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Question: part arecord the following 2018 transctions for the sears corporation...

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PART A-Record the following 2018 transctions for the Sears Corporation in the journal. Additional information you will need: when Sears began operations several years ago, they were authorized to issue 200,000 shares of 7%, $100 par value preferred stock and 6,000,000 shares of $4 par value common stock.

Jan.

1

Issued 500,000 shares of common stock for cash at $11 per share.

Feb.

2

Issued 30,000 shares of preferred stock for cash at $105 per share.

Mar.

3

Declared a cash dividend on the preferred stock $385,000.  

Apr.

4

Discovered a $13,000 overstatement of 2015 depreciation.

May

5

Paid the cash dividend declared of March 3.

June

6

Issued 4,000 shares of common stock for land that was advertised for sale at $51,000. The stock market price of the stock is $15 per share.

Sept.

9

Sears purchased 8,000 shares of its own common stock at $14 per share.

Oct.

10

Sold 3,000 shares of treasury stock for $18 per share

Nov.

11

Declared a $0.60 cash dividend per share on common stock for a total of $896,400.

Dec.

31

Record the net income for the year, $950,000.

PART B. Based on the Sears Corp.partial trial balance below, prepare (a) a retained earnings statement for the year and (b) a stockholder’s equity section at December 31, 2018. You may need information from A to complete this section.

        Sears Corporation

Adjusted Trial Balance-partial

December 31, 2018

                                                                                                                                                                      

Debit

Credit

         

          Preferred Stock.......................................................................

          Common Stock........................................................................

          Paid-in-capital in excess of par value-Preferred......................

          Paid-in-capital in excess of par value-Common......................

          Retained Earnings...................................................................

          Cash Dividends-Preferred Stock............................................

          Cash Dividends-Common Stock.............................................

          Treasury Stock (5,000 shares).................................................

          Paid-in-capital from Treasury Stock........................................

         

  • *The beginning Retained Earnings balance is $3,750,000,

then adjusted for the prior period adjustment

         

    

   385,000

   896,400

     70,000

  

  5,500,000

  5,976,000

   180,000

4,952,000

3,763,000*

12,000

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