| | Module 5 Assignment: |
| | Pearson began 2012 with 30,000 $1 common shares issued and outstanding. Paid in capital in excess of par was $25,000 and retained earnings were $175,000. Net income for 2012 was $22,000. Pearson Wood Supplies completed the following transactions for 2012. |
| | Jan | 2 | Issued 10,000 shares $1 par common stock for $10 per share |
| | | 6 | Declared a cash dividend on 5,000 shares of 5% $4 par preferred stock and a $.20 per share dividend on 40,000 shares of common stock outstanding. |
| | | | The date of record is January 15 and the date of payment is Jauary 20. |
| | | 20 | Paid the cash dividend |
| | March | 15 | Declared a 2-for-1 stock split by calling in the 40,000 shares of $1 par common stock and issuing new stock in its place |
| | April | 10 | Declared and distributed a 10% stock dividend on the common stock when the market value was $12 per share |
| | June | 14 | Purchased 1,000 shares of common stock for the treasury for $13 per share |
| | Dec | 22 | Sold 500 treasury shares for $15 per share |
| | Requirements: |
| | 1 | Record the transactions in the journal. |
| | | Journal |
| | | Date | | Accounts | | | | | Post Ref. | Debit | | Credit |
| | 2 | Prepare the statement of shareholders' equity for 20XX. |
| | | Pearson Wood Supplies |
| | | Statement of Shareholders' Equity |
| | | For the year ended 2012 |
| | | | | | Preferred stock | | Common Stock | | Additional Paid in Capital | | Retained Earnings | | Treasury Stock | | Total |
kritin15
assignment_mod_5.xlsx
