E 15-15

a)
Retained Earnings

97,500

Common Stock Dividend Distributable

25,000

Paid-in Capital in Excess of Par

Common Stock

72,500

Common Stock Dividend Distributable

25,000

Common Stock

b)

25,000

No entry, memorandum note to indicate that par value is reduced to $2 and shares
outstanding are now 250,000.

c)
January 5, 2014
Debt Investments

35,000

Unrealized Holding Gain or LossIncome

35,000
Retained Earnings

135,000

Property Dividends Payable

135,000

January 25, 2014

Property Dividends Payable

135,000

Debt Investments

135,000

Total income since incorporation

$317,000

E 15-16

Less: Total cash dividends paid

Total value of stock dividends

$60,000
30,000

90,000

Current balance of retained earnings

$227,000
The unamortized discount on bonds payable is shown as a contra liability; the gains on treasury
stock are recorded as additional paid-in capital.

E 15-18
a)
1.

Dividends PayablePreferred

20,000

Dividends PayableCommon

40,000

Cash
2.

Treasury Stock

60,000
68,000

Cash
3.

Land

68,000
30,000

Treasury Stock

28,000

Paid-in Capital From Treasury Stock

4.

Cash (500 X $105)

2,000
52,500

Preferred Stock (500 X $100)

50,000

Paid-in Capital in Excess of Par

Preferred Stock
5.

Retained Earnings (1,900* X $45)

2,500
85,500

Common Stock Dividend Distributable

9,500

Paid-in Capital in Excess of Par Common Stock

6.

Common Stock Dividend Distributable

76,000
9,500

Common Stock
7.

Retained Earnings

9,500
66,800

Dividends PayablePreferred

25,000

Dividends PayableCommon

41,800

b)
ANNE CLEVES COMPANY
Stockholders Equity
December 31, 2014
Preferred stock $200,000 + $50,000 = $250,000
Common stock $100,000 + $ 9,500 = $109,500
Additional paid-in capital: $125,000 + $2,000 + $2,500 + $76,000 = $205,500
Retained earnings: $450,000 $85,500 $66,800 + $330,000 = $627,700
Treasury stock $68,000 $28,000 = $40,000
Capital stock
Preferred stock, 10%, $100 par, 10,000 shares
authorized, 2,500 shares issued and
outstanding
Common stock, $5 par, 100,000 shares
authorized, 21,900 shares issued, 20,900
shares outstanding
Total capital stock
Additional paid-in capital
Total paid-in capital
Retained earnings
Total paid-in capital and retained earnings
Less: Cost of treasury stock (1,000 shares common)
Total stockholders equity

$250,000

109,500
359,500
205,500
565,000
627,700
1,192,700
40,000
$1,152,700