Reference no: EM132504262

Question - On January 1, 2019, Ziggy Corp. had the following balances (all balances are normal):

Accounts Amount

Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 6,000 shares issued and outstanding) $600,000

Common Stock ($5 par value, 200,000 shares authorized, 100,000 shares issued and outstanding) $500,000

Paid-in Capital in Excess of par, Common 200,000

Retained Earnings 900,000

The following events occurred during 2019:

1. On January 1, Ziggy Corp. declared a 5% stock dividend on its common stock when the market value of the common stock was $13 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.

2. On February 15, Ziggy Corp. reacquired 1000 shares of common stock for $13.50 each.

3. On March 31, Ziggy Corp. reissued 250 shares of treasury stock for $17 each.

4. On July 1, Ziggy Corp. reissued 250 shares of treasury stock for $12 each.

5. On October 1, Ziggy Corp. declared full year dividends for preferred stock and $2.00 cash dividends for outstanding shares and paid shareholders on October 15.

6. On December 15, Ziggy Corp. split common stock 2 shares for 1.

7. Net Income for 2019 was $300,000.

Requirements -

1. Prepare journal entries for the transactions listed above.

2. Prepare a Stockholders' section of a classified balance sheet as of December 31, 2019 (after taking into consideration your journal entries).