1-Jul Retained earnings $ 80,000 Preferred Stock

Divident Payable $ 80,000 1-Jan

1-Aug Retained earnings $ 25,000
Accumulated Depreciation $ 25,000 Common Stock Dividends Distributable
1-Sep Dividends Payable $ 80,000 1-Dec
Cash $ 80,000
1-Dec Retained earnings $ 288,000 Common Stock
Common stock dividends distributable $ 80,000 1-Jan
Paid-in capital in excess of par value-common stock $ 208,000
15-Dec Retained earnings $ 36,000 Paid-in Capital in Excess of PV-PS
Dividends payable $ 36,000 1-Jan
31-Dec Income summary $ 355,000
Retained earnings $ 355,000 Paid-in Capital in Excess of PV-CS
31-Dec No entry 1-Jan
1-Dec
$ 508,000

Retained earnings
1-Jul $ 80,000 1-Jan
1-Aug $ 25,000 31-Dec
1-Dec $ 288,000
15-Dec $ 36,000
$ 429,000 $ 1,155,000
$ 726,000
 red Stock Hashmi Company
$ 600,000 Retained Earnings Statement
December, 31st 2010
vidends Distributable
$ 80,000 Balance, January 1st, as reported $ 800,000
Correction for overstatement of net income
mon Stock in prior period (depreciation error) $ (25,000)
$ 800,000 Balance, january 1st, as adjusted $ 775,000
Net Income $ 355,000
in Excess of PV-PS $ 1,130,000
$ 200,000 Cash dividends $ 116,000
Stock dividends $ 288,000 $ (404,000)
in Excess of PV-CS Balance, December 31st $ 726,000
$ 300,000
$ 208,000
$ 508,000

ed earnings
$ 800,000
$ 355,000

$ 1,155,000
$ 726,000
 Hashmi Company
Balance Sheet (partial)
December, 31st 2010

Stockholders' equity
Paid-in capital
Capital stock
6% Preferred stock, $50 par value,
12,000 shares issued and outstanding $ 600,000
Common stock, $5 par value,
160,000 shares issued and outstanding $ 800,000
Common stock dividens distributable $ 80,000
Total capital stock $ 1,480,000
Additional paid-in capital
In excess of par value-preferred stock $ 200,000
in excess of par value-common stock $ 508,000
Total additional paid-in capital $ 708,000
Total paid-in capital $ 2,188,000
Retained earnings $ 726,000
Total stocholders'equity $ 2,914,000
1-Feb Retained earnings $ 90,000 Common Stock
Dividends payable $ 90,000
1-Mar Dividends payable $ 90,000
Cash $ 90,000
1-Apr No entry
Common Stock Dividends D
1-Jul Retained earnings $ 234,000 31-Jul
Common stock dividends distributable $ 234,000
31-Jul Common stock dividends distributable $ 234,000 Retained Earnin
Common stock $ 234,000 1-Feb
1-Dec Retained earnings $ 189,000 1-Jul
Dividens payable $ 189,000 1-Dec
31-Dec Income summary $ 350,000 $ 513,000
Retained earnings $ 350,000
 Common Stock Pattini Corporation
1-Jan $ 1,400,000 Balance Sheet (partial)
31-Jul $ 234,000 March, 31st 2010
$ 1,634,000
Stockholders' Equity
Common Stock Dividends Distributable Paid-in Capital
$ 234,000 1-Jul $ 234,000 Capital Stock
Common stock, no par value
Retained Earnings 360000 shares issued and outstanding $ 1,400,000
$ 90,000 1-Jan $ 500,000 Retained earnings $ 410,000
$ 234,000 31-Dec $ 350,000 Total stockholders' equity $ 1,810,000
$ 189,000
$ 513,000 $ 850,000 Pattini Corporation
$ 337,000 Balance Sheet (partial)
June, 30th 2010

Stockholders' Equity
Paid-in Capital
Capital Stock
Common stock, no par value
360000 shares issued and outstanding $ 1,400,000
Retained earnings $ 410,000
Total stockholders' equity $ 1,810,000

Pattini Corporation
Balance Sheet (partial)
September, 30th 2010

Stockholders' Equity
Paid-in Capital
Capital Stock
Common stock, no par value
360000 shares issued and outstanding $ 1,634,000
Retained earnings $ 176,000
Total stockholders' equity $ 1,810,000

Pattini Corporation
Balance Sheet (partial)
December, 31st 2010

Stockholders' Equity
Paid-in Capital
Capital Stock
Common stock, no par value
360000 shares issued and outstanding $ 1,634,000
Retained earnings $ 337,000
Total stockholders' equity $ 1,971,000