Cash dividends across two accounting cycles, Accounting Basics

Assignment Help:

Recording and reporting stock transactions and cash dividends across two accounting cycles

Davis Corporation was authorized to issue 100,000 shares of $10 par common stock and 50,000 shares of $50 par, 6 percent, cumulative preferred stock. Davis Corporation completed the following transactions during its first two years of operation.

2012

Jan.

2 Issued 5,000 shares of $10 par common stock for $28 per share.

            15 Issued 1,000 shares of $50 par preferred stock for $70 per share.

Feb. 14 Issued 15,000 shares of $10 par common stock for $30 per share.

Dec.

31 During the year, earned $170,000 of cash service revenue and paid $110,000 of cash operating expenses.

            31 Declared the cash dividend on outstanding shares of preferred stock for 2012. The dividend will be paid on January 31 to stockholders of record on January 15, 2013.

2013

Jan. 31 Paid the cash dividend declared on December 31, 2012.

Mar. 1 Issued 2,000 shares of $50 par preferred stock for $58 per share.

 

June 1 Purchased 500 shares of common stock as treasury stock at $43 per share.

Dec. 31 During the year, earned $210,000 of cash service revenue and paid $175,000 of cash operating expenses.

31  Declared the dividend on the preferred stock and a $0.60 per share dividend on the common stock..

a.  Organize the transaction data in accounts under an accounting equation.

 b.  Prepare the stockholders' equity section of the balance sheet at December 31, 2012.

 c. Prepare the balance sheet at December 31, 2013.


Related Discussions:- Cash dividends across two accounting cycles

Discount period for purchase, Verify the amount to be paid within the disco...

Verify the amount to be paid within the discount period for purchase with an invoice price of $7,745, subject to credit terms of 2/10, n/30.

Enumerate the fundamentals of financial accounting, Enumerate the fundament...

Enumerate the fundamentals of financial accounting information Frame works and principles which have been developed try to address fundamental questions like: ?Who are user

What do you mean by single proprietorship, Q. What do you mean by single pr...

Q. What do you mean by single proprietorship? A single proprietorship is a non incorporated business owned by an individual and often managed by that same person. Single propri

Example of adjusting entries, Q. Example of adjusting entries? Regulate...

Q. Example of adjusting entries? Regulate entries bring the amounts in the general ledger accounts to their proper balances before the company prepares its financial statements

Show employment opportunities in accounting, Q. Show Employment opportuniti...

Q. Show Employment opportunities in accounting? Throughout the last half-century accounting has gained the same professional status as the medical and legal professions. At pre

Explain what is brs?, BRS - Bank Reconciliation Statement A bank recon...

BRS - Bank Reconciliation Statement A bank reconciliation statement is a declaration organized by organizations to reconcile the balance of cash at bank in a company's own rec

Accounting , Jim owns and manages a small business, which provides an offic...

Jim owns and manages a small business, which provides an office design service, as well as buying and selling office furniture. Jim is a sole trader who manages all aspects of the

Which brand insulating oil tester is the best, GDYJ-503 is developed accord...

GDYJ-503 is developed according to the national standard GB-86 Insulating Oil Dielectric Strength Testing Method .The tester can test three cups of oil at the similar time. LCD scr

Ledger, “Ledger is said to be the principal book entry and the transactions...

“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.”

Accounting for investments, Contain the relevant authoritative literature o...

Contain the relevant authoritative literature on accounting for investments in held-to-maturity securities using the FASB's Codification Research System. What is the specific citat

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd