+1-415-670-9189
info@expertsmind.com
Prepare a retained earnings statement
Course:- Managerial Accounting
Reference No.:- EM13287




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Managerial Accounting

The Primo Corporation began operations two years ago and was authorized to issue 500,000 shares of 6%, $100 par value preferred stock and 2,000,000 shares of $5 par value common stock.

The following transactions and events were completed during 2013.

(Note: at the beginning of 2013 there are 1,000 shares of preferred stock and 500,000 shares of common stock) 

Jan. 1 Issued an additional 200,000 shares of common stock for cash at $8 per share. 

Feb. 2 Issued an additional 30,000 shares of preferred stock for cash at $106 per share. 

Mar. 3 Declared a cash dividend on the preferred stock $186,000. 

Apr. 4 Discovered a $50,000 overstatement of 2011 depreciation. 

May 5 Paid the cash dividend declared of March 3. 

June 6 Issued 3,500 shares of common stock for land that was advertised for sale at $35,000. The stock market price of the stock is $9 per share. 

July 7 Declared a 10% stock dividend on common stock when the market value of the stock was $11 per share. (hint: compute the total number of shares of common stock)

Aug. 8 Distributed the stock dividend from July 7

Sept. 9 Primo purchased 4,000 shares of its own common stock at $12 per share. 

Oct. 10 Sold 3,000 shares of treasury stock for $13 per share 

Nov. 11 Declared a $1 cash dividend per share on common stock. (hint: compute the total number of shares of common stock outstanding.) 

Dec. 31 Determined that net income for the year was $650,000.

Instructions

(a) Journalize the transactions listed above.

(b) Post only the stockholder's equity accounts.

(c) Prepare a retained earnings statement for the year.

(d) Prepare a stockholders' equity section at December 31, 2013.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Managerial Accounting) Materials
33.which is least likely to be the reason for resistance to major changes in job content and procedures by people who have been doing the job with moderate success for many ye
Indicated below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Pro tab Packages to the separate performance obligations i
Your firm wants to move from a relational database model to the REA data model. Explain to your senior management the risks and rewards of such of a move. Be sure to provide
Is Noailles being unfairly penalised if she implements JIT? What should Noailles do? What should Eluard do? Is Noailles correct in characterising some of the financial benefit
Using Exhibit 7-13 as a guide, prepare a quantitative comparison of the traditional and activity-based cost assignments. Explain why the traditional and activity-based cost as
Allocate service department costs to consuming departments by the step-down method. Then compute predetermined overhead rates in the operating departments, using a machine-hou
What are some of the benefits of ABC that relate to the financial services industry? -  What are three things that the company's original costing method did not take into acco
One of the items that's under continuing scrutiny and a source of continuing debate is fails and marketing expense. Do you think that the industry has done a good job of expla