Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Chapter 16, Problem 3P
On January 1, 2019, Kittson Company had a
- 1. Cash dividends of $3 per share on 4,000 shares of common stock were declared and paid.
- 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of $10 par common stock. On the date of declaration, the market price of the company’s common stock was $36 per share.
- 3. The company recalled and retired 500 shares of $100 par
preferred stock . The call price was $125 per share; the stock had originally been issued for $110 per share. - 4. The company discovered that it had erroneously recorded
depreciation expense of $45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been $20,000. This is considered a material error.Required:
1. Prepare
journal entries to record Items 1 through 4.2. Prepare Kittson’s statement of retained earnings for the year ended December 31, 2019.
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Chapter 16 Solutions
Intermediate Accounting: Reporting And Analysis
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