P11-3A

GENERAL JOURNAL
Date Account Titles Debit Credit
Jan. 10 Cash 12.840.000
Preferred Stock 12.000.000
Paid-in Captital in Excess of Par value - Preferred Stock 840.000
(To record issuance of 120,000 shares of $100 par value
preferred stock)
Feb. 8 Treasury Stock 165.000
Cash 165.000
(To record purchase of 15,000 shares of treasury stock
at $11 per share)
May. 9 Cash Dividend (9% x 100$ x 120,000) 1.080.000
Dividends Payable 1.080.000
(To record declaration of cash dividend)
Jun. 8 Cash Dividend ($1.2 x 1,285,000) 1.542.000
Dividends Payable 1.542.000
(To record declaration of cash dividend)
Jun. 10 Dividends Payable 1.080.000
Cash 1.080.000
(To record payment of cash dividend)
Jul. 10 Dividends Payable 1.542.000
Cash 1.542.000
(To record payment of cash dividend)
Closing
Dec. 31 Income Summary 3.600.000
Retained Earnings 3.600.000
(To close net income to retained earnings)
Retained Earnings 2.622.000
Cash Dividends (1,542,000 + 1,080,000) 2.622.000
(To close dividends to retained earnings)
 Preferred Stock
Jan. 10 12.000.000
Dec. 31 Bal. 12,000,000

Paid-in Capital in Excess of Par value - Preferred Stock

Jan. 10 840.000
Dec. 31 Bal. 840,000

Retained Earnings
Dec. 31,2017 2.622.000 Dec. 31, 2016 1.200.000
Dec.31, 2017 3.600.000
Dec.31, 2017 Bal. 2,178,000
Stockholder's Equity
Paid-in Capital
Preferred Stock 12.000.000
Common Stock 6.500.000
Additional paid-in capital

Paid-in Capital in Excess of par value - Preferred Stock 840.000

Paid-in Capital in Excess of par value - Common Stock 1.800.000
Total paid-in capital 21.140.000

Retained Earnings 2.178.000

Total paid-in capital and retained earnings 23.318.000
Less: Treasury stock 165.000
Total stockholder's equity 23.153.000