Saturday 7 December 2013

At September 30, the end of Excel Company’s third quarter, the following stockholders’ equity accounts are reported. Common stock, $12 par value $ 360,000 Paid-in capital in excess of par value, common stock 90,000 Retained earnings 320,000 In the fourth quarter, the following entries related to its equity are recorded. Date General Journal Debit Credit Oct. 2 Retained Earnings 70,000 Common Dividend Payable 70,000 Oct. 25 Common Dividend Payable 70,000 Cash 70,000 Oct. 31 Retained Earnings 87,000 Common Stock Dividend Distributable 42,000 Paid-In Capital in Excess of Par Value, Common Stock 45,000 Nov. 5 Common Stock Dividend Distributable 42,000 Common Stock, $12 Par Value 42,000 Dec. 1 Memo—Change the title of the common stock account to reflect the new par value of $4. Dec. 31 Income Summary 290,000 Retained Earnings 290,000 Required: 2. Complete the following table showing the equity account balances at each indicated date (include the balances from September 30).

At September 30, the end of Excel Company’s third quarter, the following stockholders’ equity accounts are reported.

 
  Common stock, $12 par value $ 360,000  
  Paid-in capital in excess of par value, common stock   90,000  
  Retained earnings   320,000  


In the fourth quarter, the following entries related to its equity are recorded.

Date General Journal Debit Credit
Oct. 2   Retained Earnings 70,000       
        Common Dividend Payable   70,000     
       
Oct. 25  Common Dividend Payable 70,000       
        Cash   70,000     
       
Oct. 31  Retained Earnings 87,000       
        Common Stock Dividend Distributable   42,000     
        Paid-In Capital in Excess of Par Value, Common Stock   45,000     
       
Nov. 5  Common Stock Dividend Distributable 42,000       
        Common Stock, $12 Par Value   42,000     
       
Dec. 1  Memo—Change the title of the common stock account to     reflect the new par value of $4.    
       
Dec. 31  Income Summary 290,000       
        Retained Earnings   290,000     


Required:
2.
Complete the following table showing the equity account balances at each indicated date (include the balances from September 30).

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