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The ledger of Waite Corporation at December 31 2017 after the books have been closed contains the following stockholders equity accounts Preferred Stock 10000 shares issued

The ledger of Waite Corporation at December 31, 2017, after the books have been closed, contains the following stockholders equity accounts. Preferred Stock (10,000 shares issued) .......................................... $1,000,000 Common Stock (300,000 shares issued) ........................................ 1,500,000 Paid-in Capital in Excess of Par Value-Preferred Stock ................... 200,000 Paid-in Capital in Excess of Stated Value-Common Stock ............... 1,600,000 Retained Earnings ................................................................. 2,860,000 A review of the accounting records reveals this information: 1. Preferred stock is 8%, $100 par value, noncumulative. Since January 1, 2016, 10,000 shares have been outstanding; 20,000 shares are authorized. 2. Common stock is no-par with a stated value of $5 per share; 600,000 shares are authorized. 3. The January 1, 2017, balance in Retained Earnings was $2,380,000. 4. On October 1, 60,000 shares of common stock were sold for cash at $9 per share. 5. A cash dividend of $400,000 was declared and properly allocated to preferred and common stock on November 1. No dividends were paid to preferred stockholders in 2016. 6. Net income for the year was $880,000. 7. On December 31, 2017, the directors authorized disclosure of a $160,000 restriction of retained earnings for plant expansion. (Use Note A.) Instructions (a) Reproduce the Retained Earnings account (T-account) for the

Apr 10 2020 Read more Less More

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