Foley Corporation has the following capital structure at the beginning of the year:4% Preferred stock, $50 par value, 20,000 shares authorized,
Instructions
(a) Record the following transactions which occurred consecutively (show all calculations).1. A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.2. A 15% common stock dividend was declared. The average fair value of the common stock is $22 a share."3. Assume that net income for the year was $140,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion.
(b) Construct the stockholders' equity section incorporating all the above information."

Question

Foley Corporation has the following capital structure at the beginning of the year:4% Preferred stock, $50 par value, 20,000 shares authorized,  
Instructions
(a) Record the following transactions which occurred consecutively (show all calculations).1. A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.2. A 15% common stock dividend was declared. The average fair value of the common stock is $22 a share."3. Assume that net income for the year was $140,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion.
(b) Construct the stockholders' equity section incorporating all the above information."

Quizplus · Accepted Answer

The Answer of Foley Corporation has the following capital structure at the beginning of the year:4% Preferred stock, $50 par value, 20,000 shares authorized,  
Instructions
(a) Record the following transactions which occurred consecutively (show all calculations).1. A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.2. A 15% common stock dividend was declared. The average fair value of the common stock is $22 a share."3. Assume that net income for the year was $140,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion.
(b) Construct the stockholders' equity section incorporating all the above information."

Foley Corporation Has the Following Capital Structure at the Beginning