At September 30, the end of Beijing Company’s third quarter, the following stockholders’ equity accounts are reported. Common stock, $14 par value $ 360,000 Paid-in capital in excess of par value, common stock 100,000 Retained earnings 320,000 In the fourth quarter, the following entries related to its equity are recorded. Date General Journal Debit Credit Oct. 2 Retained Earnings 60,000 Common Dividend Payable 60,000 Oct. 25 Common Dividend Payable 60,000 Cash 60,000 Oct. 31 Retained Earnings 91,000 Common Stock Dividend Distributable 44,000 Paid-In Capital in Excess of Par Value, Common Stock 47,000 Nov. 5 Common Stock Dividend Distributable 44,000 Common Stock, $14 Par Value 44,000 Dec. 1 Memo—Change the title of the common stock account to reflect the new par value of $4. Dec. 31 Income Summary 210,000 Retained Earnings 210,000 Required: 2. Complete the following table showing the equity account balances at each indicated date. Sep. 30 Beg. Bal. Oct. 2 Oct. 25 Oct. 31 Nov. 5 Dec. 1 Dec.31 Common stock $360,000 Common stock dividend distributable Paid-in capital in excess of par, common stock $100,000 Retained earnings $320,000 Total equity $780,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 21E

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At September 30, the end of Beijing Company’s third quarter, the following stockholders’ equity accounts are reported.


Common stock, $14 par value	$	360,000
Paid-in capital in excess of par value, common stock		100,000
Retained earnings		320,000

In the fourth quarter, the following entries related to its equity are recorded.

Date	General Journal	Debit	Credit
Oct. 2	Retained Earnings	60,000
	Common Dividend Payable		60,000

Oct. 25	Common Dividend Payable	60,000
	Cash		60,000

Oct. 31	Retained Earnings	91,000
	Common Stock Dividend Distributable		44,000
	Paid-In Capital in Excess of Par Value, Common Stock		47,000

Nov. 5	Common Stock Dividend Distributable	44,000
	Common Stock, $14 Par Value		44,000

Dec. 1	Memo—Change the title of the common stock
	account to reflect the new par value of $4.

Dec. 31	Income Summary	210,000
	Retained Earnings		210,000

Required:
2. Complete the following table showing the equity account balances at each indicated date.

	Sep. 30 Beg. Bal.	Oct. 2	Oct. 25	Oct. 31	Nov. 5	Dec. 1	Dec.31
Common stock	$360,000
Common stock dividend distributable
Paid-in capital in excess of par, common stock	$100,000
Retained earnings	$320,000
Total equity	$780,000

Expert Solution

Step 1

	Sep. 30 Beg. Bal.	Oct. 2	Oct. 25	Oct. 31	Nov. 5	Dec. 1	Dec.31
Common stock	$360,000				44,000
Common stock dividend distributable				44,000	-44,000
Paid-in capital in excess of par, common stock	$100,000			47,000
Retained earnings	$320,000	-60,000		-91,000			210,000
Total equity	$780,000

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