Problem 11-2A (Part Level Submission)
The stockholders’ equity accounts of Cheyenne Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 4,400 shares authorized) $264,000 Common Stock ($4 stated value, 310,000 shares authorized) 1,033,333 Paid-in Capital in Excess of Par Value—Preferred Stock 13,200 Paid-in Capital in Excess of Stated Value—Common Stock 496,000 Retained Earnings 683,500 Treasury Stock (4,400 common shares) 35,200
During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 4,620 shares of common stock for $32,340. Mar. 20 Purchased 1,250 additional shares of common treasury stock at $8 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.85 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 $278,200. Paid the dividend declared on December 1.
1, Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.) (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
2. Enter the beginning balances in the accounts and post the journal entries to the stockholders’ equity accounts. (Post entries in the order of journal entries posted in the previous part. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.)