The stockholders’ equity accounts of Motz Inc., at January 1, 2012, are as follows.Preferred Stock, $100 par, 7%$600,000Common Stock, $10 par900,000Paid-in Capital in Excess of Par—Preferred Stock100,000Paid-in Capital in Excess of Par—Common Stock200,000Retained Earnings500,000There were no dividends in arrears on preferred stock. During 2012, the company had the following transactions and events.July1Declared a $0.50 cash dividend on common stock.Aug.1Discovered a $72,000 overstatement of 2011 depreciation on equipment. Ignore incometaxes.Sept.1Paid the cash dividend declared on July 1.Dec.1Declared a 10% stock dividend on common stock when the market value of the stockwas $16 per share.15Declared a 7% cash dividend on preferred stock payable January 31, 2013.31Determined that net income for the year was $350,000.Instructions(a) Journalize the transactions and the closing entry for net income.(b) Enter the beginning balances in the accounts and post to the stockholders’ equity accounts.(c) Prepare a retained earnings statement for the year.(d) Prepare a stockholders’ equity section at December 31, 2012.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more