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Retained Earnings Accounts and Statement

1. Prepare journal entries for the transactions.

If an amount box does not require an entry, leave it blank.

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--.

On January 1, 20--, Glover Company's retained earnings accounts had the following balances:

Appropriated for land acquisition	$	60,000
Unappropriated retained earnings		900,000
	$	960,000

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

Mar. 20	Declared a semiannual dividend of $0.80 per share on preferred stock and $0.25 per share on common stock to shareholders of record on April 10, payable on April 15. Currently, 10,000 shares of $50 par preferred stock and 100,000 shares of $5 par common stock are outstanding.
Apr. 15	Paid the cash dividends.
Oct. 10	Declared semiannual dividend of $0.80 per share on preferred stock and $0.25 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 5% stock dividend to shareholders of record on December 8, distributable on December 15. Market value of the common stock was estimated at $18 per share.
Dec. 15	Issued certificates for common stock dividend.
31	Net income for 20-- was $290,000. Closed the income summary account.
31	Closed the cash dividends and stock dividends accounts.

1. Prepare journal entries for the transactions.

If an amount box does not require an entry, leave it blank.

GENERAL JOURNAL				PAGE 1
DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
20--
Mar. 20	Cash Dividends Cash Common Dividends Payable Income Summary
	Cash DividendsIncome SummaryPaid-In Capital in Excess of Par- Common StockPreferred Dividends Payable
	Common Dividends PayableCommon StockIncome SummaryStock Dividends Distributable
Apr. 15	CashCommon StockIncome SummaryPreferred Dividends Payable
	Cash DividendsCashCommon Dividends PayableStock Dividends Distributable
	CashIncome SummaryPreferred Dividends PayableStock Dividends Distributable
Oct. 10	Cash DividendsCashCommon Dividends PayablePreferred Dividends Payable
	Income SummaryPreferred Dividends PayableRetained EarningsStock Dividends Distributable
	Cash DividendsCommon Dividends PayableIncome SummaryStock Dividends Distributable
Nov. 10	CashCommon StockIncome SummaryPreferred Dividends Payable
	Cash DividendsCommon Dividends PayableCommon StockStock Dividends Distributable
	Cash DividendsCashPreferred Dividends PayableRetained Earnings
Nov. 17	CashIncome SummaryPaid-In Capital in Excess of Par-Common StockStock Dividends
	CashCommon StockIncome SummaryStock Dividends Distributable
	Income SummaryPaid-In Capital in Excess of Par-Common StockRetained EarningsStock Dividends
Dec. 15	CashCommon StockPaid-In Capital in Excess of Par-Common StockStock Dividends Distributable
	CashCommon StockPaid-In Capital in Excess of Par-Common StockStock Dividends Distributable
Dec. 31	CashIncome SummaryRetained EarningsStock Dividends Distributable
	CashIncome SummaryRetained EarningsStock Dividends Distributable
Dec. 31	CashCommon StockRetained EarningsStock Dividends
	Cash DividendsCommon StockIncome SummaryStock Dividends Distributable
	CashIncome SummaryRetained EarningsStock Dividends

For parts 2 and 3, look at the image below.

Retained Earnings Accounts 2. Post all entries affecting the retained earnings accounts to T accounts. Retained Earnings-Appropriated for Land Acquisition Bal. Retained Earnings-Unappropriated Bal. Bal. Generalized Statement 3. Prepare a statement of retained earnings for the year ended December 31, 20-- Glover Company Statement of Retained Earnings For Year Ended December 31, 20-- Appropriated: Unappropriated: Total retained earnings, December 31 Retained Earnings Accounts 2. Post all entries affecting the retained earnings accounts to T accounts. Retained Earnings-Appropriated for Land Acquisition Bal. Retained Earnings-Unappropriated Bal. Bal. Generalized Statement 3. Prepare a statement of retained earnings for the year ended December 31, 20-- Glover Company Statement of Retained Earnings For Year Ended December 31, 20-- Appropriated: Unappropriated: Total retained earnings, December 31

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