Question - On December 31, 2015, Raleigh Corp. had the following balances (all balances are normal):
Accounts Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding) $1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding) $1,000,000
Paid-in Capital in Excess of par, Common 150,000
Retained Earnings 700,000
The following events occurred during 2015 and were not recorded:
1. On January 1, Raleigh Corp. 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.
2. On February 15, Raleigh Corp. reacquired 1,000 shares of common stock for $20 each.
3. On March 31, Raleigh Corp. reissued 250 shares of treasury stock for $25 each.
4. On July 1, Raleigh Corp. reissued 500 shares of treasury stock for $16 each.
5. On October 1, Raleigh Corp. declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
6. On December 15, Raleigh Corp. split common stock 2 shares for 1.
7. Net Income for 2015 was $275,000.
Requirements:
1. Prepare journal entries for the transactions listed above.
2. Prepare a Stockholders' section of a classified balance sheet as of December 31, 2015.