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In: Accounting

The stockholders' equity section of Thomas Corporation's balance sheet at December 31, 2017, appears below: ...

The stockholders' equity section of Thomas Corporation's balance sheet at December 31, 2017, appears below:

Preferred Stock, 6%, $15 stated value, 50,000 shares authorized;

10,000 issued and outstanding 150,000

Paid-in capital in excess of stated value-preferred stock 30,000

Common stock, $10 par value, 400,000 shares authorized;

250,000 issued and outstanding 2,500,000

Paid-in capital in excess of par value-common stock 1,200,000

Retained earnings 600,000

During 2018, the following stock transactions occurred:

Jan. 18 Issued 50,000 shares of common stock at $30 per share.

Apr. 20 Purchased 25,000 shares of Thomas Corporation's common stock at $24 per share.

June 15 Issued 10,000 shares of preferred stock at $20 per share.

Oct. 1 Declared the preferred stock cash dividend.

Oct. 1 Declared a $0.41 per share cash dividend to common stockholders of record on October 15.

Dec. 1 Paid both dividends declared on October 1.

Net Income for the year was $100,000.

Requirements:

Enter beginning balances in ledger accounts.

Prepare the journal entries to record the above transactions.

Post the entries to the ledger T-accounts. Add accounts as needed.

Calculate the updated Retained Earnings balance.

Prepare the 2018 stockholders' equity section of the Balance Sheet for Thomas Corporation.

Note: (a) & (c) Ledger T-accounts in separate document

Expert Solution

Beginning balances in ledger accounts:

Journal entries:

Posting the entries to ledger T-accounts:

Updated retained earnings balance is $569,250.

Stockholders' equity section of the balance sheet.

ekkarill92 answered 1 year ago

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