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P12-26A (20-25 min) Journal Entry Date Accounts Jan 16 Feb 15 June 10 July 30 Oct. 26 Nov 8 Nov 30 Debit Credit P12-28A (20-25 min) Req. 1 Journal...

This question was answered on Apr 23, 2011. View the Answer
Journalizing stockholders equity transactions. Airborne Manufacturing Co. complete the following transactions during 2009
Jan 16- Declared a cash dividend on the 4%, $102 par preferred stock (1,050 shares outstanding) Declared a $0.55 per share dividend on the 95,000 shares of common stock outstanding. The date of record is January 31, and the payment due date is February 15.
Feb15- Paid the cash dividends
June 10 Split common stock 2 for 1. Before the split, airborne had 95,000 shares of $10 par common stock outstanding
Jul 30 Distributed a 25% stock dividend on the common stock. The market value of the common stock was $10 per share
Oct 26 Purchased 3,000 shares of treasury stock at $15 per share
Nov 8 Sold 1,500 shares of treasury stock for $20 per share
Nov 30 Sold 1,500 shares of treasury stock for $9 per share

Requirement: Record the transactions in Airbornes general journal

Journalizing dividend and treasury stock transactions, preparing a statement of retained earnings and preparing stockholders equity.
The balance sheet of Patrick Management Consulting Inc at December 31, 2011, reported the following stockholders equity:
Paid-in capital:
Common stock, $15 par, 300,000 shares authorized
20,000 shares issued $300,000
Paid-in capital in excess of par-common 310,000
Total paid in capital 610,000
Retained earnings 158,000
Total stockholders equity $768,000

During 2012 Patrick completed the following selected transactions:
Feb6 Distributed 10% stock dividend on the common stock. The market value of Patrick’s stock was $26 per share
Jul 29 Purchased 2,000 shares of treasury stock of $26 per share
Nov 27 Declared $0.30 per share dividend on the 20,000 shares of common stock outstanding. The date of record in December 17 and the payment date is January 7, 2013.
Dec 31 Closed the $86,000 net income to retained earnings.
1. Record the transactions in the general journal.
2. Prepare a retained earnings statement for the year ended December 31, 2012
3. Prepare the stockholders equity section of the balance sheet at December 31, 2012

Computing EPS and reporting a retained earnings restriction

The capital structure of Rodeswell Inc at December 31, 2010, included 30,000 shares of $2.00 preferred stock and 40,000 shares of common stock. Common stock outstanding during 2011 totaled 40,000 shares. Income from continuing operations during 2011 was $104,000. The company discontinued the segment of the business at a gain of $20,000 and also had an extraordinary gain of $10,000. The rodeswell board of directors restricts $98,000 of retained earnings for contingencies. Retained earnings at December 31, 2010 was $98,000 and the company declared preferred dividends of $60,000 during 2011.
1. Compute Rodeswells earnings per share for 2011. Start with income from continuing operations. All income and loss amounts are net of income tax.
2. Show two ways of reporting Rodeswells retained earnings restriction.

Preparing a detailed income statement
The following info was taken from the records of the underwood inc at sept 30, 2010

Selling expense $124,000
General expenses 131,000
Income from discontinued operations 8,000
Retained earnings, beginning 87,000
Costs of goods, sold 437,000
Treasury stock, common (1,100) shares 12,100
Net sales revenue 832,000
Common stock, $10 par 21,100
Shares authorized and issued $211,000

Preferred stock $5, no-par
3,000 shares issued 150,000

Income tax expense:
Continueing operations 72,000

Income from discontinued operations 3,200

1. Prepare a multi step income statement for underwood inc for the fiscal year ended sept 30, 2010. Include earnings per share.

P12-26A (20-25 min) Journal Entry Date Accounts Debit Credit Jan 16 Feb 15 June 10 July 30 Oct. 26 Nov 8 Nov 30
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P12-28A (20-25 min) Req. 1 Journal Entry Date Accounts Debit Credit Feb. 6 Jul. 29 Nov. 27 Dec. 31 Req. 2 Patrick Management Consulting, Inc. Statement of Retained Earnings Year Ended December 31, 2012 Req. 3 Stockholders' Equity at December 31, 2012 Paid–in Capital: Subtotal
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Dear Student, Please find the solution attached. [In... View the full answer


$42,370.00 Cash dividend
Share dividend
Cash dividend payable
Share dividend payable
$42,036.00 Cash dividend payable
Cash $4,284.00
$4,284.00 $40,330.00...

This question was asked on Apr 18, 2011 and answered on Apr 23, 2011.

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