90.2K

Verified Solution

Link Copied!

The stockholders$$ equity accounts of Whispering Winds Corp. on January $1,2022,$ were as follows.

Preferred Stock $(7\%,$ $$100$ par noncumulative, $5,000$ shares authorized$)$

$$300,000$

Common Stock $($$$4$ stated value, $300,000$ shares authorized$)$

$1,000,000$

Paid$-$in Capital in Excess of Par Value$$Preferred Stock

$15,000$

Paid$-$in Capital in Excess of Stated Value$$Common Stock

$480,000$

Retained Earnings

$699,500$

Treasury Stock $(5,000$ common shares$)$

$40,000$

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

Feb. $1$ Issued $5,000$ shares of common stock for $$30,000.$

Mar. $20$ Purchased $1,000$ additional shares of common treasury stock at $$8$ per share.

Oct. $1$ Declared a $7\%$ cash dividend on preferred stock, payable November $1.$

Nov. $1$ Paid the dividend declared on October $1.$

Dec. $1$ Declared a $$0\mathrm{.}70$ per share cash dividend to common stockholders of record on December $15,$ payable December $31,2022.$

Dec. $31$ Paid the dividend declared on December $1.$

$($a$)$ Prepare a tabular summary that includes the January $1,2022,$ balances. Do not include the beginning balance in Retained Earnings in the tabular summary.

$($b$)$ prepare the shareholder equity section of the balance sheet at december $31,2022$ include $2022$ net income of $$261300$ as an increase to the january $1,2022$ retained earning s

Answer & Explanation Solved by verified expert

See Answer