Accounting

This assignment will give you experience with complex accounting transactions. In this assignment, you will prepare the journal entries for the issuance and transactions related to the equity section of the balance sheet.

1. Download AC216 Unit 5 Assignment 2 – Equity Entries Download AC216 Unit 5 Assignment 2 – Equity Entries[Excel Spreadsheet]
4. Follow the instructions found in the template
5. Rename your spreadsheet adding your last name to the file name (Ex. AC216 Unit 5 Assignment 2 – Equity Entries Name)
8. Submit your completed spreadsheet

Part 2

This assignment will show you the accounting changes that occur in the equity section of the balance sheet when the company is unable to pay cumulative preferred dividends. In addition, you will calculate the book value for both common and preferred stock.

1. Download AC216 Unit 5 Assignment 4 – Dividend in Arrears Download AC216 Unit 5 Assignment 4 – Dividend in Arrears[Excel Spreadsheet]

Follow the instructions found in the template

2. Rename your spreadsheet adding your last name to the file name (Ex. AC216 Unit 5 Assignment 4 – Dividend in Arrears Name)

Submit your completed spreadsheet

Part 3

This assignment will give you experience with complex accounting transactions. In this assignment, you will prepare the journal entries for the equity section of the balance sheet and prepare the shareholder equity section of the balance sheet.

1. Download AC216 Unit 5 Assignment 5 – Share Holder Equity Download AC216 Unit 5 Assignment 5 – Share Holder Equity[Excel Spreadsheet]

Follow the instructions found in the template

2. Rename your spreadsheet adding your last name to the file name (Ex. AC216 Unit 5 Assignment 5 – Share Holder Equity Name)

Submit your completed spreadsheet

Equity Journal Entries
Salem Corporation issues 19,000 shares of its common stock for $152,000 cash on
February 20. Prepare journal entries to record this event under each of the following
separate situations.
a. The stock has a $2 par value.
b. The stock has neither par nor stated value.
c. The stock has a $5 stated value.
No
A
B
C
General Journal
Debit
Credit
Dividends in arrears
Use the following information for Portland Corporation to calcualte Equity data.
Portland Corporation
Market price
$85
Par Value
$?
$?
Preferred stock
Common stock
Retained earnings
1 Current Common Market Price:
2 What is the par value for the preferred stock?
What is the par value for the common stock?
3 What is the book value of Preferred and Common if 2 years of dividends are in arrears?
a. Dividends in arrears
par value
x
div per share
x
1 yr div in arrears
x
b. Preferred stock Book Value per share
Preferred Stock Equity $
Dividend in arrears $
Total Preferred Equity $
Total Preferred Stock Equity $
# shares outstanding
c. Common stock book value per share
Common Equity $
Retained earnings – Dividend in arrears $
Total Common Equity $
Total Common Equity $
# shares outstanding
rporation
Shares out
1,000
4,000
ends are in arrears?
dividend %
ann div per share
# shares
years in arrears
Dividend in arrears
5%
Cumulative
$
$
$
$
Total $$
50,000
80,000
150,000
280,000
Preferred Book value per share
Common Book value per share
Share Holder equity
Utah Corporation reports the following components of stockholders’ equity on December 31
Common stock—$20 par value, 100,000 shares authorized,
40,000 shares issued and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
Total stockholders’ equity
800,000
60,000
430,000
1,290,000
During thea year, the following transactions affected its stockholders’ equity accounts.
Jan.
Jan.
2
5
Purchased 4,500 shares of its own stock at $15 cash per share.
Directors declared a $2 per share cash dividend payable on February
28 to the February 5 stockholders of record.
Feb.
July
Aug.
Sept.
Oct.
Dec.
28
6
22
5
28
31
Paid the dividend declared on January 5.
Sold 1,688 of its treasury shares at $19 cash per share.
Sold 2,812 of its treasury shares at $12 cash per share.
Directors declared a $2 per share cash dividend payable on October
28
to the
the dividend
September
25 stockholders
of record.
Paid
declared
on September
5.
Closed the $408,000 credit balance (from net income) in the Income
Summary account to Retained Earnings.
Required:
1. Prepare journal entries to record each of these transactions.
2. Prepare a statement of retained earnings for the year ended December 31, 2019.
3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2019.
No
Date
1
2-Jan
2
5-Jan
3
28-Feb
4
6-Jul
5
22-Aug
General Journal
Debit
6
5-Sep
7
28-Oct
8
31-Dec
Statement of Retained Earnings
31-Dec
Beginning retained earnings
Ending retained earnings
Stockholders’ Equity Section of the Balance Sheet
31-Dec
Total contributed capital
Total stockholders’ equity
on December 31
December 31, 2019.
Credit