0 /14 Date Transaction 1/1/2017 Reeves Corporation issued 100,000 shares of $1.00 par common stock at a price of $1.00 per share. 1 ALT-STOCK-DIVIDEND TOTAL SCORE: 2 There are 5 problems in this set. Choose a number between 1 and 5: 4 5 LINE DATE GENERAL JOURNAL DEBIT CREDIT GRADE 6 1 1/1/2017 0 7 2 0 8 3 9 4 12/31/2017 0 10 5 0 11 6 12 7 12/31/2017 0 13 8 0 14 9 15 10 12/31/2017 0 16 11 0 17 12 0 12/31/2017 Reeves earned revenue on account this year of $80,000 12/31/2017 Reeves incurred expenses on account this year of $50,000. CLOSING THE ACCOUNTS 12/31/2017 Debit Revenue for total revenue earned. Credit Expenses for total expenses incurred. Credit the net income amount to Retained Earnings. 18 13 19 14 15 16 17 18 Right now, your stockholders' equity looks like this: COMMON STOCK PAID-IN CAPITAL IN EXCESS OF PAR TOTAL PAID IN CAPITAL RETAINED EARNINGS TOTAL STOCKHOLDERS' EQUITY 100,000 0 100,000 30,000 130,000 19 20 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 21 22 12/31/2017 23 0 0 12/31/2017 Reeves declared a 10.00% stock dividend when the market price of the stock was $1.50 per share. Debit RE for shares * $1.50, credit CS for par,credit PICIE for remainder. 24 0 25 26 1/15/2018 27 -O 28 1/15/2018 The shares were distributed and stockholders' equity looks like: COMMON STOCK 110,000 PAID-IN CAPITAL IN EXCESS OF PAR 5,000 TOTAL PAID IN CAPITAL 115,000 RETAINED EARNINGS 15,000 29 35 30 ALT-STOCK-DIVIDEND Ready A B D E H 14 15 9 0 1 2 16 17 100,000 18 Right now, your stockholders' equity looks like this: COMMON STOCK PAID-IN CAPITAL IN EXCESS OF PAR TOTAL PAID IN CAPITAL RETAINED EARNINGS TOTAL STOCKHOLDERS' EQUITY 19 20 100,000 30,000 130,000 0 0 12/31/2017 Reeves declared a 10.00% stock dividend when the market price of the stock was $1.50 per share. Debit RE for shares * $1.50, credit CS for par,credit PICIE for remainder. 0 21 22 12/31/2017 23 24 25 26 1/15/2018 27 28 29 30 0 0 3 4 5 6 27 28 29 0 31 32 33 34 35 36 87 38 39 40 41 42 43 44 45 46 47 48 49 1/15/2018 The shares were distributed and stockholders' equity looks like: COMMON STOCK 110,000 PAID-IN CAPITAL IN EXCESS OF PAR 5,000 TOTAL PAID IN CAPITAL 115,000 RETAINED EARNINGS 15,000 TOTAL STOCKHOLDERS' EQUITY 130,000 31 32 DEBIT CREDIT TRIAL BALANCE CASH ACCOUNTS RECEIVABLE LAND ACCOUNTS PAYABLE COMMON STOCK COMMON STOCK DISTRIBUTABLE PAID IN CAPITAL IN EXCESS OF PAR PREFERRED STOCK RETAINED EARNINGS REVENUE EXPENSES 50 51 52 0 0 53 IN BALANCE ALT-STOCK-DIVIDEND Ready