The following information is from the accounts of Rockefeller,Inc. at
December 31, 2013.
Common Stock, $1 par value, 500,000shares authorized, $400,000
Paid-in Capital in Excess of ParValue--Common Stock 650,000
Preferred Stock, $100 par value, 8%,10,000 shares
authorized 200,000
Retained Earnings at January 1, 2013 600,000
Treasury Stock (10,000 commonshares) 85,000
Paid-in Capital in Excess of ParValue--Preferred Stock 310,000
Cash dividends declared on preferredstock 80,000
Prior period adjustment that wasrecorded as a debit to
RetainedEarnings for an error discovered from 2010â¦â¦â¦â¦ 30,000
Net income for2013 750,000
INSTRUCTIONS
a.Prepare a statement of retainedearnings at December 31, 2013.
b.Prepare the stockholders' equitysection at December 31, 2013.
The following information is from the accounts of Rockefeller,Inc. at
December 31, 2013.
Common Stock, $1 par value, 500,000shares authorized, $400,000
Paid-in Capital in Excess of ParValue--Common Stock 650,000
Preferred Stock, $100 par value, 8%,10,000 shares
authorized 200,000
Retained Earnings at January 1, 2013 600,000
Treasury Stock (10,000 commonshares) 85,000
Paid-in Capital in Excess of ParValue--Preferred Stock 310,000
Cash dividends declared on preferredstock 80,000
Prior period adjustment that wasrecorded as a debit to
RetainedEarnings for an error discovered from 2010â¦â¦â¦â¦ 30,000
Net income for2013 750,000
INSTRUCTIONS
a.Prepare a statement of retainedearnings at December 31, 2013.
b.Prepare the stockholders' equitysection at December 31, 2013.
Related questions
Winslow Corporation reported stockholders' equity on December 31of the prior year as follows:
Common stock, $5 par value, 1,000,000 shares authorized, 500,000shares issued | $2,500,000 |
Paid-in capital in excess of par, common stock | 1,000,000 |
Retained earnings | 3,140,000 |
The following selected transactions occurred during the currentyear:
Jan 17 | Retained Earnings | 400,000 | |
Common Dividend Payable | 400,000 | ||
Feb 5 | Common Dividend Payable | 400,000 | |
Cash | 400,000 | ||
Feb 28 | Retained Earnings | 300,000 | |
Common Stock Dividend Distributable | 100,000 | ||
Paid-In Capital in Excess of Par Value | 200,000 | ||
March 14 | Common Stock Dividend Distributable | 100,000 | |
Common Stock, $5 par value | 100,000 | ||
March 25 | Memo â 2 for 1 stock split, Change the title | ||
Of the Common Stock account to reflect | |||
The new par value of $2.50 | |||
March 31 | Income Summary | 600,000 | |
Retained Earnings | 600,000 |
Using the schedule on the template, record the abovetransactions in the proper columns and calculate the endingbalances for each item.
Prepare a Stockholderâs Equity section of the Balance Sheet, ingood form, as of December 31 of the current year.
| The stockholdersâequity section of Birdman Corp.âs balance sheet at December 31 ispresented here. | |||||||
| Birdman Corp. | |||||||
| Balance Sheet (partial) | |||||||
| Stockholdersâ equity | |||||||
| Paid-incapital | |||||||
| Preferred stock, cumulative,10,000 shares authorized, 6,000 shares issued and outstanding | $ 640,000 | ||||||
| Common stock, no par, 735,776shares authorized, 569,000 shares issued | 2,400,000 | ||||||
| Totalpaid-in capital | 3,040,000 | ||||||
| Retainedearnings | 1,191,000 | ||||||
| Total paid-incapital and retained earnings | 4,231,000 | ||||||
| Less:Treasury stock (5,200 common shares) | 30,933 | ||||||
| Total stockholdersâequity | $4,200,067 | ||||||
| From a review of thestockholdersâ equity section, answer the following questions: | |||||||
| (a) How many shares of commonstock are outstanding? | |||||||
| Common stock outstanding | shares | ||||||
| (b) Assuming there is a statedvalue, what is the stated value of the common stock? | |||||||
| The stated value of the commonstock | per share | ||||||
| (c) What is the par value ofthe preferred stock? | |||||||
| The par value of the preferredstock | per share | ||||||
| (d) If the annual dividend onpreferred stock is $57,600, what is the dividend rate on preferredstock? | |||||||
| The dividend rate | % | ||||||
| (e) If dividends of $74,800were in arrears on preferred stock, what would be the balancereported for retained earnings? | |||||||
| The Retained Earningsbalance | |||||||
