Timber ridge corporation was organized on january 1 2013

Assignment Help Accounting Basics

Reference no: EM13481427

The following information is available for Grey Goose Inc.:

Beginning retained earnings $600,000

Cash dividends declared 60,000

Net income for 2014 120,000

Stock dividend declared 15,000

Understatement of last year's depreciation expense 30,000

Instructions

Based on the preceding information, prepare a retained earnings statement for 2014 in the box below.

GREY GOOSE INC.

Retained Earnings Statement

For the Year Ended December 31, 2014

PROBLEM

Timber Ridge Corporation was organized on January 1, 2013. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends:

2013 $ 8,000

2014 $30,000

2015 $70,000

Instructions

(a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 5% and not cumulative.

(b) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 6% and cumulative.

(a) Preferred Common Total

2013

2014

2015

(b) Preferred Common Total

2013

2014

2015

(c)

Date	Account	Debit	Credit

Reference no: EM13481427

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