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#18) Gifford Corporation earned net income of $125,000 during the year ended December 31, 2014. On December 15, Gifford declared the annual cash dividend on its 4% preferred stock (15,000 shares with total par value of $150,000) and a $1.00 per share cash dividend on its common stock (45,000 shares with total par value of $450,000). Gifford then paid the dividends on January 4, 2015.

Journalize the following for Gifford Corporation:

a. Declaring the cash dividends on December 15, 2014

b. Paying the cash dividends on Januaary 4, 2015

Did Retained Earnings increase or decrease during 2014? By how much?

a. Journalize the Gifford Corporation the declaration for the cash dividends on December 15, 2014. (Record debits fir, then credits. Exclude explanations from any journal entries.)

Journal Entry

Accounts Debits Credits

2014

Dec 15 ( Accounts Payable, Cash, Dividends Payable, retained Earings) ________ _______

____________________________________________________ ________ _______

_____________________________________________________ _______ _______

____________________________________________________ _______ ______

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Jarrod Robel
Jarrod RobelLv2
29 Sep 2019

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#17) Exceptional Marketing Corporation reported the following stockholders' equity at Decemebr 31 (adapted and in millions):

Common Stock.................................$256

Additonal paid-in capital............ 275

Retained earings..............................2,129

Treasury Stock............................... (671)

Total stockholders' equity..............$ 1,989

During the nest year, Exceptional Marketing purchsed treasury stock at a cost of $23. million and resold treasury stock for $7 million (this treasury stock has cost Exceptional Marketing $2million). Record the purcahse and resale of Exception Marketing's treasury stosck. Overall, how much did stockholders' equity increase or decrease as a result of the two treasury stock transaction?

Record the purcahse and resale of Eceptional Marketing's treasury stock (record debits first, then credits. Exclude explanations from any juornal entries. Enter amounts in millions.)

First, record the purcahse of the treasury stock.

Journal Entry

Accounts Debits Credits

Millions

(Cash, Common Stock, Dividends payable, Paid-in capital in excess of par, __________ ________

Paid-in Capital from Treasury Stock Transactons, Preferred Stock,

Retained Earnings, Treasury Stock)

___________________________________________________________ ____________ ________

___________________________________________________________ ____________ _________

___________________________________________________________ ___________ __________

The following selected accounts appear in the ledger of Patton Environmental Inc. on July 1, 2014, the beginning of the current fiscal year:

Preferred 2% Stock, $100 par (90,000 shares authorized, 45,000 shares issued) $4,500,000
Paid-In Capital in Excess of Par—Preferred Stock 540,000
Common Stock, $15 par (700,000 shares authorized,
190,000 shares issued)		 2,850,000
Paid-In Capital in Excess of Par—Common Stock 370,000
Retained Earnings 17,511,000

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

Issued 70,000 shares of common stock at $18, receiving cash.

Issued 23,000 shares of preferred 2% stock at $120.

Purchased 42,000 shares of treasury common for $714,000.

Sold 21,000 shares of treasury common for $420,000.

Sold 14,000 shares of treasury common for $210,000.

Declared cash dividends of $2.00 per share on preferred stock and $0.04 per share on common stock.

Paid the cash dividends.

Journalize the entries to record the transactions.

For a compound transaction, if an amount box does not require an entry, leave it blank.

The stockholder's equity accounts of a corporation on January 1, 2015, were as follows:

Preferred Stock (5%, $10 par, cumulative, 5000 shares authorized) $35,000

Common Stock ($5 par, 500,000 shares authorized) $750,000

APIC - Preferred Stock $205,800

APIC - Common Stock $2,220,000

Retained Earnings $857,000

During 2015, the corporation had the following transactions and events relating to its stockholders equity.

Jan.12 Purchased 2,500 shares of its own common stock to add to the Treasury at a cost of $53,750

Mar.17 Issued 10,000 shares of common stock in exchange for a building. On the date of the exchange, the FMV of the buiding was $212,000 and the stock was trading at $20.25 per share.

May.21 Sold 1,000 shares of treasury stock - common for $24 per share.

Nov.5 Issued 500 shares of preferred stock for $36,000

Dec.31 Determined that net income for the year was $226,000. Dividends were declared and paid during December. These dividends included a $0.20 per share dividend to common stockholders of record as of December 20. There are no dividends in arrears.

1.As of Dec.31, 2015, what is the average selling price of the preferred stock?

2.How many shares of common stock are outstanding as of December 31, 2015?

3 What is total amount of dividends declared and paid in 2015?

4. What is total stockholder's equity as of December 31, 2015?

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