60.1K

Verified Solution

Link Copied!

Exercise 11-12

The stockholders equity accounts of Blossom Company on January 1, 2022, were as follows.

Preferred Stock (9%, $100 par noncumulative, 5,000 shares authorized)		$475,000
Common Stock ($10 stated value, 800,000 shares authorized)		1,560,000
Paid-in Capital in Excess of Par ValuePreferred Stock		56,000
Paid-in Capital in Excess of Stated Value Common Stock		820,000
Retained Earnings		760,000
Treasury Stock (8,300 common shares)		66,400

During 2022, the corporation had the following transactions and events pertaining to its stockholders equity.

Mar	1		Issued 6,700 shares of common stock for $85 per share.
June	22		Purchased 1,600 additional shares of common treasury stock at $11 per share.
Sept.	1		Declared a 9% cash dividend on preferred stock, payable October 1.
Oct.	1		Paid the dividend declared on September 1.
Dec.	1		Declared a $0.60 per share cash dividend to common stockholders of record on December 15, payable December 31, 2022.
	31		Determined that net income for the year was $123,000. Paid the dividend declared on December 1.

Journalize the transactions for the dates shown. Include entries to close net income and dividends to Retained Earnings. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer & Explanation Solved by verified expert

See Answer