| This is a comprehensive problem all contained on this spreadsheet tab. |
| | The stockholders equity section of the balance sheet of Frederick Mining Company is as follows: |
| | Frederick Mining Company |
| | Equity Section of Balance Sheet as of January 1, 2016 |
| | Common stock, $10 par value, 200,000 shares authorized |
| | 120,000 shares issued | 1,200,000 |
| | Paid-in capital in excess of par value | 3,711,250 |
| | Retained earnings | 4,651,255 |
| | Total equity | 9,562,505 |
| | Create a journal entry (if needed) for each of the following items. |
| | Prepare an updated equity section of the balance sheet as of December 31, 2016. Scroll down past the journal entry section to see the heading for this. |
| 1/28/16 | Frederick Mining enters into a loan-modification agreement with the bank, agreeing to appropriate $550,000 of retained earnings to loan repayment. |
| 2/15/16 | Frederick Mining board of directors declares a $1.50-per-share dividend payable on 3/31/2016 to shareholders of record as of 3/15/2016. Frederick uses a dividends account to record dividends declared. |
| 3/31/16 | Cash dividend declared on 2/15/2016 is paid. |
| 7/22/16 | Frederick Mining board of directors declares a 10% stock dividend to be paid 8/15/2016 to shareholders of record as of 8/1/2016. The market value of the stock is $59 immediately prior to the declaration. |
| 8/15/16 | Stock dividend declared on 7/22/16 is paid. |
| 9/18/16 | Frederick Mining buys back 6,000 shares of company stock on the open market for $52 per share. The purchased shares are not retired but are held in treasury. |
| 12/31/16 | Frederick Mining had the following income and expense account balance as of 12/31/2016. Close out income. |
| | | Debit | Credit |
| | Sales revenue | | 6,890,000 |
| | Cost of goods sold | 4,752,600 |
| | Administrative salary expense | 436,500 |
| | Office expense | 118,560 |
| | Depreciation expense | 12,000 |
| | Transportation expense | 18,400 |
| | Interest expense | 82,800 |
| 12/31/16 | Close out dividends. |
| | Journal Entries | Debit | Credit |
| | Frederick Mining Company |
| | Equity Section of Balance Sheet as of December 31, 2016 |
Ernesto Sabato
week_1_homework_problems_1.xlsx
