60.1K

Verified Solution

Link Copied!

Problem 11-3A The stockholders equity accounts of Castle Corporation on January 1, 2017, were as follows. Preferred Stock (8%, $50 par, cumulative, 10,000 shares authorized) $ 425,000 Common Stock ($1 stated value, 2,050,000 shares authorized) 1,100,000 Paid-in Capital in Excess of ParPreferred Stock 115,000 Paid-in Capital in Excess of Stated ValueCommon Stock 1,500,000 Retained Earnings 1,750,000 Treasury Stock (10,000 common shares) 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders equity. Feb. 1 Issued 24,000 shares of common stock for $120,000. Apr. 14 Sold 6,000 shares of treasury stockcommon for $32,300. Sept. 3 Issued 4,800 shares of common stock for a patent valued at $34,600. Nov. 10 Purchased 1,100 shares of common stock for the treasury at a cost of $5,900. Dec. 31 Determined that net income for the year was $400,000. No dividends were declared during the year. Instructions. Journalize the transactions and the closing entry for net income. (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.) Enter the beginning balances in the accounts, and post the journal entries to the stockholders equity accounts. (Post entries in the order of journal entries presented in the previous part.) Prepare a stockholders equity section at December 31, 2017, including the disclosure of the preferred dividends in arrears. (Enter the account name only and do not provide the descriptive information provided in the question.)

Answer & Explanation Solved by verified expert

See Answer