Problem 11-3A The stockholders\' equity accounts of Castle Corporation on Januar
ID: 2562498 • Letter: P
Question
Problem 11-3A The stockholders' equity accounts of Castle Corporation on January 1, 2017, were as follows. 384,000 1,500,000 140,000 1,450,000 1,750,000 52,500 Preferred Stock (8%, $48 par, cumulative, 10,000 shares authorized) Common Stock ($1 stated value, 2,050,000 shares authorized) Paid-in Capital in Excess of Par-Preferred Stock 1 Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (10,500 common shares) During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 25,000 shares of common stock for $124,000. Apr. 14 Sold 6,000 shares of treasury stock-common for $33,700. Sept. 3 Issued 4,900 shares of common stock for a patent valued at $35,100. Nov. 10 Purchased 1,100 shares of common stock for the treasury at a cost of $5,700. Dec. 31 Determined that net income for the year was $420,000. No dividends were declared during the year dournalize the transactions and the closing entry for net income. (Record journal entries in the order presented in the problen indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and . CreExplanation / Answer
Journal Entry
date
explanation
debit
credit
1-Feb
cash
124000
common stock
25000
paid in capital in excess of par-common stock
99000
14-Apr
cash
33700
treasury stock
30000
paid in capital in excess- treasury stock
3700
3-Sep
patent
35100
common stock
4900
paid in capital in excess of par-common stock
30200
10-Nov
treasury stock
5700
cash
5700
31-Dec
income summary statement
420000
retained earnings
420000
ledger accounts
preferred stock
date
explanation
debit
credit
balance
1-Jan
balance
384000
384000
common stock
1-Jan
balance
1500000
1-Feb
cash
25000
3-Sep
patent
4900
total
1529900
1529900
pain in capital in excess of par preferred stock
1-Jan
140000
140000
pain in capital in excess of par common stock
1-Jan
balance
1450000
1-Feb
cash
99000
3-Sep
patent
30200
31-Dec
total
1579200
1579200
paid in capital in excess of treasury stock
14-Apr
cash
30000
30000
retained earning
1-Jan
balance
1750000
31-Dec
income summary
420000
balance
2170000
2170000
treasury stock
1-Jan
balance
52500
14-Apr
cash
30000
10-Nov
cash
5700
total
58200
30000
28200
statement of shareholders equity
preferred stock
384000
common stock
1529900
pain in capital in excess of par preferred stock
140000
pain in capital in excess of par common stock
1579200
paid in capital in excess of treasury stock
30000
retained earning
2170000
less treasury stock
-28200
Total of shareholders equity
5804900
Journal Entry
date
explanation
debit
credit
1-Feb
cash
124000
common stock
25000
paid in capital in excess of par-common stock
99000
14-Apr
cash
33700
treasury stock
30000
paid in capital in excess- treasury stock
3700
3-Sep
patent
35100
common stock
4900
paid in capital in excess of par-common stock
30200
10-Nov
treasury stock
5700
cash
5700
31-Dec
income summary statement
420000
retained earnings
420000
ledger accounts
preferred stock
date
explanation
debit
credit
balance
1-Jan
balance
384000
384000
common stock
1-Jan
balance
1500000
1-Feb
cash
25000
3-Sep
patent
4900
total
1529900
1529900
pain in capital in excess of par preferred stock
1-Jan
140000
140000
pain in capital in excess of par common stock
1-Jan
balance
1450000
1-Feb
cash
99000
3-Sep
patent
30200
31-Dec
total
1579200
1579200
paid in capital in excess of treasury stock
14-Apr
cash
30000
30000
retained earning
1-Jan
balance
1750000
31-Dec
income summary
420000
balance
2170000
2170000
treasury stock
1-Jan
balance
52500
14-Apr
cash
30000
10-Nov
cash
5700
total
58200
30000
28200
statement of shareholders equity
preferred stock
384000
common stock
1529900
pain in capital in excess of par preferred stock
140000
pain in capital in excess of par common stock
1579200
paid in capital in excess of treasury stock
30000
retained earning
2170000
less treasury stock
-28200
Total of shareholders equity
5804900