balances: Preferred Stock (10%, $100 par value, 4,000 shares authorized) Issued and Outstanding, 1,300 Shares Paid-in Capital in Excess of Par Value-Preferred Common Stock ($20 par value, 23,000 shares authorized) Issued and Outstanding, 11,500 Shares Retained Earnings Total Stockholders' Equity $130,000 1,300 $131,300 230,000 400,200 $ 761,500 Transactions affecting stockholders' equity during 20X1 follow. DATE TRANSACTIONS June 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on July 15 to stockholders of record on June 30. July 15 Paid the dividend on preferred stock. Dec. 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1, and a cash dividend of $3.30 per share on common stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1. Make separate entries. 15 Declared a 5 percent common stock dividend to common stockholders of record on December 31, 20X1. The new shares are to be issued on January 15, 20X2. A fair value price of $30 per share is expected for the new shares of common stock. Dec. 31 Created an "appropriation of retained earnings for contingencies" of $53,000 because of the poor economic outlook. 31 The Income Summary account contained a debit balance of $16,500. The board had anticipated a net loss for the year and no quarterly deposits of estimated income taxes were made, so income taxes may be ignored. Required: 1. & 2. Record the above transactions in the general journal for 20X1 and post them to the Retained Earnings account (381) and record the January 1, 20X1, balance.

The stockholders' equity accounts of Jacob Corporation on January 1, 20X1, contained the following balances: Preferred Stock (10%, $100 par value, 4,000 shares authorized) Issued and Outstanding, 1,300 Shares Paid-in Capital in Excess of Par Value-Preferred Common Stock ($20 par value, 23,000 shares authorized) Issued and Outstanding, 11,500 Shares Retained Earnings Total Stockholders' Equity $130,000 1,300 $131,300 230,000 400,200 $ 761,500 Transactions affecting stockholders' equity during 20X1 follow. DATE TRANSACTIONS June 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on July 15 to stockholders of record on June 30. July 15 Paid the dividend on preferred stock. Dec. 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1, and a cash dividend of $3.30 per share on common stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1. Make separate entries. 15 Declared a 5 percent common stock dividend to common stockholders of record on December 31, 20X1. The new shares are to be issued on January 15, 20X2. A fair value price of $30 per share is expected for the new shares of common stock. Dec. 31 Created an "appropriation of retained earnings for contingencies" of $53,000 because of the poor economic outlook. 31 The Income Summary account contained a debit balance of $16,500. The board had anticipated a net loss for the year and no quarterly deposits of estimated income taxes were made, so income taxes may be ignored. Required: 1. & 2. Record the above transactions in the general journal for 20X1 and post them to the Retained Earnings account (381) and record the January 1, 20X1, balance.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...
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The stockholders' equity accounts of Jacob Corporation on January 1, 20X1, contained the following balances: Preferred Stock (10%, $100 par value, 4,000 shares authorized) Issued and Outstanding, 1,300 Shares Paid-in Capital in Excess of Par Value-Preferred Common Stock ($20 par value, 23,000 shares authorized) Issued and Outstanding, 11,500 Shares Retained Earnings Total Stockholders' Equity $130,000 1,300 $131,300 230,000 400,200 $ 761,500 Transactions affecting stockholders' equity during 20X1 follow. DATE TRANSACTIONS June 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on July 15 to stockholders of record on June 30. July 15 Paid the dividend on preferred stock. Dec. 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1, and a cash dividend of $3.30 per share on common stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1. Make separate entries. 15 Declared a 5 percent common stock dividend to common stockholders of record on December 31, 20X1. The new shares are to be issued on January 15, 20X2. A fair value price of $30 per share is expected for the new shares of common stock. Dec. 31 Created an "appropriation of retained earnings for contingencies" of $53,000 because of the poor economic outlook. 31 The Income Summary account contained a debit balance of $16,500. The board had anticipated a net loss for the year and no quarterly deposits of estimated income taxes were made, so income taxes may be ignored. Required: 1. & 2. Record the above transactions in the general journal for 20X1 and post them to the Retained Earnings account (381) and record the January 1, 20X1, balance.
Transcribed Image Text:The stockholders' equity accounts of Jacob Corporation on January 1, 20X1, contained the following balances: Preferred Stock (10%, $100 par value, 4,000 shares authorized) Issued and Outstanding, 1,300 Shares Paid-in Capital in Excess of Par Value-Preferred Common Stock ($20 par value, 23,000 shares authorized) Issued and Outstanding, 11,500 Shares Retained Earnings Total Stockholders' Equity $130,000 1,300 $131,300 230,000 400,200 $ 761,500 Transactions affecting stockholders' equity during 20X1 follow. DATE TRANSACTIONS June 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on July 15 to stockholders of record on June 30. July 15 Paid the dividend on preferred stock. Dec. 15 Declared a semiannual dividend of 5 percent on preferred stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1, and a cash dividend of $3.30 per share on common stock, payable on January 15, 20X2, to stockholders of record on December 31, 20X1. Make separate entries. 15 Declared a 5 percent common stock dividend to common stockholders of record on December 31, 20X1. The new shares are to be issued on January 15, 20X2. A fair value price of $30 per share is expected for the new shares of common stock. Dec. 31 Created an "appropriation of retained earnings for contingencies" of $53,000 because of the poor economic outlook. 31 The Income Summary account contained a debit balance of $16,500. The board had anticipated a net loss for the year and no quarterly deposits of estimated income taxes were made, so income taxes may be ignored. Required: 1. & 2. Record the above transactions in the general journal for 20X1 and post them to the Retained Earnings account (381) and record the January 1, 20X1, balance.
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