At September 30, the end of Beijing Company’s third quarter, the following stock
ID: 2593441 • Letter: A
Question
At September 30, the end of Beijing Company’s third quarter, the following stockholders’ equity accounts are reported. Common stock, $12 par value $ 360,000 Paid-in capital in excess of par value, common stock 90,000 Retained earnings 400,000 In the fourth quarter, the following entries related to its equity are recorded: Date General Journal Debit Credit Oct. 2 Retained Earnings 70,000 Common Dividend Payable 70,000 Oct. 25 Common Dividend Payable 70,000 Cash 70,000 Oct. 31 Retained Earnings 95,000 Common Stock Dividend Distributable 46,000 Paid-In Capital in Excess of Par Value, Common Stock 49,000 Nov. 5 Common Stock Dividend Distributable 46,000 Common Stock, $12 Par Value 46,000 Dec. 1 Memo—Change the title of the common stock account to reflect the new par value of $4. Dec. 31 Income Summary 290,000 Retained Earnings 290,000 Required: 2. Complete the following table showing the equity account balances at each indicated date.
Explanation / Answer
Calculations and explanations:
1. Retained earnings on November 5 = 360,000+46,000 = 406,000
2. Paid in capital on Oct 31 = 90,000+49,000 = 139,000
3. Retained earnings on Oct 2 = 400,000-70,000 = 330,000
4. Retained earnings on Oct 31 = 330,000 - 95,000 = 235,000
5. Retained earnings on dec 31 = 235,000+290,000
6. Total equity = common stock+dividend distributable+paid-in capital+retained earnings
Oct 2 Oct 25 Oct 31 Nov 5 Dec 1 Dec 31 Common Stock 360,000.00 360,000.00 360,000.00 406,000.00 406,000.00 406,000.00 Common stock dividend distributable 0.00 0.00 46,000.00 0.00 0.00 0.00 Paid-in capital in excess of par, Common stock 90,000.00 90,000.00 139,000.00 139,000.00 139,000.00 139,000.00 Retained earnings 330,000.00 330,000.00 235,000.00 235,000.00 235,000.00 525,000.00 Total equity 780,000.00 780,000.00 780,000.00 780,000.00 780,000.00 1,070,000.00