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Chapter 15: Question 1BE (page 811)
Buttercup Corporation issued 300 shares of \(10 par value common stock for \)4,500. Prepare Buttercup鈥檚 journal entry.
In Buttercup Corporation's book, cash is debited.
Common stock and paid-in capital in excess of par common stock are credited.
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(Cash Dividend and Liquidating Dividend) Lotoya Davis Corporation has 10 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 80 cents per share cash dividend to stockholders of record as of June 14, payable June 3
Instructions
Where in the financial statements is preferred stock normally reported?
Discuss the propriety of showing:
(Stockholders鈥� Equity Section) Bruno Corporation鈥檚 post-closing trial balance at December 31, 2017, is shown as follows.
BRUNO CORPORATION POST-CLOSING TRIAL BALANCE DECEMBER 31, 2017 | ||
Dr. | Cr. | |
Accounts payable | \( 310,000 | |
Accounts receivable | \) 480,000 | |
Accumulated depreciation鈥攂uildings | 185,000 | |
Additional paid-in capital in excess | ||
of par鈥攃ommon | 1,300,000 | |
From treasury stock | 160,000 | |
Allowance for doubtful accounts | 30,000 | |
Bonds payable | 300,000 | |
Buildings | 1,450,000 | |
Cash | 190,000 | |
Common stock (\(1 par) | 200,000 | |
Dividends payable (preferred stock鈥攃ash) | 4,000 | |
Inventory | 560,000 | |
Land | 400,000 | |
Preferred stock (\)50 par) | 500,000 | |
Prepaid expenses | 40,000 | |
Retained earnings | 301,000 | |
Treasury stock (common at cost) | 170,000 | |
Totals | \(3,290,000 | \)3,290,000 |
At December 31, 2017, Bruno had the following number of common and preferred shares. | ||
Common | Preferred | |
Authorized | 600,000 | 60,000 |
Issued | 200,000 | 10,000 |
Outstanding | 190,000 | 10,000 |
The dividends on preferred stock are \(4 cumulative. In addition, the preferred stock has a preference in liquidation of \)50 per share.
Instructions
Prepare the stockholders鈥� equity section of Bruno鈥檚 balance sheet at December 31, 2017.
Wilco Corporation has the following account balances at December 31, 2017.
Common stock, \(5 par value \) 510,000
Treasury stock 90,000
Retained earnings 2,340,000
Paid-in capital in excess of par鈥攃ommon stock 1,320,000
Prepare Wilco鈥檚 December 31, 2017, stockholders鈥� equity section.
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