Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $15 par $652,500...

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Answered Same DayOct 26, 2021

Answer To: Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in...

Khushboo answered on Nov 01 2021
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Stockholders' Equity Section of Balance Sheet
The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year:
    Common Stock, $15 par
    $652,500
    Paid-In Capital from Sale of Treasury Stock
    26,800
    Paid-In Capital in Excess of Par—Common Stock
    17,400
    Retained Earnings
    1,024,000
    Treasury Stock
    13,490

Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 710 shares have been reacquired.
    Goodale Properties Inc.
    Stockholders' Equity
    June 30, 20XX
    Paid-In Capital:
    
    
    
    Common stock $15 Par (80000 shares authorized, 43500 share issued) 
    $652,500
    
    
     Excess of issue price over par
    17,400
    
    
     Paid in capital from common stock
    
    $669,900
    
     Sale of treasury stock
    26,800
    
    
    Total Paid-In Capital
    
    $696,700
    
     Retained earnings
    1,024,000
    
    
    Total
    
    $1720,700
    
     Treasury stock
    13,490
    
    
    Total Stockholders' Equity
    
    
    $1707210
Retained Earnings Statement
Sumter Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended January 31, 20Y2:
    Retained earnings, February 1, 20Y1
    $380,200
    Net income
    45,600
    Cash dividends declared
    8,200
    Stock dividends declared
    15,500
Prepare a retained earnings statement for the fiscal year ended January 31, 20Y2.
    Sumter Pumps Corporation
    Retained Earnings Statement
    For the Year Ended January 31, 20Y2
     Retained earnings Feb 1, 20Y1
    
    $380,200
     Net income
    $45,600
    
     Cash dividend declared
    8,200
    
     Stock dividend declared
    15,500
    
     Retained earnings Jan 31, 20Y2
    
    $402,100
Selected Stock Transactions
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:
    Preferred 2% Stock, $150 par (60,000 shares authorized, 30,000 shares issued)
    $4,500,000
    Paid-In Capital in Excess of Par—Preferred Stock
    720,000
    Common Stock, $15 par (600,000 shares authorized, 270,000 shares issued)
    4,050,000
    Paid-In Capital in Excess of Par—Common Stock
    530,000
    Retained Earnings
    20,776,000
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
a. Issued 60,000 shares of common stock at $20, receiving cash.
b. Issued 15,000 shares of preferred 2% stock at $170.
c. Purchased 36,000 shares of treasury common for $17 per share.
d. Sold 18,000 shares of treasury common for $20 per share.
e. Sold 12,000 shares of treasury common for $15 per share.
f. Declared cash dividends of $3.00 per share on preferred stock and $0.06 per share on common stock.
g. Paid the cash dividends.
Required:
Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.
a.  Issued 60,000 shares of common stock at $20, receiving cash.
     a.
    Cash 
    $1,200,000
    
    
     Common Stock
    
    900,000
    
     Paid in capital in excess of par common stock
    
    300,000
b.  Issued 15,000 shares of preferred 2% stock at $170.
     b.
      Cash
    $2,550,000
    
    
      Preferred Stock
    
    2,250,000
    
      Paid in capital in excess of par- preferred stock
    
    300,000
c. Purchased 36,000 shares of treasury common for $17 per share..
     c.
    Treasury Stock 
    612,000
    
    
      Cash
    
    612,000
d.  Sold 18,000 shares of treasury common for $20 per share.
     
     Cash
    360,000
    
    
     Treasury Stock
    
    306,000
    
     Paid in capital from treasury stock
    
    54,000
e.  Sold 12,000 shares of treasury common for $15 per...
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