The stockholders equity accounts of Grouper Corp on January

Problem 11-2A (Part Level Submission) The stockholders\' equity accounts of Grouper Corp. on January 1, 2017, were as foliows Preferred Stock (8%, s 100 per noncumulative, 4,600 shares authorized) Common Stock ($4 stated value, 320,000 shares authorized) Pald-in Cepital in Excess of Par Value-Preferred Stock Pald-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (4,600 common shares) $276,000 1,066,666 13,800 512,000 691 500 36,800 During 2017, the corporation had the following transactions and events pertaining to its stockholders equity Feb. 1 Issued 4,580 shares of common stock for $27,480 Mar. 20 Purchased 1,650 additional shares of common treasury stock at $7 per share Oct. 1 Declared a 8% cash dividend on preferred stock, payable November 1 Nov. Paid the dividend declared on October 1 Dec. 1 Declared a $0.60 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017 Dec. 31 Determined that net income for the year was $276,400. Paid the dividend declared on December 1 (a) ournalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is require the account titles and enter 0 for the amounts. Round answers to 0 imal places, eG-5,27s.) Date Account Titles and Explanation Debit Credit Feb. 1 Mar. 20 Oct. 1 Nov. 1 Dec. 1 Dec. 31 To record net income) Dec. 31

Solution

Date Particulars Debit Credit 1-Feb Cash $27,480.00 Common stock(4580shares*$4) $18,320.00 Additional paid up capital $9,160.00 20-Mar Treasury stock(1650 shares*$7) $11,550.00 Cash $11,550.00 1-Oct Cash Dividends $22,080.00 Dividends payable(pref) $22,080.00 ($276000*8%) 1-Nov Dividend payable(pref) $22,080.00 Cash $22,080.00 1-Dec Cash Dividend $159,022.00 Dividend payable $159,022.00 $1066666/4 +4600 - (4580+1650)*.60 31-Dec Income Summary $276,400.00 retained earnings $276,400.00 31-Dec retained earnings $181,102.00 Cash dividends($22080+$159022) $181,102.00 31-Dec Dividend payable $159,022.00 Cash $159,022.00