Question

Journalize the entries to record the following transactions for Wilderness Resorts Inc. Refer to the Chart of Accounts for exact wording of account titles. Jan. 31 Reacquired 21,900 shares of its common stock at $31 per share. Apr. 20 Sold 11,300 of the reacquired shares at $41 per share. Oct. 4 Sold the remaining shares at $27 per share. Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. Two hundred fifty thousand shares of common stock are authorized, and 15,100 shares have been reacquired. Common Stock, $50 par $10,650,000 Paid-In Capital from Sale of Treasury Stock 320,000 Paid-In Capital in Excess of Par—Common Stock 3,190,000 Retained Earnings 19,200,000 Treasury Stock 981,500 Rockwell Inc. reported the following results for the year ended June 30, 2016: Retained earnings, July 1, 2015 $3,965,000 Net income 742,000 Cash dividends declared 99,600 Stock dividends declared 48,900 Prepare a retained earnings statement for the fiscal year ended June 30, 2016. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers. The word “Less” is not required. Fairmount Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 3% stock, $150 par, and 67,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $60,400; second year, $83,800; third year, $155,280; fourth year, $171,740. Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0". 1st Year 2nd Year 3rd Year 4th Year Preferred stock (dividend per share) $ $ $ $ Common stock (dividend per share) $ $ $ $

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.

Part-1
Date	Account	Debit	Credit
Jan 31	Treasury Stock 21900*31	678900
	Cash		678900
	(Reacquired shares 21900)
Apr 20	Cash 11300*41	463300
	Treasury Stock 11300*31		350300
	Paid In capital-Treasury Stock		113000
Oct 4	Cash 10600*27	286200
	Paid In capital-Treasury Stock	42400
	Treasury Stock 10600*31		328600
Part-2
Equity Section:
	250000 Authorized Common Stock
	Common Stock, $50 at par		10650000
	Paid in capital in excess of par-common stock		3190000
	Paid in capital from sale of treasury stock		320000
	Total paid in capital		14160000
	Retained earning		19200000
	Treasury Stock		-981500
	Total Equity		32378500
Part-3
	Retained Earning , July 1 2015	3965000
	add: Net Income	742000	4707000
	Cash Dividend	99600
	Stock Dividend	48900	148500
	Retained Earning, June 30 2016		4558500
Part-4
	Preferred share dividend is 4.5 per share (150*3%) and will be given before Common shareholders.
	Hence preferred share dividend every year=	20000*4.5=90000
		Total Dividend	Preferred	Common		Balance Preferred
	First Year	60400	60400	0		90000-60400=29600
	Second	83800	83800	0		90000+29600-83800=35800
	Third	155280	90000+35800=125800	29480
	Fourth	171740	90000	81740
	Per Share
			Preferred	Common
			Total Divi/20000	Total Divi/67000
	First Year		3.02	0
	Second		4.19	0
	Third		6.29	0.44
	Fourth		4.5	1.22