Declared the annual 2011 10 per share dividend on preferred

Reference no: EM13592099

Elizabeth Company reported the following amounts in the stockholders' equity section of its December 31, 2010, balance sheet.

Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000
Common stock, $5 par (100,000 shares authorized, 20,000 shares issued) 100,000
Additional paid-in capital 125,000
Retained earnings 490,000
Total $915,000

During 2011, Elizabeth took part in the following transactions concerning stockholders' equity.

1. Paid the annual 2010 $10 per share dividend on preferred stock and a $8 per share dividend on common stock. These dividends had been declared on December 31, 2010.
2. Purchased 1,700 shares of its own outstanding common stock for $41 per share. Elizabeth uses the cost method.
3. Reissued 700 treasury shares for land valued at $30,700.
4. Issued 500 shares of preferred stock at $107 per share.
5. a 10% stock dividend on the outstanding common stock when the stock is selling for $50 per share.
6. Issued the stock dividend.
7. Declared the annual 2011 $10 per share dividend on preferred stock and the $8 per share dividend on common stock. These dividends are payable in 2012.

(a) Prepare journal entries to record the transactions described above.

(b) Prepare the December 31, 2011, stockholders' equity section. Assume 2011 net income was $330,000

Reference no: EM13592099

Questions Cloud

On the first day of the current fiscal year 2000000 of 10 : on the first day of the current fiscal year 2000000 of 10 year 7 bonds with interest payable annually were sold for

The cardinal company had a finished goods inventory of : the cardinal company had a finished goods inventory of 55000 units on january 1. its projected sales for the next four

Assuming that all direct materials are placed in process at : department g had 3300 units one-third completed at the beginning of the period 13843 units were completed during the

Fashion jeans inc sells two lines of jeans simple life and : fashion jeans inc. sells two lines of jeans simple life and fancy life. simple life sells for 85.00 a pair and fancy

Declared the annual 2011 10 per share dividend on preferred : elizabeth company reported the following amounts in the stockholders equity section of its december 31 2010 balance

Wenner furnace corp purchased machinery for 421290 on may 1 : wenner furnace corp. purchased machinery for 421290 on may 1 2012. it is estimated that it will have a useful life of

The common stock of warner inc is currently selling at 110 : the common stock of warner inc. is currently selling at 110 per share. the directors wish to reduce the share price and

Excello telecommunications has been profitable for many : write a 1200- to 1500-word paper explaining the legal aspects financial standards involved and ethicality of the

You are a manager of a large home improvement store what : you are a manager of a large home improvement store. what are the five factors that you believe are most critical to

User Account

All Pages