|At 31 December 2017, Cooper Corporation’s stockholders’ equity consisted of the following:|
|Common stock, $20 par value, 350,000 shares authorized, 245,000 shares issued|
|Paid-In capital in excess of par value, Common Stock||2,450,000|
|Preferred stock, 2% cumulative, $25 par value, 70,000 shares authorized, 56,000 shares issued and outstanding|
|Paid-In capital in excess of par value, Preferred Stock||336,000|
|Treasury Stock, 55,000 shares at cost||-1,375,000|
|Total stockholders’ equity||$14,151,000|
During 2018, the company completed these transactions:
Jan 7 Paid cash dividends declared and recorded on Nov. 29, 2017; preferred stock percentage and $0.45 per share on common stock outstanding.
Mar 11 Sold all treasury stock for $34.50 per share.
Apr 6 Issued 70,000 shares of common stock for $33.50 per share.
July 31 The Board declared a 3% stock dividend on common stock, for stockholders of record on Aug. 15, distributable on Aug. 31. Market price was $37 a share.
Aug 31 Distributed the common stock dividend declared July 30.
Nov 13 Purchased 35,000 shares of treasury stock for $31 per share.
Dec 20 The Board declared cash dividends on preferred stock, and a $0.55 per share cash dividend to the January 15, 2019, stockholders of record, for common stock. The cash dividends are payable on January 30, 2019.
31 Closed the Income Summary account (it had a credit balance of $560,000).
- Calculate the number of shares of common stock outstanding throughout 2018.
- Prepare general journal entries (in good format) to record the transactions for the CURRENT year only.
- Prepare a Statement of Retained Earnings and the Stockholders’ Equity section of the company’s year-end balance sheet for the CURRENT year.