PROBLEM 2
The following information isavailable for Grey Goose Inc.:
Beginning retainedearnings $600,000
Cash dividendsdeclared 60,000
Net income for2014 120,000
Stock dividenddeclared 15,000
Understatement of lastyear's depreciationexpense 30,000
Instructions
Based on the precedinginformation, prepare a retained earnings statement for 2014 in thebox below.
GREYGOOSE INC.
RetainedEarnings Statement
For theYear Ended December 31, 2014
PROBLEM 3
Timber Ridge Corporationwas organized on January 1, 2013. During its first year, thecorporation issued 40,000 shares of $5 par value preferred stockand 400,000 shares of $1 par value common stock. At December 31,the company declared the following cash dividends:
2013 $ 8,000
2014 $30,000
2015 $70,000
Instructions
(a) Showthe allocation of dividends to each class of stock, assuming thepreferred stock dividend is 5% and not cumulative.
(b) Showthe allocation of dividends to each class of stock, assuming thepreferred stock dividend is 6% and cumulative.
(c) Journalize the declaration of the cashdividend at December 31, 2015 using the assumption of part(b).
(a) Preferred Common Total
2013
2014
2015
(b) Preferred Common Total
2013
2014
2015
(c)
Date
Account
Debit
Credit
PROBLEM 2
The following information isavailable for Grey Goose Inc.:
Beginning retainedearnings $600,000
Cash dividendsdeclared 60,000
Net income for2014 120,000
Stock dividenddeclared 15,000
Understatement of lastyear's depreciationexpense 30,000
Instructions
Based on the precedinginformation, prepare a retained earnings statement for 2014 in thebox below.
GREYGOOSE INC.
RetainedEarnings Statement
For theYear Ended December 31, 2014
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PROBLEM 3
Timber Ridge Corporationwas organized on January 1, 2013. During its first year, thecorporation issued 40,000 shares of $5 par value preferred stockand 400,000 shares of $1 par value common stock. At December 31,the company declared the following cash dividends:
2013 $ 8,000
2014 $30,000
2015 $70,000
Instructions
(a) Showthe allocation of dividends to each class of stock, assuming thepreferred stock dividend is 5% and not cumulative.
(b) Showthe allocation of dividends to each class of stock, assuming thepreferred stock dividend is 6% and cumulative.
(c) Journalize the declaration of the cashdividend at December 31, 2015 using the assumption of part(b).
(a) Preferred Common Total
2013
2014
2015
(b) Preferred Common Total
2013
2014
2015
(c)
Date | Account | Debit | Credit |