In: Accounting
Exercise 15-18 (Part Level Submission)
Wildhorse Company reported the following amounts in the stockholders’ equity section of its December 31, 2016, balance sheet.
Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) | $200,000 | |
Common stock, $5 par (102,000 shares authorized, 20,400 shares issued) | 102,000 | |
Additional paid-in capital | 134,000 | |
Retained earnings | 480,000 | |
Total | $916,000 |
During 2017, Wildhorse 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. These dividends had been declared on December 31, 2016. | |
2. | Purchased 1,800 shares of its own outstanding common stock for $41 per share. Wildhorse uses the cost method. | |
3. | Reissued 700 treasury shares for land valued at $30,200. | |
4. | Issued 530 shares of preferred stock at $106 per share. | |
5. | Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $48 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 are payable in 2018. please show your work so i can understand the process |
Trans | Accounts title | Dr | Cr |
1 | Dividend payable-Common (20400*2) | 40800 | |
Dividend payable- Preferred (2000*10) | $20,000 | ||
Cash | $60,800 | ||
2 | Treasury Stock | 73800 | |
Cash (1800*41) | 73800 | ||
3 | Cash | $30,200 | |
Paid in capital in excess-Treasury stock/Additional paid in capital | $1,500 | ||
Treasury Stock (700*41) | 28700 | ||
4 | Cash (530*106) | 56180 | |
Preferred Stock | 53000 | ||
Additional paid in capital | 3180 | ||
5 | Stock Dividend (20400-1800+700)*10%*48 | 92640 | |
Stock Dividend Distributable | 92640 | ||
6 | Stock Dividend Distributable (20400-1100)*10%*48 | 92640 | |
Common Stock (20400-1100)*10%*5 | 9650 | ||
Additional paid in capital | 82990 | ||
7 | Cash dividend | 67760 | |
Dividend payable-Common (20400-1800+700+1930)*2 | 42460 | ||
Dividend payable- Preferred (2530*10) | 25300 | ||
Stockholder equity | |||
Preferred stock, 10%, $100 par (10,000 shares authorized, 2,530 shares issued) | $25,300 | ||
Common stock, $5 par (102,000 shares authorized, 22330 shares issued 21230 outstanding) | 111,650 | ||
Additional paid-in capital (134000+1500+3180+82990) | 221,670 | ||
Retained earnings (480000-67760-92740) | 319600 | ||
Less : Treasury stock (1100*41) | -45100 | ||
Total Stockholder equity | $633,120 |