Direction. Read and understand the case and answer the requirements.On December 31, 2020, Shipyard, Inc. reported the following stockholders' equity account:Common Stock, $10 par valuePaid-in Capital in excess of par value, common stockRetained Earnings+In 2021, the following entries related to its equity are recorded.DateAccountsJan.FebFebMarDec17 Retained Earnings202152814Common Dividend PayableCommon Dividend PayableCashRetained EarningsCommon Stock Dividend DistributablePaid-in Capital in Excess of Par Value, Common StockCommon Stock Dividend DistributableCommon Stock, $10 Par Value31 Income SummaryRetained EarningsThe table shows the equity balances as of December 31, 2021.Paid-incapital inexcess of parBeginning BalanceDividend declarationStock Dividend DeclarationStock Dividend DistributionNet IncomeCommonStock1,000,000130,0001,130,000300,000Common stockdividenddistributable300,000120,000120,000Debit100,000100,000250,000120,000500,0000$1,000,000300.000700,000Credit100,000100,000120,000130,000120,000Treasury RetainedSharesEarnings500.000Ending BalanceRequirement.(a) Assuming that the 2021 journal entries pertaining to equity accounts are correct, evaluate the table showingthe equity accounts of Shipyard, Inc. as December 31, 2021, whether the equity accounts' balances areappropriate or not. If not, make the prepare the correct Stockholders' equity account balances.Total700,000 2,000,000100,000100,000120,000130,00050,0002,400,00050,000850,000

The cumulative profit that remains with the firm after the dividend payment is made is referred to…

Direction. Read and understand the case and answer the requirements. On December 31, 2020, Shipyard, Inc. reported the following stockholders' equity account: Common Stock, $10 par value Paid-in Capital in excess of par value, common stock Retained Earnings In 2021, the following entries related to its equity are recorded. Date Accounts Jan. Feb Feb 17 Retained Earnings Common Dividend Payable 5 Common Dividend Payable Cash 28 Retained Earnings Common Stock Dividend Distributable Paid-in Capital in Excess of Par Value, Common Stock Debit 100,000 100,000 250,000 $1,000,000 300,000 700,000 Credit 100,000 100,000 120,000 130,000

Direction. Read and understand the case and answer the requirements. On December 31, 2020, Shipyard, Inc. reported the following stockholders' equity account: Common Stock, $10 par value Paid-in Capital in excess of par value, common stock Retained Earnings In 2021, the following entries related to its equity are recorded. Date Accounts Jan. Feb Feb 17 Retained Earnings Common Dividend Payable 5 Common Dividend Payable Cash 28 Retained Earnings Common Stock Dividend Distributable Paid-in Capital in Excess of Par Value, Common Stock Debit 100,000 100,000 250,000 $1,000,000 300,000 700,000 Credit 100,000 100,000 120,000 130,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 19E: Lyon Company shows the following condensed income statement information for the year ended December...

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