The following stockholders’ equity accounts, are in the ledger of Ehrlich Corporation at January 1, 2021. Common Stock ($8 par value) $2,600,000 Paid-in Capital in Excess of Par—Preferred Stock 270,000 Paid-in Capital in Excess of Par Value—Common Stock 750,000 Preferred Stock (8%, $200 par) 900,000 Retained Earnings 2,340,000 Instructions Prepare the journal entry to close net income for the year to retained earnings. Net income was $400,000. Answer the following questions: How many shares of common stock are issued? ________________ 4. How many shares of preferred stock are issued?________________ 5. What is the preferred dividend per share?______________________ 6. Prepare the stockholders’ equity section of the balance sheet (in the proper order) at December 31, 2021. EHRLICH CORPORATION Partial Balance Sheet December 31, 202
The following
Common Stock ($8 par value) $2,600,000
Paid-in Capital in Excess of Par—
Paid-in Capital in Excess of Par Value—Common Stock 750,000
Preferred Stock (8%, $200 par) 900,000
Retained Earnings 2,340,000
Instructions
- Prepare the
journal entry to close net income for the year to retained earnings. Net income was $400,000. - Answer the following questions:
- How many shares of common stock are issued? ________________
4. How many shares of preferred stock are issued?________________
5. What is the preferred dividend per share?______________________
6. Prepare the stockholders’ equity section of the balance sheet (in the proper order) at December 31, 2021.
EHRLICH CORPORATION
Partial Balance Sheet
December 31, 202
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
