Problem 14-4A On January 1, 2017, Ven Corporation had the following stockholders
ID: 2572897 • Letter: P
Question
Problem 14-4A On January 1, 2017, Ven Corporation had the following stockholders' equity accounts Common Stock (no par value, 88,300 shares issued and outstanding) Retained Earnings $1,450,000 543,000 uring the year, the following transactions occurred per share to stockholders of record on February 15, payable March 1. Feb. 1 Declared a $1 cash dividend Mar. 1 Paid the dividend declared in February Apr. 1 Announced a 3-for-1 stock splt. Prior to the split, the market price per share was $40 uly 1 Decl ared a 6% stock dividend to stockholders of record on July 15, distributable July 31, On July 1, the market price of the stock was S12 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.40 per share dividend to stockholders of record on December 15, payable January 5, 2018 31 Determined that net income for the year was $357,000. (Enter account name only and do not provide descriptive information. Round answers to O decimal places, e.g. s (a) Prepare the stockholders' equity section of the balance sheet at March 31 250 VEN CORPORATION Partlal Balance SheetExplanation / Answer
SHAREHLDER'S EQUITY SECTION AS ON MARCH 31ST CALCULATION OF BALANCE IN RETAINED EARNINGS Retaiend Earning $ 5,43,000 Less : Declared Cash Dividend @ $1 Per shares $ 88,300 88,300 Shares X $ 1 = Net Balance After Deividend $ 4,54,700 PARTIAL BALANCE SHEETAS ON MARCH 31ST Shareholder'S Equity Amount Common Stock $ 14,50,000 Retained Earnings $ 4,54,700 Total $ 19,04,700 PARTIAL BALANCE SHEETAS ON JUNE 30th Shareholder'S Equity Amount Common Stock $ 14,50,000 Retained Earnings $ 4,54,700 Total $ 19,04,700 PARTIAL BALANCE SHEETAS ON SEPTEMBER 30th Shareholder'S Equity Amount Common Stock $ 14,50,000 Add : Stock Dividend 6% $ 87,000 $ 15,37,000 Excess of Capital Over Par Value $ 87,000 $ 16,24,000 Retained Earnings $ 4,54,700 Less: Stock Dividends $ 1,74,000 $ 2,80,700 Total $ 19,04,700 PARTIAL BALANCE SHEETAS ON DECEMBER 31, 2017 Shareholder'S Equity Amount Common Stock $ 16,24,000 Retained Earnings $ 6,00,261 Total $ 22,24,261 CALCULATION OF NEW RETAINED EARNINGS Retained Earnings $ 2,80,700 Less : Dividend Paid $ 37,439 Add: Net Income $ 3,57,000 Closing Retained Earnings = $ 6,00,261 Shares Outstanding = Original Shares = 88,300 Numbers 6% Stock Dividend 5,298 Numbers Total Shares 93,598.00 Numbers Dividend @ 0.40 $ 37,439