90.2K

Verified Solution

Link Copied!

Problem 11-4A (Part Level Submission) The ledger of Flounder Corp. at December 31, 2017, after the books have been closed, contains the following stockholders' equity accounts. $1,224,000 Preferred Stock (12,000 shares issued) Common Stock (371,000 shares issued) 2,226,000 Paid-in Capital in Excess of Par Value-Preferred Stock 111,000 Paid-in Capital in Excess of Stated Value-Common Stock 1,520,000 Retained Earnings 2,771,000 A review of the accounting records reveals this information: Preferred stock is 7%, $102 par value, noncumulative. Since January 1, 2016, 12,000 shares have been outstanding; 24,000 shares are authorized. Common stock is no-par with a stated value of $6 per share; 742,000 shares are authorized 1. 2 3. The January 1, 2017, balance in Retained Earnings was $2,319,000. 4. On October 1, 61,000 shares of common stock were sold for cash at $9 per share. A cash dividend of $392,000 was declared and properly allocated to preferred and common stock on November 1 No dividends were paid to preferred stockholders in 2016. Net income for the year was $844,000. 5 6 On December 31, 2017, the directors authorized disclosure of a $167,000 restriction of retained earnings for plant expansion. (Use Note A.) 7. (a) Reproduce the Retained Earnings account for the year. Retained Earnings Jan. 1 Balance Jan. 1 Balance Dec. 31 Dec. 31 Balance Click if you would like to Show Work for this question: Open Show Work

Answer & Explanation Solved by verified expert

See Answer