Acct 551 HW week 5

E15 -15
A.
Retained Earnings 97,500 Common Stock 25,000 Paid in Capital in Excess of Par -Common stock 72,500 Common Stock Dividend Distibutable 25,000 Common Stock 25,000 B. No entry required $2 shares outstanding are 300,000 (60,000x5)

C. Date Journal Entry Debit Credit
5-Jan-14 Debt investments 35,000 Unrealized holding loss or gain 35,000
5-Jan-14 Retained Earnings 135,000 Propery Dividends payable 1,350,000
25-Jan-14 Property Divideneds Payable 135,000 Debt Investments 1,350,000 E15-16 Total income since incorporation $317,000.00
Less: Total cash dividends paid $60,000.00
Total value of stock dividends 30,000 90,000
Current balance of retained earnings 227,000 E15-18
(A) 1. Dividends payable-preferred (2,000x$10) 20,000 Dividends payable-common(2,000x$2) 40,000 Cash 60,000 2. Treasury Stock 68,000 Cash (1,700x $40) 68,000 3. Land 30,000 Treasury stock(700x40) 28,000 Paid in Capital From Treasury Stock 2,000 4. Cash (500x105) 52,500 Preferred Stock (500x100) 50,000 Paid in Capital in Excess of Par Preferred 2,500 5. Retained Earnings (1,900x45) 85,500 Common Stock dividend distributable (1,900x5) 9,500 Paid in Capital in Exces of Par Common 76,000 (20,000-1,700+700=19,0000: 19,000x 10%) 6. Common stock Dividend distributable 9,500 Common Stock 9,500 7. Retained Earnings 66,800 Dividends payable- Preferred (2,500x10) 25,000 Dividends payable- Common (2,500x2) 41,800