Details of this Paper

The stockholders' equity accounts of Hashmi Company at January 1, 2008, are as follows.

Description

solution


Question

The stockholders' equity accounts of Hashmi Company at January 1, 2008, are as follows.;Preferred Stock, 6%, $50 par $600,000;Common Stock, $5 par 800,000;Paid-in Capital in Excess of Par Value-Preferred Stock 200,000;Paid-in Capital in Excess of Par Value-Common Stock 300,000;Retained Earnings 800,000;There were no dividends in arrears on preferred stock. During 2008, the company had the following transactions and events.;July 1 Declared a $0.50 cash dividend on common stock.;Aug. 1 Discovered $25,000 understatement of 2007 depreciation. Ignore income taxes.;Sept. 1 Paid the cash dividend declared on July 1.;Dec. 1 Declared a 10% stock dividend on common stock when the market value of the stock was $18 per share.;Dec. 15 Declared a 6% cash dividend on preferred stock payable January 15, 2009.;Dec. 31 Determined that net income for the year was $355,000.;Dec. 31 Recognized a $200,000 restriction of retained earnings for plant expansion.;Enter the beginning balances in the accounts, and post to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (If answer is zero, please enter 0, do not leave any fields blank.);Prepare a retained earnings statement for the year. (List multiple entries in descending order of amount.);Prepare a stockholders' equity section at December 31, 2008.

 

Paper#27705 | Written in 18-Jul-2015

Price : $32
SiteLock