I KEEP POSTING THIS QUESTION I NEED THE RIGHT ANSWERS FOR TH

I KEEP POSTING THIS QUESTION... I NEED THE RIGHT ANSWERS FOR THE WRONG ONES IN THE RED!!

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Problem 14-2A The stockholders\' equity accounts of Karp Company at January 1, 2017, are as follows. Preferred Stock, 6%, $50 par Common Stock, $7 par Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings $640,000 1,095,500 185,000 304,500 791,000 There were no dividends in arrears on preferred stock. During 2017, the company had the following transactions and events. July 1 Declared a $0.80 cash dividend per share on common stock. Aug. 1 Discovered $28,500 understatement of depreclation expense in 2016. (Ignore income taxes.) Sept. 1 Paid the cash dividend declared on July 1. Dec. 1 Declared a 15% stock dividend on common stock when the market price of the stock was $20 per share. 15 31 31 Declared a 6% cash dividend on preferred stock payable January 15, 2018. Determined that net income for the year was $392,000. Recognized a $203,000 restriction of retained earnings for plant expansion.

Solution

Answer 1. Journal Entry Date Particulars Dr. Amt Cr. Amt. 1-Jul Cash Dividends    125,200.00 156,500 Shares X $0.80 Dividend Payable    125,200.00 156,500 Shares X $0.80 (Record the dividend declared on Common Stock) 1-Aug Retained Earnings      28,500.00 Accumulated Depreciation      28,500.00 (record the understatement of Depreciation Expense for 2016) 1-Sep Dividend Payable - Common Stock    125,200.00 Cash    125,200.00 (record the Dividend paid declared on Jul-1) 1-Dec Stock Dividends          469,500.00 156,500 Shares X 15% X $20 Common Stock Dividend Distributable    164,325.00 156,500 Shares X 15% X $7 Paid-in Capital in Excess of Par-Common Stock    305,175.00 156,500 Shares X 15% X $13 (record the stock dividend declared) 15-Dec Cash Dividends      38,400.00 $640,000 X 6% Dividend Payable      38,400.00 (Record the dividend declared on Preferred Stock) 31-Dec Income Summary                      392,000.00 Retained Earnings    392,000.00 (To Close Net Income) 31-Dec Retained Earnings                                     163,600.00 Cash Dividends    163,600.00 (To Close cash dividends) 31-Dec Retained Earnings                                     469,500.00 Stock Dividends    469,500.00 (To Close Stock dividends) Answer 2. Preferred Stock Date Explanation Ref Debit Credit Balance 1-Jan Balance        640,000.00 Common Stock Date Explanation Ref Debit Credit Balance 1-Jan Balance    1,095,500.00 Common Stock Dividends Distributable Date Explanation Ref Debit Credit Balance 1-Dec Stock Dividends    164,325.00        164,325.00 Paid-in Capital in Excess of Par-Preferred Stock Date Explanation Ref Debit Credit Balance 1-Jan Balance        185,000.00 Paid-in Capital in Excess of Par-Common Stock Date Explanation Ref Debit Credit Balance 1-Jan Balance        304,500.00 1-Dec Stock Dividends    305,175.00        609,675.00 Retained Earnings Date Explanation Ref Debit Credit Balance 1-Jan Balance        791,000.00 1-Aug Prior Period Adjustment - 2016 - Dep.      28,500.00        762,500.00 31-Dec Income - 2017    392,000.00    1,154,500.00 31-Dec Cash Dividends    163,600.00        990,900.00 31-Dec Stock Dividends    469,500.00        521,400.00 Cash Dividends Date Explanation Ref Debit Credit Balance 1-Jul Dividend Payable    125,200.00        125,200.00 15-Dec Dividend Payable      38,400.00        163,600.00 31-Dec Retained Earnings    163,600.00                         -   Stock Dividends Date Explanation Ref Debit Credit Balance 1-Dec    469,500.00        469,500.00 31-Dec                     -      469,500.00                         -   Answer 3. KARP COMPANY Retained Earning Statement For the Year Ended Dec 31, 2017 Balance, Jan 1, as Reported        791,000.00 Correction of 2016 Depreciation Expense        (28,500.00) Balance, Jan 1, as adjusted        762,500.00 Add: Net Income / (Loss)        392,000.00 Less: Cash Dividends - Preferred          38,400.00 Stock Dividends - Common        469,500.00 Cash Dividends - Common        125,200.00        633,100.00 Balance, Dec-31        521,400.00 Answer 4. KARP COMPANY Balance Sheet (Partial) For the Year Ended Dec 31, 2017 Stockholders\' Equity Paid-in Capital Capital Stock Preferred Stock        640,000.00 Common Stock    1,095,500.00 Common Stock Dividends Distributable        164,325.00    1,259,825.00 Total Capital Stock    1,899,825.00 Additional Paid-in Capital Paid-in Capital in Excess of Par-Preferred Stock        185,000.00 Paid-in Capital in Excess of Par-Common Stock        609,675.00 Total Additional Paid-in Capital        794,675.00 Total Paid-in Capital    2,694,500.00 Retained Earnings        521,400.00 Total Stockholders\' Equity    3,215,900.00