Please help with part B. and use the information to solve.. Please format correc
ID: 2536371 • Letter: P
Question
Please help with part B. and use the information to solve.. Please format correctly. For better clarity.
Problem 11-2A (Part Level Submission) The stockholders’ equity accounts of Pronghorn Corp. on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 4,250 shares authorized) $255,000 Common Stock ($3 stated value, 350,000 shares authorized) 875,000 Paid-in Capital in Excess of Par Value—Preferred Stock 12,750 Paid-in Capital in Excess of Stated Value—Common Stock 560,000 Retained Earnings 686,000 Treasury Stock (4,250 common shares) 34,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 5,440 shares of common stock for $32,640. Mar. 20 Purchased 1,500 additional shares of common treasury stock at $9 per share. Oct. 1 Declared a 6% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.50 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 $275,600. Paid the dividend declared on December 1. Collapse question part (a) Correct answer. Your answer is correct. Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer (To record net income) Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer (To close cash dividends) Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer (To record payment of cash dividends payable) Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 3 of 3 used Collapse question part (b) Enter the beginning balances in the accounts and post the journal entries to the stockholders’ equity accounts. (Post entries in the order of journal entries posted in the previous part. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.) Preferred Stock Common Stock Paid-in Capital in Excess of Par Value—Preferred Stock Paid-in Capital in Excess of Stated Value—Common Stock Retained Earnings Cash Dividends Treasury Stock
Explanation / Answer
Answers
Date
Accounts Title
Debit $
Credit $
Working
01-Feb
Cash
32640
[Cash received]
Common Stock
16320
[5440 shares x $3 stated value per share]
Paid in Capital in excess of stated value - Common Stock
16320
[32640 - 16320]
(common stock issued)
20-Mar
Treasury Stock
13500
[1500 shares x $9]
Cash
13500
01-Oct
Dividends
15300
[$255000 x 6%]
Dividends payable
15300
(preferred stock declared)
01-Nov
Dividends payable
15300
Cash
15300
(preference dividend paid)
01-Dec
Dividends
145679
[$875000/$3 = 291660 shares issued - 4250 treasury stock - 1500 treasury stock + 5440 shares issued = 291357 shares outstanding
Dividends payable
145679
[291357 x 0.5 per share]
(common stock dividend declared)
31-Dec
Income Summary
275600
Retained earnings
275600
(net income closed)
31-Dec
Dividends payable
145679
Cash
145679
(dividend paid to common stockholders)
31-Dec
Retained earnings
160979
[15300 + 145679]
Dividends
160979
(dividend paid to common stockholders)
--Amounts are in “ $ “
--31 Dec 17 = Ending Balances
Preferred Stock
31-Dec-17
$ 2,55,000.00
01-Jan-17
255000
Total
255000
Total
255000
Common Stock
31-Dec-17
891320
01-Jan-17
875000
01-Feb-17
16320
Total
891320
Total
891320
Paid in Capital In excess of par value - Preferred stock
31-Dec-17
12750
01-Jan-17
12750
Total
12750
Total
12750
Paid in Capital In excess of stated value - Common Stock
31-Dec-17
576320
01-Jan-17
560000
01-Feb-17
16320
Total
576320
Total
576320
Retained Earnings
31-Dec-17
160979
01-Jan-17
686000
31-Dec-17
800621
31-Dec-17
275600
Total
961600
Total
961600
Treasury Stock
01-Jan-17
34000
31-Dec-17
47500
20-Mar-17
13500
Total
47500
Total
47500
Date
Accounts Title
Debit $
Credit $
Working
01-Feb
Cash
32640
[Cash received]
Common Stock
16320
[5440 shares x $3 stated value per share]
Paid in Capital in excess of stated value - Common Stock
16320
[32640 - 16320]
(common stock issued)
20-Mar
Treasury Stock
13500
[1500 shares x $9]
Cash
13500
01-Oct
Dividends
15300
[$255000 x 6%]
Dividends payable
15300
(preferred stock declared)
01-Nov
Dividends payable
15300
Cash
15300
(preference dividend paid)
01-Dec
Dividends
145679
[$875000/$3 = 291660 shares issued - 4250 treasury stock - 1500 treasury stock + 5440 shares issued = 291357 shares outstanding
Dividends payable
145679
[291357 x 0.5 per share]
(common stock dividend declared)
31-Dec
Income Summary
275600
Retained earnings
275600
(net income closed)
31-Dec
Dividends payable
145679
Cash
145679
(dividend paid to common stockholders)
31-Dec
Retained earnings
160979
[15300 + 145679]
Dividends
160979
(dividend paid to common stockholders)