Problem 11-2A (Part Level Submission) The stockholders\' equity accounts of Flin
ID: 2589960 • Letter: P
Question
Problem 11-2A (Part Level Submission) The stockholders' equity accounts of Flint Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $100 par noncumulative, 5,000 shares authorized) 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 $300,000 1,000,000 15,000 480,000 686,500 40,000 Retained Earnings Treasury Stock (5,000 common shares) 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 $7 per share. Oct. 1 Declared a 8% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.60 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 $276,100. Paid the dividend declared on December 1.Explanation / Answer
Preferred stock 01-Jan 300000 0 300000 31-Dec 300000 Paid in value in excess of par- preferred stock 01-Jan 15000 0 15000 31-Dec 15000 Common stock 01-Jan 1000000 01-Feb 20000 0 1020000 31-Dec 1020000 Paid in value in excess of par- common stock 01-Jan 480000 01-Feb 10000 0 490000 31-Dec 490000 Retained earnings 01-Jan 686500 31-Dec 276100 0 962600 Cash dividends 01-Oct 24000 (300000*8%) 01-Dec 149400 (249000*.6) 173400 0 Treasury stock 01-Jan 40000 20-Mar 7000 47000 0