Reference no: EM133184109
Question - Minatozaki Corporation has the following capital structure at the beginning of the year:
5% Preferred stock, P50 par value, 20,000 shares authorized,
6,000 shares issued and outstanding P 300,000
Common stock, P10 par value, 60,000 shares authorized,
40,000 shares issued and outstanding 400,000
Paid-in capital in excess of par 110,000
Total paid-in capital 810,000
Retained earnings 440,000
Total stockholders' equity P1,250,000
A total cash dividend of P90,000 was declared and payable to stockholders of record.
Record dividends payable on common and preferred stock in separate accounts.
A 15% common stock dividend was declared. The average fair value of the common stock is P18 a share.
Assume that net income for the year was P120,000 (record the closing entry) and the board of directors appropriated P70,000 of retained earnings for plant expansion.
Record the following transactions which occurred consecutively (show all calculations).
Construct the stockholders' equity section incorporating all the above information.