Sandhill Company reported the following amounts in the stockholders’ equity section of its December 31, 2019, balance sheet. Preferred stock, 10%, $ 100 par (10,000 shares authorized, 2,100 shares issued) $ 210,000 Common stock, $ 5 par ( 92,500 shares authorized, 18,500 shares issued) 92,500 Additional paid-in capital 132,000 Retained earnings 434,000 Total $ 868,500 During 2020, Sandhill took part in the following transactions concerning stockholders’ equity. 1. Paid the annual 2019 $ 10 per share dividend on preferred stock and a $ 2 per share dividend on common stock. These dividends had been declared on December 31, 2019. 2. Purchased 1,800 shares of its own outstanding common stock for $ 40 per share. Sandhill uses the cost method. 3. Reissued 600 treasury shares for land valued at $ 30,200. 4. Issued 530 shares of preferred stock at $ 106 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $ 47 per share. 6. Issued the stock dividend. 7. Declared the annual 2020 $ 10 per share dividend on preferred stock and the $ 2 per share dividend on common stock. These dividends are payable in 2021. Prepare journal entries to record the transactions described above. (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.) Prepare the December 31, 2020, stockholders’ equity section. Assume 2020 net income was $ 321,000. (Enter account name only .Do not provide any descriptive information.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Sandhill Company reported the following amounts in the stockholders’ equity section of its December 31, 2019, balance sheet.

Preferred stock, 10%, $ 100 par (10,000 shares authorized, 2,100 shares issued)		$ 210,000
Common stock, $ 5 par ( 92,500 shares authorized, 18,500 shares issued)		92,500
Additional paid-in capital		132,000
Retained earnings		434,000
Total		$ 868,500

During 2020, Sandhill took part in the following transactions concerning stockholders’ equity.

1.		Paid the annual 2019 $ 10 per share dividend on preferred stock and a $ 2 per share dividend on common stock. These dividends had been declared on December 31, 2019.
2.		Purchased 1,800 shares of its own outstanding common stock for $ 40 per share. Sandhill uses the cost method.
3.		Reissued 600 treasury shares for land valued at $ 30,200.
4.		Issued 530 shares of preferred stock at $ 106 per share.
5.		Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $ 47 per share.
6.		Issued the stock dividend.
7.		Declared the annual 2020 $ 10 per share dividend on preferred stock and the $ 2 per share dividend on common stock. These dividends are payable in 2021.

Prepare journal entries to record the transactions described above. (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.)

Prepare the December 31, 2020, stockholders’ equity section. Assume 2020 net income was $ 321,000. (Enter account name only .Do not provide any descriptive information.)

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