Your Questions About Summary Of Stock Market 2011

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David asks…

what would i need to put in a business plan for a new business-i will give a good rating to anyone who answers?

i am starting a new small business and i know that i need to write a business plan–but that’s the problem: i don’t know what basic stuff i need to write/type into that business plan. yes, i know, i am clueless, but please help!

-thankyou

Justin answers:

BUSINESS SUMMARY

Business Name:Super Pets

Status:Partnership or Sole Trader

Owners’ Details: your name and home address

Super Pets is a new business venture providing a shop selling pet foods, with an area for advertising pets for sale.

PREMISES

235 London Road
Smalltown
AB12 3CD

We intend to rent the above premises, which was last used as a grocery store in May 2010. The downstairs has a large shop area and an office, kitchen and staff toilet. The upstairs comprises a separate self-contained flat, which we intend to rent out. We hope to complete the rental agreement in the summer of 2011 and open the shop within two months, following changes to the shop’s signage and refurbishment.

LOCATION
The shop is situated on London Road, Smalltown, in a small parade of shops. This is particularly suitable for our purposes because it has these advantages:

On a well-served bus route
High amount of passers-by on foot
Short distance from Smalltown’s main shopping area
Young families with school-aged children walk past on way to/from school
Secondary school children have dispersed by the time they pass
Bank and Post Office are in walking distance

OPENING HOURS
Initially, we expect that Super Pets would open from 10pm to 5pm on weekdays and Saturdays, extending to longer opening hours during the pre-Christmas period.

COMPETITION

Other pets shops in the area, and whether you would be offering anything different/better.

CUSTOMERS

Pet owners
Gift buyers

STOCK

We will be sourcing a variety of items from online wholesalers, including:

Pet foods
Bedding materials
Accessories such as food bowls and collars

PRICING AND PROFIT MARGIN

We will rely on friendly service and add-ons to create the volume of sales needed to reach our sales targets. Our shop prices are likely to range from 50p to around £50, with a profit margin of about 40%.

MARKETING

Due to the shop’s prominent position, we will only be using leaflets and free online advertising to advertise Super Pets.

ESTIMATED TURNOVER

Estimated sales for the first complete year of trading: £37,000

MONTH£

Aug 1700
Sep 2100
Oct 2500

Nov 3100
Dec 3500
Jan 2800

Feb 3000
Mar 3200
Apr 3400

May 3600
Jun 4000
Jul 4100

37000

Michael asks…

Can someone help me with editing my resume?

Hello-
I just want to make sure my resume is top of the line. I know when editing something its always good to have someone else read it over. I am open to any constructive responses. It is pasted below!

Thank You

Professional Profile
Objective Summary
Sales and marketing professional looking to obtain a position were I could grow professional and apply my knowledge of either Sales & Marketing or Web & Graphic Design.

Skills summary:
• Can operate a variety of computer software: Adobe Creative Suite (Photoshop, Indesign, Illustrator, Fireworkrs
& aftereffects) , Corel Suite, Quick books, Microsoft office suite.
• Great experience with B2B sales and face to face presentations.
• Excellent understanding of the management role and how to motivate and creative a productive sales team.
• Can complete A Successful marketing strategy consisting of business branding, interactive management (web
presence) and public relations.

Professional Experience
Graphic Designer/Web Designer
2011-2012 Bluephaze Graphics and design, Orangeburg, South Carolina
Description:
Web Design
– Custom WordPress
– Sales / Landing Pages
– HTML, XHTML, JavaScript, CSS, PHP, AJAX, XML
– Maintenance & Development

Graphic Design
– Brochures
– Banners
– Flyers
– Product, Business & Self Branding

Custom Logo Design
– Corporate or Professional
– Creative Logo
– Personal Logo
– 3D

Supervising insurance broker
2008-2010 American Income/ Conard Agency, Waldorf, Maryland
Description:
• Worked independently as an insurance broker advising a variety of
Clients on their insurance needs.

• Worked every phase of the sales cycle from prospecting and lead
Generation to face to face sales and maintaining current clients.
• Helped my superiors run a product office by training new agents,
Conducting meetings and maintaining sales quotes of other agents.
• Responsible for over 150k in production in a fiscal year.
• October, November and December Maryland Top Producer for
2009.
• Sent to Leadership development school in Dallas, Texas June
2009.
• Rank top 50 out of 500 agents in my contract level in the country.
• Promoted from general agent to supervising agent in 6 months of Employment.

Route driver/ warehouse worker
2007-2008 Royall Dinning services, Owings, Maryland
Description:
• Worked sufficiently during my shift making sure warehouse
Operations were completed on time.
• Operated forklift unloading and loading trucks.
• Keep track of warehouse inventory.
• National Route Driver association certified
• Level 2 forklift certification operator

Sales Associate
2006-2007 Shoe Department, Prince Frederick, Maryland
Description:
• Helped customers with any questions or problems they may have.
• Stocked shelves and organized inventory in supply room.
• Meet weekly sales quotas and help promote monthly advertising.
Achievements:
• Was given a raise after 6 months.

Underground utilities specialist
2002-2006 summer job Earthworks Incorporated, Chesapeake Beach, Maryland
Description:
• Worked at various job sites clearing and developing land to
Specifications.
• Operated a variety of machinery to complete different task on the
job site such as skid steer loaders, bulldozers and other machinery.
• Install underground utilities such as underground pipeline and
conduit.

Education
• College Of Southern Maryland, Prince Frederick, MD
2007-2009
Business admin. / management
• Huntingtown High School
2001-2006
High School Diploma
• Calvert Career Center
2002-2004
Electricity 1&2

Justin answers:

Ouch.
— What is “professional profile” doing there. Dump it.
— Why are you using the word “summary” throughout. Dump it.
— A position where I “could” grow? That is so passive and awful. Where I “will” grow (or, at the very least, “can” grow.)
— Sales & Marketing or Web & Graphic Design – no good – you need to make two different resumes for these, not just custom cover letters. These jobs are radically different.
— the skills you list are bullshit, except for the software – you cover that kind of information when you talk about previous work. As for the software, just say Expert or Proficient or Certified or whatever in x, x, and x.
— your graphic design experience looks like a continuation of skills – what programs are you proficient in – move those into skills
— it’s a little obvious that if you can design a brochure, you can design a flyer. Break this out into clearer categories – print, online, etc.
— move some of your nebulous skills summaries into the jobs themselves – but say what you actually did
— dump the insurance details on the graphics resume and most of the graphics details on the marketing resume
— dump all the forklift and underground utilities details unless you want another job driving a forklift. And what does “worked sufficiently” mean? That sounds like you just barely did what was needed to get by.
— You have tense issues throughout the whole thing. You “stocked” you “meet” – wrong.
— “was given a raise after 6 months” does NOT belong on a resume.

Charles asks…

Need help journalizing the transactions, events, and closing entries.?

The stockholders’ equity accounts of Falk Company at January 1, 2012, are as follows.

Preferred Stock, 6%, $50 par$630,000
Common Stock, $5 par775,500
Paid-in Capital in Excess of Par Value-Preferred Stock202,900
Paid-in Capital in Excess of Par Value-Common Stock295,300
Retained Earnings803,300

There were no dividends in arrears on preferred stock. During 2012, the company had the following transactions and events.

July 1 Declared a $0.60 cash dividend on common stock.
Aug. 1 Discovered $25,100 understatement of 2011 depreciation. Ignore income taxes.
Sept. 1 Paid the cash dividend declared on July 1.
Dec. 1 Declared a 11% stock dividend on common stock when the market value of the stock was $20 per share.
Dec. 15 Declared a 6% cash dividend on preferred stock payable January 15, 2013.
Dec. 31 Determined that net income for the year was $399,400.
Dec. 31 Recognized a $216,900 restriction of retained earnings for plant expansion.

JOURNALIZE the transactions, events, and closing entries.

Enter the beginning balances in the accounts, and post to the stockholders’ equity accounts

Complete the retained earnings statement for the year

Prepare a stockholders’ equity section at December 31, 2012

Justin answers:

July 1 Declared a $0.60 cash dividend on common stock.
(775,500 / 5) = 155,100 common shares outstanding x 0.60 = 93,060
Dr Cash Dividend 93,060
Cr Dividends Payable 93,060

Aug. 1 Discovered $25,100 understatement of 2011 depreciation. Ignore income taxes.
Dr Retained Earnings 25,100
Cr Accumulated Depreciation 25,100

Sept. 1 Paid the cash dividend declared on July 1.
Dr Dividends Payable 93,060
Cr Cash 93,060

Dec. 1 Declared a 11% stock dividend on common stock when the market value of the stock was $20 per share.
155,100 x 13% x 20 = 403,260 total dividend
155,100 x 13% x 5 = 100,815 par value
Dr Stock Dividends 403,260
Cr Paid-in Capital in Excess of Par Value-Common Stock 302,445
Cr Stock Dividends Distributable 100,815
*There are now 175,263 common shares outstanding

Dec. 15 Declared a 6% cash dividend on preferred stock payable January 15, 2013.
630,000 x 6% = 37,800
Dr Cash Dividends 37,800
Cr Dividends Payable 37,800

Dec. 31 Determined that net income for the year was $399,400.
Dr Income Summary 399,400
Cr Retained Earnings 399,400

Dec. 31 Recognized a $216,900 restriction of retained earnings for plant expansion.
No formal journal entry is needed. Normally restrictions on retained earnings are disclosed by note to the financial statements.

Complete the retained earnings statement for the year

Retained Earnings, January 1, 2012 . . . . $803,300
Net Income . . . . . . . . . . . . . . . . . . . . . . .399,400 . .. .$1,202,700

Less: Dividends . . . . . . . . . . . . . . . . . . . .534,120
Less: Prior period adjustment . . . . . . . . . . .25,100
Total deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .559,220

Retained earnings, December 31, 2012 . .. . . . . . . . . . . . $643,480

Prepare a stockholders’ equity section at December 31, 2012

Preferred Stock, 6%, $50 par . . . . . . . . . . . . . . . . . . . . .$630,000
Common Stock, $5 par . . . . . . . . . . . . . . . . . . . . . . . . . .876,315
Paid-in Capital in Excess of Par Value-Preferred Stock . . . 202,900
Paid-in Capital in Excess of Par Value-Common Stock . . . 597,745
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 643,480

Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . .$2,950,440

Joseph asks…

Accounting Question – Definition of Retained Earnings?

So if I own stock in a company, and the company gives out common stock dividend payments, do they send me a check? Do they give me an option to reinvest and buy stock at the par value? market value? If I did reinvest that money, would it be called retained earnings?

( I am in Accounting I in college and I am trying to understand Corporate Stock Accounting )

Thanks again.

Justin answers:

Retained Earnings is the net income earned by a corporation that is retained in the business, i.e. Not distributed in a dividend. Dividends can be done in several ways. Cash dividends are simply that, and the shareholder would receive a check for their portion of the dividend. There are also stock dividends, in which the shareholder may receive additional shares of company stock as the dividend. This would not be considered Retained Earnings, but rather the amount of the dividend would increase the Common Stock account, and reduce the amount that goes into Retained Earnings. Here are a few examples:

Net Income for 2011: $10 million
Dividend Declared: $2 million

With the initial closing of the ledger, Retained Earnings would be increased by the $10 million in net income.

Debit Income Summary $10 million
Credit Retained Earnings $10 million

If a cash dividend is declared, the company would post a liability for dividend payable, and reduce Retained Earnings for the amount.

Debit Retained Earnings $2 million
Credit Dividends Payable $2 million

When the dividend is paid, the liability would be cleared with the cash payout.

Debit Dividends Payable $2 million
Credit Cash $2 million

Now if a stock dividend is declared, the amount of the divided would be moved from Retained Earnings to the stock account on balance sheet.

Debit Retained Earnings $2 million
Credit Common Stock $2 million

Richard asks…

Balance on the Retained Earnings Account?

The Shareholder’s equity section of Dela Pena, Inc. as at Dec. 31, 2010,is shown below:

Ordinary Shares, P20 par; 500,000 shares authorized;
200000 shares issued and outstanding…….P4,000,000
Share Premium…………….P3,600,000
Retained Earnings………..P5,700,000
Total Shareholder’s Equity………P 13,300,000

During the month of Jan. 2011, the following events occurred:

Jan. 12 The board of directors declared a 2-for-1 ordinary share split. At the time of the split, the market price was P120 per share.

Jan. 20 A 5% share dividend was declared and issued by the board of directors. At the time of the declaration, the market price of the stock was P55 per share.

Jan. 22 The corporation repurchased 5,000 shares of it’s ordinary shares at P54 per share.

Jan. 28 The board of directors declared a cash dividend of P0.45 per share, payable on February 28.

Jan. 30 A 20% share dividend was declared and issued. At the time of the declaration, the market price of the stock was P52 per share.

Jan. 31 The profit for the month amounted to P360,000.

Requirement:

Prepare the Journal Entry for Each Transactions.
What is the balance on Retained Earnings at the end of January?
What Is the total shareholder’s equity at the end of January?

Justin answers:

Ordinary Shares, P20 par; 500,000 shares authorized;
200,000 shares issued and outstanding…….P4,000,000
Share Premium……….. ………. ………. …….P3,600,000
Retained Earnings………. ………. ……… …..P5,700,000
Total Shareholder’s Equity……… ………. …..P13,300,000

Prepare the Journal Entry for Each Transactions.
Jan. 12 The board of directors declared a 2-for-1 ordinary share split. At the time of the split, the market price was P120 per share.
No entry is needed. But there are now 400,000 ordinary shares with P10 par

Jan. 20 A 5% share dividend was declared and issued by the board of directors. At the time of the declaration, the market price of the stock was P55 per share. (This is assumed to be a small dividend, so we use the market price)
This means that 5% x 400,000 shares will be issued, i.e. 20,000 new shares will be issued.
Dr Retained earnings P1,100,000 [20,000 shares x P55]
Cr Ordinary shares P200,000 [20,000 shares x P10 par]
Cr Share premium P900,000
There are now 420,000 ordinary shares issued and outstanding.

Jan. 22 The corporation repurchased 5,000 shares of it’s ordinary shares at P54 per share.
Dr Treasury stock P270,000
Cr Cash P270,000
There are now 420,000 ordinary shares issued but 415,000 shares outstanding.

Jan. 28 The board of directors declared a cash dividend of P0.45 per share, payable on February 28.
Dr Retained earnings P186,750 [415,000 shares x P0.45]
Cr Dividend payable P186,750

Jan. 30 A 20% share dividend was declared and issued. At the time of the declaration, the market price of the stock was P52 per share. (This is assumed to be a large dividend, so we use par value)
This means that 20% x 415,000 shares will be issued, i.e. 83,000 new shares will be issued.
Dr Retained earnings P830,000 [83,000 shares x P10 par]
Cr Ordinary shares P830,000
There are now 503,000 ordinary shares issued, but 498,000 shares outstanding.

Jan. 31 The profit for the month amounted to P360,000.
Dr Income summary P360,000
Cr Retained earnings P360,000

What is the balance on Retained Earnings at the end of January?
Bal. At Jan. 1, P5,700,000
– P1,100,000
– P186,750
– P830,000
+ P360,000
= Bal. At Jan 31, P3,943,250

What Is the total shareholder’s equity at the end of January?
Ordinary Shares, P10 par; 503,000 shares issued and
498,000 shares outstanding…… ………. ..P5,030,000
Share Premium……….. ………. ………. …….P4,500,000
Retained Earnings………. ………. ……… …..P3,943,250
less
Treasury stock (5,000 shares ) ………. ……(P270,000)
Total Shareholder’s Equity……… ………. ….P13,203,250

Mark asks…

Accounting homework help, General journal and preparing stockholders equity section?

The balance sheet of Mundo Foods, at December 31, 2011, reported 90,000 shares of no-par common stock authorized with 50,000 shares issued and a common stock balance of $170,000. Retained Earnings had a balance $140,000. During 2012 the company completed the following selected transactions:

March 15 – Purchased 9,000 shares of treasury stock at $7 per share.

April 30 – Distributed a 10% stock dividend on the outstanding shares of common stock. The market value of common stock was $10 per share.

Dec 31 – Earned net income of $105,000 during the year. Closed net income to Retained Earnings.

Requirements
1. Record the transactions in the general journal. Explanations are not required.

2. Prepare the stockholders’ equity section of Mundo Health Food’s balance sheet at December 31, 2012.

Justin answers:

March 15 – Purchased 9,000 shares of treasury stock at $7 per share.
Dr Treasury Stock 63,000
Cr Cash 63,000

April 30 – Distributed a 10% stock dividend on the outstanding shares of common stock. The market value of common stock was $10 per share.
(50,000 – 9,000) x 0.10 x $10 = $41,000 stock dividend
Dr Retained Earnings 41,000
Cr Common Stock 41,000

Dec 31 – Earned net income of $105,000 during the year. Closed net income to Retained Earnings.
Dr Income Summary 105,000
Cr Retained Earnings 105,000

2. Prepare the stockholders’ equity section of Mundo Health Food’s balance sheet at December 31, 2012.

Stockholders’ Equity
Common Stock . . . . . . . . . . . . . . . .$211,000
Retained Earnings . . . . . . . . . . . . . . .204,000 . . . . . .$415,000
Less: Treasury Stock . . . . . . . . . . . . . . . . . . . . . . . . . . 63,000
Total Stockholders’ Equity . . . . . . . . . . . . . . . . . . . . .$352,000

Thomas asks…

Accounting homework help please!?

The balance sheet of Mundo Foods, at December 31, 2011, reported 90,000 shares of no-par common stock authorized with 50,000 shares issued and a common stock balance of $170,000. Retained Earnings had a balance $140,000. During 2012 the company completed the following selected transactions:

March 15 – Purchased 9,000 shares of treasury stock at $7 per share.

April 30 – Distributed a 10% stock dividend on the outstanding shares of common stock. The market value of common stock was $10 per share.

Dec 31 – Earned net income of $105,000 during the year. Closed net income to Retained Earnings.

Requirements
1. Record the transactions in the general journal. Explanations are not required.

2. Prepare the stockholders’ equity section of Mundo Health Food’s balance sheet at December 31, 2012.

Thanks for any help.

Justin answers:

Requirement 1

2012
March 15
Debit Treasury Stock $63,000 [9,000 shares x $7 per share]
Credit Cash $63,000

April 30
Debit Retained Earnings $41,000
Credit Common Stock $41,000 [41,000* shares x 10% = 4,100 new shares x $10 per share]
[50,000 shares issued minus 9,000 shares of treasury stock = *41,000 shares outstanding]

December 31
Debit Income and Expense Summary $105,000
Credit Retained Earnings $105,000

Requirement 2

Mundo Health Foods
Partial Balance Sheet
December 31, 2012

Stockholders’ Equity
Common stock, no par value, 90,000 shares authorized, 54,100 shares issued, 9,000 shares in the treasury, 45,100 shares outstanding $211,000
Retained earnings $245,000 (restricted by treasury stock $63,000)
Treasury stock, 9,000 shares ($63,000)
Total stockholders’ equity $393,000

George asks…

Help with accounting homework?..?

I need some help figuring out the retained earnings statement for my final accounting assignment. Any help is appreciated! Here is the information from the problem:
The stockholders’ equity accounts of Falk Company at January 1, 2012, are as follows.

Preferred Stock, 6%, $50 par $570,000
Common Stock, $5 par 810,000
Paid-in Capital in Excess of Par—Preferred Stock 198,700
Paid-in Capital in Excess of Par—Common Stock 312,900
Retained Earnings 805,300

There were no dividends in arrears on preferred stock. During 2012, the company had the following transactions and events.

July 1 Declared a $0.6 cash dividend on common stock.
Aug. 1 Discovered $25,600 understatement of 2011 depreciation on equipment. 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 $19 per share.
15 Declared a 6% cash dividend on preferred stock payable January 15, 2013.
31 Determined that net income for the year was $389,500.
31 Recognized a $197,900 restriction of retained earnings for plant expansion.

July 1 Declared a $0.6 cash dividend on common stock.
810,000 / $5 par value = 162,000 common shares outstanding
162,000 x 0.60 = $97,200 dividends
Dr Cash Dividends 97,200
Cr Common Dividends Payable 97,200

Aug. 1 Discovered $25,600 understatement of 2011 depreciation on equipment. Ignore income taxes.
Prior period adjustments are debited to retained earnings.
Dr Retained Earnings 25,600
Cr Accumulated Depreciation–Equipment 25,600

Sept. 1 Paid the cash dividend declared on July 1.
Dr Common Dividends Payable 97,200
Cr Cash 97,200

Dec. 1 Declared a 10% stock dividend on common stock when the market value of the stock was $19 per share.
162,000 x 19 x 10% = $307,800 amount of dividend
162,000 x $5 x 10% par value = $81,000 dividend distributable
Dr Stock Dividends 307,800
Cr Stock Dividend Distributable 81,000
Cr Paid-in Capital in Excess of Par, Common Stock 226,800

15 Declared a 6% cash dividend on preferred stock payable January 15, 2013.
570,000 x 6% = $34,200 dividend
Dr Cash Dividends 34,200
Cr Preferred Dividends Payable 34,200

31 Determined that net income for the year was $389,500.
Dr Income Summary 389,500
Cr Retained Earnings 389,500

Dr Retained Earnings 131,400
Cr Cash Dividends 131,400

Dr Retained Earnings 307,800
Cr Stock Dividends 307,800

31 Recognized a $197,900 restriction of retained earnings for plant expansion.
No journal entry is required. Usually put in as a note to the financial statements.

Justin answers:

With the information you already have, the retained earnings statement is simple. Add the net income to the beginning balance, then subtract the dividends.

Retained earnings, January 1, 2012 . . . . . . . $805,300
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . 389,500 . . . . $1,194,800

Less:
Cash dividends . . . . . . . . . . . . . . . . . . . . . . .131,400
Stock dividends . . . . . . . . . . . . . . . . . . . . . . 307,800 . . . . . . 439,200

Retained earnings, December 31, 2012 . . . . . . . . . . . . . . . .$. 755,600

*Notes to the financial statements: $197,500 of retained earnings is restricted for plant expansion.

Ken asks…

Help with account homework please!?

I’m on my last homework assignment for accounting. I’ve struggled this whole time and to make it worse for our last assignment there aren’t even any links on the website to give examples. I’d appreciate any help!
The stockholders’ equity accounts of Falk Company at January 1, 2012, are as follows.

Preferred Stock, 6%, $50 par $570,000
Common Stock, $5 par 810,000
Paid-in Capital in Excess of Par—Preferred Stock 198,700
Paid-in Capital in Excess of Par—Common Stock 312,900
Retained Earnings 805,300

There were no dividends in arrears on preferred stock. During 2012, the company had the following transactions and events.

July 1 Declared a $0.6 cash dividend on common stock.
Aug. 1 Discovered $25,600 understatement of 2011 depreciation on equipment. 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 $19 per share.
15 Declared a 6% cash dividend on preferred stock payable January 15, 2013.
31 Determined that net income for the year was $389,500.
31 Recognized a $197,900 restriction of retained earnings for plant expansion.

I need to journalize the transactions. I have part of it done on my homework website but it wont let me paste it on here to show the parts I already have filled in without it getting all jumbled…I’ve tried to type what I have on here the best that I can. Thanks in advance for any help you can give me!

Date——Account Titles and Explanation——–Debit–Credit
July 1__Cash Dividends__________________?_____0
____________?_________________________0____?
Aug 1_______?_________________________?_____0
_______Accumulated Depreciation-Equip____0_____?
Sept1__Dividends Payable________________?_____0
____________?_________________________0_____?
Dec 1__Stock Dividends__________________?_____0
____________?_________________________0_____?
____________?_________________________0_____?
Dec 15______?_________________________?_____0
_______Dividends Payable________________0_____?
Dec 31______?_________________________?_____0
_______Retained Earnings(to close net income)__0_?
_______Retained Earnings________________?_____0
_______? (to close cash dividends)_________0_____?
_______Retained Earnings________________?_____0
_______?(to close stock dividends)_________0_____?

Justin answers:

July 1 Declared a $0.6 cash dividend on common stock.
810,000 / $5 par value = 162,000 common shares outstanding
162,000 x 0.60 = $97,200 dividends
Dr Cash Dividends 97,200
Cr Common Dividends Payable 97,200

Aug. 1 Discovered $25,600 understatement of 2011 depreciation on equipment. Ignore income taxes.
Prior period adjustments are debited to retained earnings.
Dr Retained Earnings 25,600
Cr Accumulated Depreciation–Equipment 25,600

Sept. 1 Paid the cash dividend declared on July 1.
Dr Common Dividends Payable 97,200
Cr Cash 97,200

Dec. 1 Declared a 10% stock dividend on common stock when the market value of the stock was $19 per share.
162,000 x 19 x 10% = $307,800 amount of dividend
162,000 x $5 x 10% par value = $81,000 dividend distributable
Dr Stock Dividends 307,800
Cr Stock Dividend Distributable 81,000
Cr Paid-in Capital in Excess of Par, Common Stock 226,800

15 Declared a 6% cash dividend on preferred stock payable January 15, 2013.
570,000 x 6% = $34,200 dividend
Dr Cash Dividends 34,200
Cr Preferred Dividends Payable 34,200

31 Determined that net income for the year was $389,500.
Dr Income Summary 389,500
Cr Retained Earnings 389,500

Dr Retained Earnings 131,400
Cr Cash Dividends 131,400

Dr Retained Earnings 307,800
Cr Stock Dividends 307,800

31 Recognized a $197,900 restriction of retained earnings for plant expansion.
No journal entry is required. Usually put in as a note to the financial statements.

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