Equity transactions.Foley Corporation has the following capital structure at the beginning of the year: 6% Preferred stock, $50 par value, 20,000 shares authorized;6,000 shares issued and outstanding $ 300,000;Common stock, $10 par value, 60,000 shares authorized;40,000 shares issued and outstanding 400,000;Paid-in capital in excess of par 110,000;Total paid-in capital 810,000;Retained earnings 440,000;Total stockholders' equity $1,250,000;Instructions(a) Record the following transactions which occurred consecutively (show all calculations).;1. A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.;2. A 10% common stock dividend was declared. The average market value of the common stock is $18 a share.;3. Assume that net income for the year was $150,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion.;(b) Construct the stockholders' equity section incorporating all the above information.
Paper#24715 | Written in 18-Jul-2015Price : $27