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PROBLEM 21.4A (continued)
ACCOUNT 10% Preferred Stock, $10 Par ACCOUNT NO.
ACCOUNT Paid-in Capital in Excess of Par Value—Preferred ACCOUNT NO.
2013
ACCOUNT Common Stock, No-Par, Stated Value, $50 ACCOUNT NO.
2013
ACCOUNT Paid-in Capital in Excess of Stated Value—Common ACCOUNT NO.
2013
Jan. 1 Balance ✔400000
315
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
311
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
305
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
GENERAL LEDGER
301
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
PROBLEM 21.4A (continued)
ACCOUNT Donated Capital ACCOUNT NO.
2013
ACCOUNT Treasury Stock—Preferred ACCOUNT NO.
2013
ACCOUNT Retained Earnings ACCOUNT NO.
2013
Jan. 1 Balance ✔130 0 0 0 00
Feb. 15 J1 44 0 0 0 00 86 0 0 0 00
ACCOUNT Retained Earnings Appropriated for Treasury Stock ACCOUNT NO.
2013
Feb. 15 J1 44 0 0 0 00 44 0 0 0 00
371
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
372
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
381
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
382
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
PROBLEM 21.4A (continued)
Stockholders’ Equity
Paid-in Capital
Preferred Stock (10% cumulative, $10 par value, 200,000 shares authorized)
Issued 8,000 shares (of which 4,500 shares are held as treasury stock) 8000000
Paid-in Capital in Excess of Par Value—Preferred 800000 8800000
Common Stock (no-par, $25 stated value, 200,000 shares authorized)
53425000
Deduct Treasury Stock—Preferred 4,500 shares 4900000
Total Stockholders’ Equity 48525000
Willy Corporation
Balance Sheet (Partial)
December 31, 2013
PROBLEM 21.1B
PAGE
POST.
REF.
1 2013 1
2 Mar. 15 Income Tax Payable 400000 2
11 May 30 Retained Earnings 500000 11
12 Dividends Payable—Common 5 0 0 0 00 12
13 Declared dividend of $0.10 per share on 13
14 50,000 shares, payable June 30 to holders 14
15 of record June 15 15
16 16
27 Quarterly income tax deposit 27
28 28
29 Oct. 30 Retained Earnings 500000 29
30 Dividends Payable—Common 500000 30
31 Declared dividend of $0.10 per share on 31
GENERAL JOURNAL
DATE DESCRIPTION DEBIT CREDIT
PROBLEM 21.1B (continued)
PAGE
POST.
REF.
1 2013 1
2 Dec. 15 Income Tax Expense 45 0 0 0 00 2
3 Cash 45 0 0 0 00 3
GENERAL JOURNAL
DATE DESCRIPTION DEBIT CREDIT
PROBLEM 21.2B
1 Cash 40 0 0 0 00
2 Accounts Receivable 52 8 0 0 00
8 Equipment 78 0 0 0 00
9 Accumulated Depreciation—Equipment 12 0 0 0 00 (d) 6 0 0 0 00
10 Accounts Payable 31 4 5 0 00
11 Dividends Payable—Preferred 240000
12 Accrued Expenses Payable (e) 3 8 0 0 00
13 Income Tax Payable (f) 2 4 0 1 00
24 General Expenses Control 40 0 0 0 00 (c) 4 0 0 00
25 (d) 4 0 0 0 00
26 (e) 2 6 0 0 00
27 Income Tax Expense 16 0 0 0 00 (f) 2 4 0 1 00
30 Net Income After Taxes
31
32
33
DEBIT CREDIT
Pacific Corporation
Worksheet
Year Ended December 31, 2013
ACCOUNT NAME
TRIAL BALANCE ADJUSTMENTS
DEBIT CREDIT
PROBLEM 21.2B (continued)
4000000 1
5280000 2
240100 13
8000000 14
600000 15
8000000 16
8917000 17
7492000 7800000 28
45272100 52300000 39680000 32652100 29
7027900 7027900 30
52300000 52300000 39680000 39680000 31
32
INCOME STATEMENT BALANCE SHEET
DEBIT CREDIT DEBIT CREDIT
PROBLEM 21.2B (continued)
Sales (Net) 445 0 0 0 00
Cost of Goods Sold:
Expenses
Selling Expenses 92 4 0 0 00
General Expenses 47 0 0 0 00
Total Expenses 139 4 0 0 00
Pacific Corporation
Income Statement
Year Ended December 31, 2013
PROBLEM 21.2B (continued)
Equipment 78 0 0 0 00
Less Accumulated Depreciation—Equipment 18 0 0 0 00 60 0 0 0 00
Total Property, Plant, and Equipment 196 0 0 0 00
Total Assets 365 5 0 0 00
Issued and Outstanding, 800 shares 80 0 0 0 00
Paid-in Capital in Excess of Par Value 600000 8600000
Common Stock (no-par, stated value $100,
10,000 shares authorized)
Issued and Outstanding, 800 shares 80 0 0 0 00
Pacific Corporation
Balance Sheet
December 31, 2013
Assets
Liabilities and Stockholders’ Equity
PROBLEM 21.2B (continued)
Retained Earnings
Balance, January 1, 2013 97 1 7 0 00
Add Net Income for Year 70 2 7 9 00
Balance Sheet (continued)
December 31, 2013
Pacific Corporation
PROBLEM 21.2B (continued)
PAGE
POST.
REF.
1 1
2 2013 (a) 2
3 Dec. 31 Income Summary 74 9 2 0 00 3
12 12
13 (c) 13
14 31 Selling Expenses Control 3 6 0 0 00 14
15 General Expenses Control 4 0 0 00 15
16 Accumulated Depreciation—Buildings 4000 00 16
27 27
28 (f) 28
29 31 Income Tax Expense 240100 29
30 Income Tax Payable 240100 30
31 31
Adjusting Entries
GENERAL JOURNAL 6
DATE DESCRIPTION DEBIT CREDIT
PROBLEM 21.2B (continued)
PAGE
POST.
REF.
1 1
2 2013 2
3 Dec. 31 Sales (Net) 445 0 0 0 00 3
11 11
12 31 Income Summary 70 2 7 9 00 12
13 Retained Earnings 70 2 7 9 00 13
14 14
15 15
Analyze: 9.0% ($8,000 / $88,680 = 0.0902) was spent on dividends to stockholders.
Closing Entries
GENERAL JOURNAL 7
DATE DESCRIPTION DEBIT CREDIT
