[Solution]ACCT 221 On December 31, 2014, Rayco Inc. had the following balances

On December 31, 2014, Rayco Inc. had the following balances (all balances are normal):AccountsAmountPreferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares…

On December 31, 2014, Rayco Inc. had the following balances (all balances are normal):AccountsAmountPreferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)$1,000,000Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)$1,000,000The following events occurred during 2014 and were not recorded:On January 1, Rayco declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share.Stock dividends were distributed on January 31 to shareholders as of January 25.On February 15, Rayco reacquired 1,000 shares of common stock for $20 each.On March 31, Rayco reissued 250 shares of treasury stock for $25 each.On July 1, Rayco reissued 500 shares of treasury stock for $16 each.On October 1, Rayco declared full year dividends for preferred stock (see outstanding shares in table above).Then, paid preferred shareholders on October 15On October 1, Rayco also declared $1.50 cash dividends for the 104,750 remaining common outstanding shares.Then, paid common shareholders on October 15.On December 15, Rayco split common stock 2 shares for 1.Requirements:Prepare journal entries for the transactions listed above.Prepare a Stockholders’ section of a classified balance sheet as of December 31, 2014 for the information given below:8% Preferred stock, $100 par value, 10,000 shares authorized, 5,000 shares issued and outstanding.Common stock, no par, $2 stated value, 500,000 shares authorized, 204,000 shares  issued and outstandingAdditional paid-in capital:Preferred stock in excess of par value is $34,000Common stock in excess of stated value is $437,000

The post ACCT 221 On December 31, 2014, Rayco Inc. had the following balances

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