Prepare retained earnings and stockholders equity

Assignment Help Accounting Basics

Reference no: EM1357183

The stockholders' equity accounts of Hashmi Company at January 1, 2008, are as follows.

Preferred Stock, 6%, $50 par $600,000
Common Stock, $5 par 800,000
Paid-in Capital in Excess of Par Value-Preferred Stock 200,000
Paid-in Capital in Excess of Par Value-Common Stock 300,000
Retained Earnings 800,000

There were no dividends in arrears on preferred stock. During 2008, the company had the following transactions and events.

July 1 Declared a $0.50 cash dividend on common stock.
Aug. 1 Discovered $25,000 understatement of 2007 depreciation. Ignore income taxes.
Sept. 1 Paid the cash dividend declared on July 1.
Dec. 1 Declared a 10% stock dividend on common stock when the market value of the stock was $18 per share.
Dec. 15 Declared a 6% cash dividend on preferred stock payable January 15, 2009.
Dec. 31 Determined that net income for the year was $355,000.
Dec. 31 Recognized a $200,000 restriction of retained earnings for plant expansion.

Enter the beginning balances in the accounts, and post to the stockholders' equity accounts. (Note: Open additional stockholders' equity accounts as needed.) (If answer is zero, please enter 0, do not leave any fields blank.)

Prepare a retained earnings statement for the year. (List multiple entries in descending order of amount.)

Prepare a stockholders' equity section at December 31, 2008.

Reference no: EM1357183

Questions Cloud

Find the gradient magnitude and gradient direction : Consider the sub-image shown above. Find the gradient magnitude and gradient direction at the center entry using the following operators.

Illustrate what weakness does this measure have : Illustrate what are the arguments for using real per capita GNI to compare living standards between countries. What weakness does this measure have.

What is the magnitude of the trains angular acceleration : A 26 kg gun is standing on a frictionless surface. The gun fires a .0573 kg bullet with a muzzle velocity of 323 m/s. The positive direction is that of the bullet immediately after the gun was fired. compute the momentum of the gun immedately afte..

Prepare a trend analysis of operating ratios : Your parents have been left a substantial amount of money and want to invest it in a corporation. They want your recommendation but also want to see the reasoning behind your choice. Make a trend analysis of operating ratios

Prepare retained earnings and stockholders equity : The stockholders' equity accounts of Hashmi Company at January 1, 2008, are as follows. Prepare a retained earnings statement for the year. (List multiple entries in descending order of amount.) Prepare a stockholders' equity section at December 31, ..

Combat stress and strain : Provide a summary of coping skills and techniques Sarah may utilize to combat stress and strain.

How many electrons must be transferred from one disk : A 5 kg rock is dropped from rest down a vertical mine shaft. How long does it take for the rock to reach a depth of 79 m? Neglect air resistance.

The presentation and analysis of research data : Show what value do you think hypothesis testing contributes to the presentation and analysis of research data?

Elucidate which have almost exactly the same ingredients : here are many liquid cold medicines, all of which have almost exactly the same ingredients. Yet medicines with brand names that the man recognizes from television commercials are for more than the unadvertised versions. Elucidate in economic terms..

User Account

All Pages