mzeszotek10
Feb 2, 2011, 03:18 PM
AP14-3A
The post-closing trial balance of Dold Corporation at December 31, 2010, contains the following stockholders' equity accounts.
Preferred Stock (15,600 shares issued) $ 780,000
Common Stock (255,400 shares issued) 3,320,200
Paid-in Capital in Excess of Par Value-Preferred 256,200
Paid-in Capital in Excess of Par Value-Common 388,200
Common Stock Dividends Distributable 332,020
Retained Earnings 978,020.0
A review of the accounting records reveals the following.
No errors have been made in recording 2010 transactions or in preparing the closing entry for net income.
Preferred stock is $50 par, 6%, and cumulative; 15,600 shares have been outstanding since January 1, 2009.
Authorized stock is 20,600 shares of preferred, 510,800 shares of common with a $13 par value.
The January 1 balance in Retained Earnings was $1,131,100.
On July 1, 21,800 shares of common stock were sold for cash at $17 per share.
On September 1, the company discovered an understatement error of $90,200 in computing depreciation in 2009. The net of tax effect of $66,800 was properly debited directly to Retained Earnings.
A cash dividend of $250,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2009.
On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $17.
Net income for the year was $597,900.
On December 31, 2010, the directors authorized disclosure of a $207,800 restriction of retained earnings for plant expansion. (Use Note X.)
Incorrect.
Reproduce the Retained Earnings account for the year.
Retained Earnings
Sept. 1 Prior period adj. 66800 Jan. 1 Balance 1131100
Oct. 1 Cash dividend 250000 Dec. 31 Net income
Dec. 31
Stock dividend
Dec. 31 Balance
Incorrect.
Complete the retained earnings statement for the year. (Enter all amounts as positive and subtract where necessary. List amounts from largest to smallest e.g. 10, 5, 3, 2.)
DOLD CORPORATION
Retained Earnings Statement
December 31, 2010
Balance, January 1, as reported $ 1131100
Corr. Of overstmt of 2009 net income 66800
Balance, January 1, as adjusted 1064300
Add: Net income 597900
1662200
Less: Stock dividends $
Cash dividends 250000
Balance, December 31 $
Incorrect.
Complete stockholders' equity section at December 31. (Order multiple accounts in the standard format used in the text.)
DOLD CORPORATION
Partial Balance Sheet
December 31, 2010
Stockholders equity
Paid-in capital
Capital stock
6% Preferred sock,
$ par value, cumulative
shares authorized,
shares issued and outstanding $
Common stock,
$ par value
shares authorized,
shares issued and outstanding $
Common stock div. distributable
Total capital stock
Additional paid-in capital
In excess of par value-pref. stock
In excess of par value-comm. Stock
Total additional paid-in capital
Total paid-in capital
Retained earnings (see note X)
Total stockholders' equity $
Note X: Retained earnings is restricted for plant expansion, $207,800.
Incorrect.
Compute the earnings per share of common stock using 241,000 as the weighted average shares outstanding for the year.
(Round answer to 2 decimal places, e.g. 10.50.)
$
Incorrect.
Compute the allocation of the cash dividend to preferred and common stock.
Allocation to preferred stock $
Allocation to common stock $
The post-closing trial balance of Dold Corporation at December 31, 2010, contains the following stockholders' equity accounts.
Preferred Stock (15,600 shares issued) $ 780,000
Common Stock (255,400 shares issued) 3,320,200
Paid-in Capital in Excess of Par Value-Preferred 256,200
Paid-in Capital in Excess of Par Value-Common 388,200
Common Stock Dividends Distributable 332,020
Retained Earnings 978,020.0
A review of the accounting records reveals the following.
No errors have been made in recording 2010 transactions or in preparing the closing entry for net income.
Preferred stock is $50 par, 6%, and cumulative; 15,600 shares have been outstanding since January 1, 2009.
Authorized stock is 20,600 shares of preferred, 510,800 shares of common with a $13 par value.
The January 1 balance in Retained Earnings was $1,131,100.
On July 1, 21,800 shares of common stock were sold for cash at $17 per share.
On September 1, the company discovered an understatement error of $90,200 in computing depreciation in 2009. The net of tax effect of $66,800 was properly debited directly to Retained Earnings.
A cash dividend of $250,000 was declared and properly allocated to preferred and common stock on October 1. No dividends were paid to preferred stockholders in 2009.
On December 31, a 10% common stock dividend was declared out of retained earnings on common stock when the market price per share was $17.
Net income for the year was $597,900.
On December 31, 2010, the directors authorized disclosure of a $207,800 restriction of retained earnings for plant expansion. (Use Note X.)
Incorrect.
Reproduce the Retained Earnings account for the year.
Retained Earnings
Sept. 1 Prior period adj. 66800 Jan. 1 Balance 1131100
Oct. 1 Cash dividend 250000 Dec. 31 Net income
Dec. 31
Stock dividend
Dec. 31 Balance
Incorrect.
Complete the retained earnings statement for the year. (Enter all amounts as positive and subtract where necessary. List amounts from largest to smallest e.g. 10, 5, 3, 2.)
DOLD CORPORATION
Retained Earnings Statement
December 31, 2010
Balance, January 1, as reported $ 1131100
Corr. Of overstmt of 2009 net income 66800
Balance, January 1, as adjusted 1064300
Add: Net income 597900
1662200
Less: Stock dividends $
Cash dividends 250000
Balance, December 31 $
Incorrect.
Complete stockholders' equity section at December 31. (Order multiple accounts in the standard format used in the text.)
DOLD CORPORATION
Partial Balance Sheet
December 31, 2010
Stockholders equity
Paid-in capital
Capital stock
6% Preferred sock,
$ par value, cumulative
shares authorized,
shares issued and outstanding $
Common stock,
$ par value
shares authorized,
shares issued and outstanding $
Common stock div. distributable
Total capital stock
Additional paid-in capital
In excess of par value-pref. stock
In excess of par value-comm. Stock
Total additional paid-in capital
Total paid-in capital
Retained earnings (see note X)
Total stockholders' equity $
Note X: Retained earnings is restricted for plant expansion, $207,800.
Incorrect.
Compute the earnings per share of common stock using 241,000 as the weighted average shares outstanding for the year.
(Round answer to 2 decimal places, e.g. 10.50.)
$
Incorrect.
Compute the allocation of the cash dividend to preferred and common stock.
Allocation to preferred stock $
Allocation to common stock $