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The stockholder’s equity section of Doc Corporation’s balance as Paid-in Capital Preferred stock, 9%,$100 par value,...

The stockholder’s equity section of Doc Corporation’s balance as Paid-in Capital

Preferred stock, 9%,$100 par value, non-cumulative,
10,000 shares authorized, 5,000 shares issued
and outstanding............................................................

Common stock, $10 par value, 500,000 shares Authorized, 90,000 shares issued and

90,000 shares outstanding............................................... Paid in capital in excess of par- common stock.......................

Total Paid-in Capital
Retained earnings.........................................................

Total Stockholder’s Equity
The following transactions affecting stockholder’s equity occurred during the year:

of January 1, 2019 is presented below:

$ 500,000

900,000

200,000 $ 1,600,000 900,000 $ 2,500,000

   

Jan 15 Mar 1 Apr15 May 1 Oct 1

Declared the annual cash dividend on the preferred stock, payable April 15.

Dec 31
Dec 31 Instructions:

Declared a $2 per share cash dividend on the common stock outstanding payable April 15.

Paid the cash dividends declared on January 15 and March 1.

Issued 10,000 shares of common stock for $20 per share.

Declared and issued a 10% stock dividend on the common stock outstanding. The market value of the common stock was $25.

Net Income for the year was $700,000. Closed the income summary account. Close the dividend accounts.

  1. Prepare journal entries for the above .

  2. Post to the appropriate ledger accounts

  3. Prepare a stockholder equity section for December 31, 2019

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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