90.2K

Verified Solution

Link Copied!

mostafa Corporation had retained earnings at January 1, 2017, of$950,000.

the Corporation had 500,000 shares of $ 2.5 par value commonstock outstanding throughout 2017. Net income for 2017 was$520,000. The following transactions occurred during 2017:

?

?July 1??A cash dividends of $0.5 per share was declared tostockholders of

record on July 20.

?Aug. 1??Paid the cash dividends.

?Nov. 1??A 7% stock dividends was declared. The market price atthe declaration date was  

  $9 per share.

?Dec. 15?Distributed the stock dividends shares.

Required:

1. Journalize the 2017 dividends transactions.

2. Prepare a retained earnings statement for 2017.

——

Question 2 :

The following accounts appear in the ledger of Aston Corporationafter the books are closed at December 31, 2008.

Common Stock, $1 par value, 500,000 shares authorized, 400,000shares

issued …………………………………………………………………………$400,000

Paid-in Capital in Excess of Par Value—Common Stock………………….....650,000

Preferred Stock, $100 par value, 8%, 10,000 shares authorized;2,000 shares

issued …………………………………………………………………………..200,000

Retained Earnings ……………………………………………………………..950,000

Treasury Stock (10,000 common shares) ………………………………………85,000

Paid-in Capital in Excess of Par Value—Preferred Stock…………………….310,000

Required: Prepare the stockholders' equity section at December31, 2008.