Accounting Module 5 Assignment

Accounting Module 5 Assignment

Question Pearson began 2012 with 30,000 $1 common shares issued and outstanding. Paid in capital in excess of par was $25,000 and retained earnings were $175,000. Net
income for 2012 was $22,000. Peason had outstanding 5000 shares of $4.00 par, 5% preferred stock. Pearson Wood Supplies completed the following transactions
for 2012.
Jan

March
April
June
Dec

2
6

20
15
10
14
22

Issued 10,000 shares $1 par common stock for $10 per share
Declared a cash dividend on 5,000 shares of 5% $4 par preferred stock and a $.20 per share dividend on 40,000 shares of common stock outstanding.
The date of record is January 15 and the date of payment is Jauary 20.
Paid the cash dividend
Declared a 2-for-1 stock split by calling in the 40,000 shares of $1 par common stock and issuing new stock in its place Declared and distributed a 10% stock dividend on the common stock when the market value was $12 per share
Purchased 1,000 shares of common stock for the treasury for $13 per share
Sold 500 treasury shares for $15 per share

Requirements:

1 Record the transactions in the journal.
Journal
Date

2 Accounts

Post Ref.

Debit

Credit

Prepare the statement of shareholders' equity for 20XX.
Pearson Wood Supplies
Statement of Shareholders' Equity
For the year ended 2012
Preferred stock

Common Stock

Additional Paid in
Capital

Retained Earnings

Treasury Stock