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Accounting Module 5 Assignment

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Question;Pearson began 2012 with 30,000 $1 common shares issued and outstanding. Paid in capital in excess of par was $25,000 and retained earnings were $175,000. Netincome for 2012 was $22,000. Peason had outstanding 5000 shares of $4.00 par, 5% preferred stock. Pearson Wood Supplies completed the following transactionsfor 2012.JanMarchAprilJuneDec262015101422Issued 10,000 shares $1 par common stock for $10 per shareDeclared a cash dividend on 5,000 shares of 5% $4 par preferred stock and a $.20 per share dividend on 40,000 shares of common stock outstanding.The date of record is January 15 and the date of payment is Jauary 20.Paid the cash dividendDeclared a 2-for-1 stock split by calling in the 40,000 shares of $1 par common stock and issuing new stock in its place Declared and distributed a 10% stock dividend on the common stock when the market value was $12 per share Purchased 1,000 shares of common stock for the treasury for $13 per shareSold 500 treasury shares for $15 per shareRequirements:1 Record the transactions in the journal.JournalDate2 AccountsPost Ref.DebitCreditPrepare the statement of shareholders' equity for 20XX.Pearson Wood SuppliesStatement of Shareholders' EquityFor the year ended 2012Preferred stockCommon StockAdditional Paid inCapitalRetained EarningsTreasury Stock

 

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