Reference no: EM131661451

Question: On December 31, 2016, Turner Corp. had the following balances (all balances are normal): Accounts Amount Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding) $1,000,000 Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding) $1,000,000 Paid-in Capital in Excess of par, Common 150,000 Retained Earnings 700,000 The following events occurred during 2016 and WERE NOT RECORDED: On January 1, Turner Corp. declared a 5% stock dividend on its common stock when the market value of the common stock was $12 per share.

Stock dividends were distributed on January 31 to shareholders as of January 25. On February 15, Turner Corp. reacquired 1,000 shares of common stock for $15 each. On March 31, Turner Corp. reissued 250 shares of treasury stock for $20 each. On July 1, Turner Corp. reissued 500 shares of treasury stock for $10 each. On October 1, Turner Corp. declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15. On December 15, Turner Corp. split common stock 2 shares for 1. Net Income for 2015 was $250,000.

Requirements: Prepare journal entries for the transactions listed above. Prepare a Stockholders' section of a classified balance sheet as of December 31, 2015 (after taking into consideration your journal entries)