Question

In: Accounting

Retained Earnings: Transactions and Statement The stockholders’ equity of Ranger Corporation at January 1 appears below:...

Retained Earnings: Transactions and Statement

The stockholders’ equity of Ranger Corporation at January 1 appears below:

Common stock, $10 par value, 200,000 shares authorized;
80,000 shares issued and outstanding $800,000
Paid-in capital in excess of par value 480,000
Retained earnings 305,000

During the year, the following transactions occurred:

May 12 Declared a 15 percent stock dividend; market value of the common stock was $22 per share.
June 6 Issued the stock dividend declared on May 12.
Dec. 5 Declared a cash dividend of $1.50 per share.
30 Paid the cash dividend declared on December 5.

Required

a. Prepare journal entries to record the foregoing transactions.

General Journal
Date Description Debit Credit
May 12 AnswerStock DividendsStock Dividends DistributablePaid-in-Capital in Excess of Par ValueCommon StockCash DividendsDividends PayableCash Answer Answer
Stock Dividends Distributable Answer Answer
AnswerStock DividendsStock Dividends DistributablePaid-in-Capital in Excess of Par ValueCommon StockCash DividendsDividends PayableCash Answer Answer
Declared stock dividend.
Jun.06 AnswerStock DividendsStock Dividends DistributablePaid-in-Capital in Excess of Par ValueCommon StockCash DividendsDividends PayableCash Answer Answer
Common Stock Answer Answer
Issued common shares as stock dividend.
Dec.05 AnswerStock DividendsStock Dividends DistributablePaid-in-Capital in Excess of Par ValueCommon StockCash DividendsDividends PayableCash Answer Answer
AnswerStock DividendsStock Dividends DistributablePaid-in-Capital in Excess of Par ValueCommon StockCash DividendsDividends PayableCash Answer Answer
Declared a cash dividend on common stock outstanding.
Dec.30 AnswerStock DividendsStock Dividends DistributablePaid-in-Capital in Excess of Par ValueCommon StockCash DividendsDividends PayableCash Answer Answer
AnswerStock DividendsStock Dividends DistributablePaid-in-Capital in Excess of Par ValueCommon StockCash DividendsDividends PayableCash Answer Answer
Paid cash dividend declared on Dec. 5.

b. Prepare a statement of retained earnings. Net income for the year is $275,000.

Do not use negative signs with your answers.

RANGER CORPORATION
Statement of Retained Earnings
For the Year Ended December 31
Retained Earnings, January 1 Answer
AnswerNet IncomeRetained Earnings, December 31Cash Dividends Declared Answer
Answer
AnswerNet IncomeRetained Earnings, December 31Cash Dividends Declared Answer
Stock Dividends Declared Answer Answer
AnswerNet IncomeRetained Earnings, December 31Cash Dividends Declared Answer

Solutions

Expert Solution

Requirement:1

General Journal
Date Description Debit Credit
May. 12 Retained Earnings [80000*15%*22] $ 264,000
Common Stock Dividend Distributable [80000*15%*10] $ 120,000
Paid-in capital in excess of par value-common stock [80000*15%*12] $ 144,000
( To record stock dividend declaration)
June. 6 Common Stock Dividend Distributable [80000*15%*10] $ 120,000
Common Stock $ 120,000
( To record stock dividend distribution)
Dec. 5 Cash Dividend (80000+(80000*15%))*1.5 $ 138,000
Dividend Payable-Common Stock $ 138,000
[To record cash dividend declared]
Dec. 30 Dividend Payable-Common Stock $ 138,000
Cash $ 138,000
[To record cash dividend paid]

Requirement:2

RANGER CORPORATION
Statement of Retained Earnings
For the Year Ended December 31
Retained Earnings, January 1 $                     305,000
Add:Net Income $                     275,000
Less:
Cash Dividends Declared 138000
Stock Dividends Declared 264000 $                   (402,000)
Retained Earnings, December 31 $                     178,000

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Retained Earnings: Transactions and Statement The stockholders’ equity of Striker Corporation at January 1 appears below:...
Retained Earnings: Transactions and Statement The stockholders’ equity of Striker Corporation at January 1 appears below: Common stock, $10 par value, 300,000 shares authorized; 105,000 shares issued and outstanding $800,000 Paid-in capital in excess of par value 480,000 Retained earnings 305,000 During the year, the following transactions occurred: May 12 Declared a 9 percent stock dividend; market value of the common stock was $21 per share. June 6 Issued the stock dividend declared on May 12. Dec. 5 Declared a...
Retained Earnings: Transactions and Statement The stockholders’ equity of Elson Corporation at January 1 is shown...
Retained Earnings: Transactions and Statement The stockholders’ equity of Elson Corporation at January 1 is shown below: 5 Percent preferred stock, $100 par value, 10,000 shares authorized; 6,000 shares issued and outstanding $600,000 Common stock, $5 par value, 200,000 shares authorized; 70,000 shares issued and outstanding $350,000 Paid-in capital in excess of par value-Preferred stock 40,000 Paid-in capital in excess of par value-Common stock 300,000 Retained earnings 656,000 Total Stockholders' Equity $1,946,000 The following transactions, among others, occurred during the...
Stockholders’ Equity: Transactions and Balance Sheet Presentation The stockholders’ equity of Summit Corporation at January 1...
Stockholders’ Equity: Transactions and Balance Sheet Presentation The stockholders’ equity of Summit Corporation at January 1 follows: 7 Percent preferred stock, $100 par value, 20,000 shares authorized; 5,000 shares issued and outstanding $500,000 Common stock, $15 par value, 100,000 shares authorized; 40,000 shares issued and outstanding 600,000 Paid-in capital in excess of par value-Preferred stock 24,000 Paid-in capital in excess of par value-Common stock 360,000 Retained earnings 325,000 Total Stockholders' Equity $1,809,000 The following transactions, among others, occurred during the...
Stockholders’ Equity: Transactions and Balance Sheet Presentation The stockholders’ equity of Summit Corporation at January 1...
Stockholders’ Equity: Transactions and Balance Sheet Presentation The stockholders’ equity of Summit Corporation at January 1 follows: 7 Percent preferred stock, $100 par value, 20,000 shares authorized; 5,000 shares issued and outstanding $500,000 Common stock, $15 par value, 100,000 shares authorized; 40,000 shares issued and outstanding 600,000 Paid-in capital in excess of par value-Preferred stock 24,000 Paid-in capital in excess of par value-Common stock 360,000 Retained earnings 325,000 Total Stockholders' Equity $1,809,000 The following transactions, among others, occurred during the...
16. When there are significant changes in stockholders equity, generally, a retained earnings statement is not...
16. When there are significant changes in stockholders equity, generally, a retained earnings statement is not sufficient, requiring a statement of stockholders’ equity to be prepared. a. True b. False 17. The equity reporting for a Limited Liability Corporation is similar to that of a partnership but the changes in capital ate shown on a statement of members’ equity. a. True b. False 18. When a partner invests noncash assets in a partnership, the assets are recorded at the partner’s...
Stockholders’ Equity Transactions, Journal Entries, and T-Accounts The stockholders’ equity of Fremantle Corporation at January 1...
Stockholders’ Equity Transactions, Journal Entries, and T-Accounts The stockholders’ equity of Fremantle Corporation at January 1 follows: 8 Percent preferred stock, $100 par value, 20,000 shares authorized; 4,000 shares issued and outstanding $400,000 Common stock, $1 par value, 10,000 shares authorized; 40,000 shares issued and outstanding 40,000 Paid-in capital in excess of par value-Preferred stock 200,000 Paid-in capital in excess of par value-Common stock 800,000 Retained earnings 560,000 Total Stockholders' Equity $2,000,000 The following transactions, among others, occurred during the...
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January...
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $10 par value, 300,000 shares authorized, 60,000 shares 600,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 960,000 From treasury stock 60,000 1,020,000 Retained earnings 696,000 2,316,000 Less: Treasury stock (6,000 shares) at cost 276,000 Total Stockholders’ Equity 2,040,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of...
Stockholders’ Equity: Transactions and Statement The stockholders’ equity section of Night Corporation’s balance sheet at January...
Stockholders’ Equity: Transactions and Statement The stockholders’ equity section of Night Corporation’s balance sheet at January 1 follows: Common stock, $5 par value, 300,000 shares authorized, 60,000 shares $300,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value $480,000 From treasury stock 30,000 510,000 Retained earnings 348,000 1,158,000 Less: Treasury stock (6,000 shares) at cost 138,000 Total Stockholders’ Equity $1,020,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of...
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January...
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $8 par value, 300,000 shares authorized, 60,000 shares 480,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 720,000 From treasury stock 45,000 765,000 Retained earnings 522,000 1,767,000 Less: Treasury stock (6,000 shares) at cost 207,000 Total Stockholders’ Equity 1,560,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of...
1-The statement of changes in stockholders' equity: Multiple Choice Is part of the statement of retained...
1-The statement of changes in stockholders' equity: Multiple Choice Is part of the statement of retained earnings. Shows only the ending balances in stockholders' equity. Describes changes in paid-in capital and retained earnings subcategories. Does not include changes in treasury stock. Is reported by very few companies. 2- Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on June 30 for $40 per share. On July 20,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT