Reference no: EM132904575

Question - Complete the following using either Excel or Word Preferred shares, $1, 50,000 shares authorized,

1) The following information was taken from the accounting records of Winnifred Corp. at December 1, 2017. The income tax rate is 40%.

10,000 shares issued $150,000

Retained earnings, balance as of January 1, 2017 287,000

Cost of goods sold 935,000

Gain on sale of discontinued segment 80,000

Sales revenue 1,463,500

Selling expenses 215,000

Sales Returns 10,000

Sales Discounts 3,500

Administrative expenses 112,000

Operating income, discontinued segment 33,000

Loss on expropriation of land 46,000

Common shares, unlimited number of shares authorized, 200,000 shares issued 315,000

Requirement 1 - Record the following transaction in the General Journal:

Dec 5 Declared cash dividends in the amount of $50,000 to be distributed to the shareholders of record on December 9. Dividends will be paid on December 15.

Dec 10 Declared a 1 for 2 stock split on Common Shares outstanding.

Dec 15 Paid the cash dividend declared on Dec 5.

Dec 20 Repurchased 10,000 common shares, the market price was $5 per share.

Dec 30 Declared a 10% common stock dividend to shareholders of record on Jan 15. Market price at the time was $6 per share. Shares will be distributed Jan 25.

Dec 31 Closed the income summary account which had a credit balance of $153,000 to Retained Earnings.

Requirement 2 - Open t-accounts for the ledger records and post the transactions from requirement 1.

Requirement 3 - Prepare a single step income statement with EPS, a statement of retained earnings, and a statement of shareholder's equity for the year ended December 31, 2017.