At September 30, the end of Beijing Company’s third quarter, the following stockholders’ equity accounts are reported.Common stock, $14 par value $ 360,000Paid-in capital in excess of par value, common stock 90,000Retained earnings 380,000In the fourth quarter, the following entries related to its equity are recorded.Date General Journal Debit CreditOctober 2 Retained Earnings 60,000 Common Dividend Payable 60,000October 25 Common Dividend Payable 60,000 Cash 60,000October 31 Retained Earnings 91,000 Common Stock Dividend Distributable 44,000 Paid-In Capital in Excess of Par Value, Common Stock 47,000November 5 Common Stock Dividend Distributable 44,000 Common Stock, $14 Par Value 44,000December 1 Memo—Change the title of the common stock account to reflect the new par value of $4. December 31 Income Summary 210,000 Retained Earnings 210,000Required:2. Complete the following table showing the equity account balances at each indicated date.
Question
At September 30, the end of Beijing Company’s third quarter, the following stockholders’ equity accounts are reported.Common stock, 360,000Paid-in capital in excess of par value, common stock 90,000Retained earnings 380,000In the fourth quarter, the following entries related to its equity are recorded.Date General Journal Debit CreditOctober 2 Retained Earnings 60,000 Common Dividend Payable 60,000October 25 Common Dividend Payable 60,000 Cash 60,000October 31 Retained Earnings 91,000 Common Stock Dividend Distributable 44,000 Paid-In Capital in Excess of Par Value, Common Stock 47,000November 5 Common Stock Dividend Distributable 44,000 Common Stock, 4. December 31 Income Summary 210,000 Retained Earnings 210,000Required:2. Complete the following table showing the equity account balances at each indicated date.
Solution
The table below shows the equity account balances at each indicated date:
| Date | Common Stock | Paid-in Capital in Excess of Par Value, Common Stock | Retained Earnings | Common Dividend Payable | Common Stock Dividend Distributable |
|---|---|---|---|---|---|
| Sept 30 | $360,000 | $90,000 | $380,000 | $0 | $0 |
| Oct 2 | $360,000 | $90,000 | 380,000 - $60,000) | $60,000 | $0 |
| Oct 25 | $360,000 | $90,000 | $320,000 | 60,000 - $60,000) | $0 |
| Oct 31 | $360,000 | 90,000 + $47,000) | 320,000 - $91,000) | $0 | $44,000 |
| Nov 5 | 360,000 + $44,000) | $137,000 | $229,000 | $0 | 44,000 - $44,000) |
| Dec 1 | $404,000 | $137,000 | $229,000 | $0 | $0 |
| Dec 31 | $404,000 | $137,000 | 229,000 + $210,000) | $0 | $0 |
Please note that the par value of the common stock changed on December 1, but this does not affect the total value of the common stock, only the par value per share.
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