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The equity sections for Fairhaven Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders' Equity (January 1) Common stock-$10 par value, 130,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Stockholders' Equity (December 31) Common stock-$10 par value, 130,000 shares authorized, 58,010 shares issued, 5,500 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($110,000 restricted by treasury stock) Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $1.20 per share cash dividend, payable on January 10. March 20 Purchased treasury stock for cash. April 5 Declared a $1.20 per share cash dividend, payable on April 10. July 5 Declared a $1.20 per share cash dividend, payable on July 10. July 31 Declared a 18 % stock dividend when the stock's market value was $22 per share. August 14 Issued the stock dividend that was declared on July 31. October 5 Declared a $1.20 per share cash dividend, date of record October 10. $ 500,000 75,000 410,000 $ 985,000 $ 580,100 171,120 740,000 1,491,220 (110,000) $ 1,381,220

The equity sections for Fairhaven Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders' Equity (January 1) Common stock-$10 par value, 130,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Stockholders' Equity (December 31) Common stock-$10 par value, 130,000 shares authorized, 58,010 shares issued, 5,500 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($110,000 restricted by treasury stock) Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $1.20 per share cash dividend, payable on January 10. March 20 Purchased treasury stock for cash. April 5 Declared a $1.20 per share cash dividend, payable on April 10. July 5 Declared a $1.20 per share cash dividend, payable on July 10. July 31 Declared a 18 % stock dividend when the stock's market value was $22 per share. August 14 Issued the stock dividend that was declared on July 31. October 5 Declared a $1.20 per share cash dividend, date of record October 10. $ 500,000 75,000 410,000 $ 985,000 $ 580,100 171,120 740,000 1,491,220 (110,000) $ 1,381,220

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...
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The equity sections for Fairhaven Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders' Equity (January 1) Common stock-$10 par value, 130,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Stockholders' Equity (December 31) Common stock-$10 par value, 130,000 shares authorized, 58,010 shares issued, 5,500 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($110,000 restricted by treasury stock) Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $1.20 per share cash dividend, March 20 Purchased treasury stock for cash. payable on January 10. April 5 Declared a $1.20 per share cash dividend, payable on April 10. July 5 Declared a $1.20 per share cash dividend, payable on July 10. July 31 Declared a 18 % stock dividend when the stock's market value was $22 per share. August 14 Issued the stock dividend that was declared on July 31. October 5 Declared a $1.20 per share cash dividend, date of record October 10. Requirement General Journal View transaction list < Journal entry worksheet General Ledger Note: Enter debits before credits. Date December 31 The following transactions and events affected its equity during the year. Prepare the journal entry necessary to record each event, and then agree the year-end balances with the December 31 Stockholders' Equity statement given above. Close income summary to retained earnings. Record entry Trial Balance Income summary Retained earnings 8 Account Title Clear entry Cash Dividends Stock Dividend 10 11 Debit 12 Credit $ 500,000 75,000 410,000 $ 985,000 View general journal $ 580,100 171, 120 740,000 1,491,220 (110,000) $ 1,381,220
Transcribed Image Text:The equity sections for Fairhaven Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders' Equity (January 1) Common stock-$10 par value, 130,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Stockholders' Equity (December 31) Common stock-$10 par value, 130,000 shares authorized, 58,010 shares issued, 5,500 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($110,000 restricted by treasury stock) Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during the year. January 5 Declared a $1.20 per share cash dividend, March 20 Purchased treasury stock for cash. payable on January 10. April 5 Declared a $1.20 per share cash dividend, payable on April 10. July 5 Declared a $1.20 per share cash dividend, payable on July 10. July 31 Declared a 18 % stock dividend when the stock's market value was $22 per share. August 14 Issued the stock dividend that was declared on July 31. October 5 Declared a $1.20 per share cash dividend, date of record October 10. Requirement General Journal View transaction list < Journal entry worksheet General Ledger Note: Enter debits before credits. Date December 31 The following transactions and events affected its equity during the year. Prepare the journal entry necessary to record each event, and then agree the year-end balances with the December 31 Stockholders' Equity statement given above. Close income summary to retained earnings. Record entry Trial Balance Income summary Retained earnings 8 Account Title Clear entry Cash Dividends Stock Dividend 10 11 Debit 12 Credit $ 500,000 75,000 410,000 $ 985,000 View general journal $ 580,100 171, 120 740,000 1,491,220 (110,000) $ 1,381,220
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