The following information applies to the questions displayed

The following information applies to the questions displayed below.] Prairie Corp. completed the following transactions in 2014, the first year of operation 1. Issued 19,000 shares of $5 par common stock at par. 2. Issued 1,800 shares of $34 stated value preferred stock at $36 per share. 3. Purchased 400 shares of common stock as treasury stock for $7.5 per share. 4. Declared a 5 percent cash dividend on preferred stock. 5. Sold 200 shares of treasury stock for $10.5 per share. 6. Paid the cash dividend on preferred stock that was declared in Event 4 7. Earned revenue of $71,400 and incurred operating expenses of $38,050 8. Appropriated $6,500 of retained earnings.

Solution

Answers

Event

Cash

Dividends payable

Preferred Stock

Common Stock

PIC in excess Preferred stock

PIC in excess Treasury stock

Treasury Stock

Retained Earnings

Appropriated RE

Accounts title for RE

1

$        95,000.00

$                95,000.00

2

$        64,800.00

$                61,200.00

$            3,600.00

3

$        (3,000.00)

$      3,000.00

4

$          3,060.00

$            (3,060.00)

Preferred stock dividend

5

$          2,100.00

$                   600.00

$    (1,500.00)

6

$        (3,060.00)

$       (3,060.00)

7a

$        71,400.00

$            71,400.00

Revenues

7b

$      (38,050.00)

$          (38,050.00)

Operating expenses

8

$            (6,500.00)

$              6,500.00

Appropriation

Ending Balances

$    1,89,190.00

$                       -  

$                61,200.00

$                95,000.00

$            3,600.00

$                   600.00

$      1,500.00

$            23,790.00

$              6,500.00

---Working

Event

Cash

Dividends payable

Preferred Stock

Common Stock

PIC in excess Preferred stock

PIC in excess Treasury stock

Treasury Stock

Retained Earnings

Appropriated RE

Accounts title for RE

1

=19000*5

=19000*5

2

=1800*36

=1800*34

=1800*2

3

=-400*7.5

=400*7.5

4

=61200*5%

-3060

Preferred stock dividend

5

=200*10.5

=200*(10.5-7.5)

=-200*7.5

6

-3060

-3060

7a

71400

71400

Revenues

7b

-38050

-38050

Operating expenses

8

-6500

6500

Appropriation

Ending Balances

TOTAL

TOTAL

TOTAL

TOTAL

TOTAL

TOTAL

TOTAL

TOTAL

TOTAL

This is based on above Ending Balances:

Stockholder\'s Equity

Common Stock

$       95,000.00

Preferred Stock

$       61,200.00

PIC in excess Preferred stock

$          3,600.00

PIC in excess Treasury stock

$             600.00

Total paid in Capital

$            1,60,400.00

Retained Earnings

Unappropriated Retained Earnings

$      23,790.00

Appropriated Retained earnings

$          6,500.00

Total retained Earnings

$                30,290.00

Treasury Stock

$                (1,500.00)

Total Stockholder\'s Equity

$            1,89,190.00

Event	Cash	Dividends payable	Preferred Stock	Common Stock	PIC in excess Preferred stock	PIC in excess Treasury stock	Treasury Stock	Retained Earnings	Appropriated RE	Accounts title for RE
1	$        95,000.00			$                95,000.00
2	$        64,800.00		$                61,200.00		$            3,600.00
3	$        (3,000.00)						$      3,000.00
4		$          3,060.00						$            (3,060.00)		Preferred stock dividend
5	$          2,100.00					$                   600.00	$    (1,500.00)
6	$        (3,060.00)	$       (3,060.00)
7a	$        71,400.00							$            71,400.00		Revenues
7b	$      (38,050.00)							$          (38,050.00)		Operating expenses
8								$            (6,500.00)	$              6,500.00	Appropriation
Ending Balances	$    1,89,190.00	$                       -	$                61,200.00	$                95,000.00	$            3,600.00	$                   600.00	$      1,500.00	$            23,790.00	$              6,500.00