Problem 11-2A (Part Level Submission) The stockholders\' equity accounts of Flin

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 Retained Earnings Treasury Stock (5,000 common shares) $300,000 1,000,000 15,000 480,000 686,500 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 $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

Journal entries

Flint Corporation Balance sheet (partial) as at December 31, 2017 Stockholders' equity      Contributed capital        Prefered capital (8%,$100 par noncumulative shares, 300000        5,000 shares authorised)        Common stock ($4 stated value , 300,000 shares authorised) 1020000        Paid-in-capital in excess of par value - preferred stock 15000        Paid-in-capital in excess of stated value - common stock 490000     Total contributed capital 1825000     Retained earnings        Beginning balance on January 1, 2017 686500        Net income for the year 276100        Dividends paid -181800        Ending balance on December 31, 2017 780800      Treasury stock -47000 Total stockholders' equity 2558800

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