PRINCIPLE OF ACCOUNTING

Final Exam, Set B

注 意 事 项

(i) 本时段考试时长为 22 分钟，请自行预留填写、上传答案的时间。

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作答。请确保答案与题号相符。
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提交 IP 异常的，课程成绩以零分计，并上报学校。
(iv) 晚交、错交，以及在指定问卷星链接以外提交的答案作废。

Question 4

Xue Company reported the following summarized balance sheet at December 31, 2018:
Balance sheet accounts at December 31 2018
Assets
Current assets $33,400
Property and equipment, net 51,800
Total assets $85,200
Liabilities and Equity
Liabilities $37,800
Stockholders’ equity:
$0.50 cumulative preferred stock, $5 par,400 shares issued 2,000
Common stock, $1 par, 6,000 shares issued 6,000
Capital in excess of par value 17,400
Retained earnings 22,000
Total liabilities and stockholders’ equity $85,200

During 2019, Xue Company completed these transactions that affected stockholders’
equity:
Feb. 13 Issued 5,000 shares of common stock for $4 per share.
June 7 Declared the regular cash dividend on the preferred stock ($0.50 per
share).
24 Paid the cash dividend on the preferred stock.
Aug. 9 Distributed a 10% stock dividend on the common stock. Market price of
the common stock was $5 per share.
Oct. 26 Reacquired 500 shares of common stock as treasury stock, paying $6 per
share.
Nov. 20 Sold 200 shares of the treasury stock for $8 per share.
(a) Please journalize Xue company’s transactions above.
Journal
DATE DEBIT CREDIT
Feb. 13 Cash 20,000
Common Stock (2)
(1) (3)
June 7 (4) 200
(5) 200
24 (6) 200
(7) 200
Aug. 9 (8) (10)
Common Stock (11)
(9) (12)
Oct. 26 (13) (15)
(14) (15)
Nov. 20 Cash 1,600
Treasury Stock (17)
(16) (18)

(b) Report Xue company’s stockholders’ equity at December 31, 2019. Net income for
2019 was $27,000.

Stockholders’ equity:
Cumulative preferred stock $2,000
Common stock (19)
Capital in excess of par value 37,200
Retained earnings (20)
Less: Treasury stock (1,800)
Total stockholders’ equity…………………………….. $92,800