Problem 11-2A (Part Level Submission) The stockholders\' equity accounts of Rive
ID: 2529811 • Letter: P
Question
Problem 11-2A (Part Level Submission) The stockholders' equity accounts of Riverbed Corp on January 1, 2017, were as follows. 00 shares authorized) Preferred stock (7%, $100 par noncumulative, 5,0 Common Stock ($4 stated value, 300,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (5,000 common shares) $300,000 1,000,000 15,000 480,000 710,000 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 5,000 shares of common stock for $30,000. Mar. 20 Purchased 1,000 additional shares of common treasury stock at $8 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1 Dec. 1 Declared a $0.70 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Dec. 31 Determined that net income for the year was $280,400. Paid the dividend declared on December1Explanation / Answer
**common stock outstanding : [1000000/4=250000 +5000 issue- 5000treasury -1000]= 249000*.7=174300
Date Account Debit credit Feb 1 cash 30000 common stock [5000*4] 20000 paid in capital in excess of stated value 10000 mar 20 Treasury stock 8000 cash [1000*8] 8000 oct 1 Cash dividend 21000 Dividend payable [300000*.07] 21000 nov 1 Dividend payable 21000 cash 21000 dec 1 cash dividend- 174300 Dividend payable 174300