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During 2017 Pina took part in the following transactions concerning stockholders equity. 1. Paid the annual...

During 2017 Pina took part in the following transactions concerning stockholders equity.

1. Paid the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. There dividends had been declared on December 31, 2016.
2. Purchased 1600 shares of its own outstanding common stock for $43 per share. Pina uses the cost method.
3. Reissued 800 treasury shares for land valued at $36200.
4. Issued 530 shares of preferred stock at $105 per share.
5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $47 per share.
6. Issued the stock dividend.
7. Declared the annual 2017 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends on common stock. These dividends are payable on 2018.

a. Prepare journal entries to record the transactions described above.
b. Prepare the December 31, 2017 stockholders equity section. Assume 2017 net income was $316000.

Pina Company reported the following amounts in the stockbokders equity sections of its December 31, 2016 balance sheet.
Preferred stock 10% $100 par (10000 shares authorized 2000 shares issued). $200000
Common Stock $5 par (98500 shares authorized 19700 shares issued). 98500
Additional paid in capital. 135000
Retained Earnings. 479000
Total. 912500

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ekkarill92 answered 1 year ago
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