accounting t accounts and balance sheet 458820

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Accounting 201 Section 70 / Ch 11 assignment

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P11-2A

The stockholders’ equity accounts of Sigma Corporation on January 1, 2010, were as follows.

Preferred Stock (8%, $100 par noncumulative, 5,000 shares authorized)

$300,000

Common Stock ($5 stated value, 300,000 shares authorized)

1,000,000

Paid-in Capital in Excess of Par Value – Preferred Stock

15,000

Paid-in Capital in Excess of Stated Value – Common Stock

480,000

Retained Earnings

688,000

Treasury Stock – Common (5,000 shares)

40,000

During 2010 the corporation had these transactions and events pertaining to its stockholders’ equity.

Feb. 1

Issued 5,000 shares of common stock for $30,000.

Mar. 20

Purchased 1,000 additional shares of common treasury stock at $7 per share.

Oct. 1

Declared a 8% cash dividend on preferred stock, payable November 1.

Nov. 1

Paid the dividend declared on October 1.

Dec. 1

Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2010.

Dec. 31

Determined that net income for the year was $280,000. Paid the dividend declared on December 1.

Incorrect.

Journalize the transactions. (Include entries to close net income to Retained Earnings. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Date

Account/Description

Debit

Credit

Feb. 1

Cash

30,000

Common Stock

25,000

Paid-in Capital in Excess of Stated Value-Common Stock

5,000

Mar. 20

Treasury Stock

7,000

Cash

7,000

Oct. 1

Cash Dividends

24,000

Dividends Payable

24,000

Nov. 1

Dividends Payable

24,000

Cash

24,000

Dec. 1

Cash Dividends

99,500

Dividends Payable

99,500

Dec. 31

Income Summary

280,000

Retained Earnings

280,000

(To close income summary)

(To close dividends)

Dividends Payable

Cash

(To pay dividends)

Incorrect.

Enter the beginning balances in the accounts and post the journal entries to the stockholders’ equity accounts. (Use T accounts.) (If answer is zero please enter 0, do not leave any fields blank.)

Preferred Stock

Paid-in Cap. in Excess of Par Value – Pref. Stock

1/1

0

1/1

300,000

1/1

0

1/1

15,000

12/31 Bal.

0

12/31 Bal.

300,000

12/31 Bal.

0

12/31 Bal.

15,000

Common Stock

Paid-in Cap. in Exc. of Stated Value – Comm. Stock

1/1 Bal.

0

1/1 Bal.

1,000,000

1/1 Bal.

0

1/1 Bal.

480,000

2/1

0

2/1

25,000

2/1

0

2/1

5,000

12/31 Bal.

0

12/31 Bal.

1,025,000

12/31 Bal.

0

12/31 Bal.

485,000

Retained Earnings

Treasury Stock – Common

12/31

1/1 Bal.

688,000

1/1 Bal.

40,000

1/1 Bal.

0

12/31

0

12/31

280,000

3/20

7,000

3/20

0

12/31 Bal.

0

12/31 Bal.

12/31 Bal.

47,000

12/31 Bal.

0

Cash Dividends

10/1

24,000

10/1

0

12/1

99,500

12/31

12/31 Bal.

12/31 Bal.

0

Incorrect.

Complete the stockholders’ equity section of the balance sheet at December 31, 2010 below. (If amount should be deducted please put either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)

SIGMA CORPORATION

Partial Balance Sheet

December 31, 2010

Stockholders’ equity

Paid-in capital

Capital stock

8% Preferred stock,

$100 par value, noncumulative,

5,000 shares authorized,

3,000 shares issued and outstanding

$ 300,000

Common stock,

no par, $5 stated value

300,000 shares authorized,

shares issued

and shares outstanding

Total capital stock

$

Additional paid-in capital

In excess of par value-preferred stock

15,000

In excess of stated value-common stock

485,000

Total additional paid-in capital

500,000

Total paid-in capital

Retained earnings

Total paid-in capital and retained earnings

Less: Treasury stock

( 6,000 common shares)

-47,000

Total Stockholders’ Equity

$

Incorrect.

Calculate the payout ratio, earnings per share, and return on common stockholders’ equity ratio. (Note: Use the common shares outstanding on January 1 and December 31 to determine average shares outstanding.) (Round all ratios to 1 decimal place, e.g. 25.5 and earnings per share to 2 decimal places, e.g. 2.25.)

Payout ratio

35.5 %

Earnings per share

$

Return on common stockholders’ equity

%

Question Attempts: 2 of 3 used

Journal is correct but t and balance are not all correct help!

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