Question

The stockholders’ equity accounts of Sheffield Corp. on January 1, 2022, were as follows.

Preferred Stock (8%, $100 par noncumulative, 5,000 shares authorized)		$450,000
Common Stock ($10 stated value, 800,000 shares authorized)		1,550,000
Paid-in Capital in Excess of Par Value—Preferred Stock		67,000
Paid-in Capital in Excess of Stated Value —Common Stock		800,000
Retained Earnings		810,000
Treasury Stock (8,400 common shares)		67,200

During 2022, the corporation had the following transactions and events pertaining to its stockholders’ equity.

Mar	1		Issued 6,000 shares of common stock for $90 per share.
June	22		Purchased 2,000 additional shares of common treasury stock at $11 per share.
Sept.	1		Declared a 8% cash dividend on preferred stock, payable October 1.
Oct.	1		Paid the dividend declared on September 1.
Dec.	1		Declared a $0.70 per share cash dividend to common stockholders of record on December 15, payable December 31, 2022.
	31		Determined that net income for the year was $130,000. Paid the dividend declared on December 1.

Journalize the transactions for the dates shown. Include entries to close net income and dividends to Retained Earnings. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

Date	Account Name			Debit	Credit
1, March	cash			$5,40,000
		common stock $10 Par			$60,000
		paid in capital			$4,80,000
22, June	Treasury stock			$22,000
		c ash			$22,000
1, Sept	Dividend			$36,000
		Dividend payable			$36,000
1, Oct	Dividend payable			$36,000
		c ash			$36,000
15, Dec	Dividend			$1,05,420
		Dividend payable			$1,05,420
31, Dec	Dividend payable			$1,05,420
		c ash			$1,05,420
31, Dec	Retained earning			$1,41,420
		dividend			$1,41,420
31, Dec	Net income			$1,30,000
		Retained Earning			$1,30,000

150600	Common stock outstanding 31 dec
0.7
105420