Question 42 Transcribed Image Text: Issued 19,000 shares of common stBLR of $240,000. Oct. 2 Issued 600 shares of preferred stock for $140 per share. Issued 11,000 shares of common

Question 42 Transcribed Image Text: Issued 19,000 shares of common stBLR
of $240,000.
Oct. 2
Issued 600 shares of preferred stock for $140 per share.
Issued 11,000 shares of common stock for cash of $55,000.
Declared a $19,000 cash dividend for stockholders of record on Oct. 20. Use
a separate Dividends Payable account for preferred and common stock.
10
25
Paid the cash dividend.
Requirements
1. Record the transactions in the general journal.
2. Prepare the stockholders’cquity section of D-Mobile’s balance sheet at October
31, 2018. Assume D-Mobile’s net income for the month was $94,000.
P13-42A Journalizing dividends and treasury stock transactions and preparing
the stockholders’ equity section of the balance sheet
Learning Objectives 3, 4
Nov. 8 Treasury Stock $4,000
Deerborn Manufacturing Co. completed the following transactions during 2018:
Declared a cash dividend on the 6%, $103 par noncumulative preferred
stock (1,050 shares outstanding). Declared a $0.20 per share dividend on
the 100,000 shares of $2 par value common stock outstanding. The date
of record is January 31, and the payment date is February 15.
Jan. 16
Feb. 15
Paid the cash dividends.
Jun. 10 Split common stock 2-for-1.
Jul. 30 Declared a 30% stock dividend on the common stock. The market value
of the common stock was $9 per share.
Aug. 15
Distributed the stock dividend.
Oct. 26
Purchased 1,000 shares of treasury stock at $8 per share.
Nov. 8
Sold 500 shares of treasury stock for $10 per share.
30
Sold 300 shares of treasury stock for $4 per share.
Requirements
1. Record the transactions in Deerborn’s general journal.
2. Prepare the Deerborn’s stockholders’ equity section of the balance sheet as of
December 31, 2018. Assume that Deerborn was authorized to issue 2,600 shares
of preferred stock and 400,000 shares of common stock. Both preferred stock and
common stock were issued at par. The ending balance of retained earnings as of
December 31, 2018, is $2,060,000.

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