126. A company had stockholders' equity on January 1 as follows: Common Stock, $10 par value, 1,000,000 shares authorized, 250,000 shares issued; Contributed Capital in Excess of Par Value, Common Stock, $750,000 and Retained Earnings of $2,700,000. On May 20, $1,500,000 worth of retained earnings was appropriated for a plant expansion to be constructed next year. Prepare the journal entry to record the appropriation.
127. A corporation began the current year with $250,000 of unappropriated retained earnings. During the current year it earned $120,000 of net (after-tax) income, declared $75,000 of cash dividends, paid $50,000 of the cash dividends and purchased treasury stock costing $40,000. Calculate the current year-end balance in retained earnings.
128. Marble Corporation had the following balances in its stockholders' equity accounts at December 31, 2012:
Common Stock, $10 par, 50,000 shares authorized, 20,000 shares issued
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$200,000
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Contributed Capital in Excess of Par Value, Common
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250,000
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Retained Earnings
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500,000
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Treasury Stock, 1,000 shares
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(20,000)
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Total stockholders’ equity
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$930,000
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The following transactions occurred during 2013:
February 3
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Sold and issued 3,000 shares of common stock for $22 per share.
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May 10
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Declared a $0.50 per share dividend on common stock.
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October 12
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Sold 500 shares of the treasury stock for $20 per share.
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December 31
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Net income for the year was determined to be $75,000
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Based on the above information, prepare a statement of stockholders' equity for 2013. Use the form below.
MARBLE CORPORATION
Statement of Stockholders’ Equity
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Common Stock
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Contributed Capital in Excess of Par Value, Common
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Retained Earnings
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Treasury Stock
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Total
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Balance, December 31, 2012
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$200,000
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$250,000
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$500,000
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$(20,000)
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$930,000
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Net income
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Balance, December 31, 2013
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129. During the current year, Quark Company earned $90,000 in income and paid cash dividends of $10,000 to preferred shareholders. Quark had 12,500 weighted-average shares of common stock outstanding for the year. Calculate the company's earnings per share.
130. A corporation had current year net income of $2,375,000. It paid preferred dividends of $80,000 cash and had 500,000 weighted-average shares of common stock outstanding. Calculate the corporation's earnings per share.