The stockholders equity sec±on of the balance sheet of Frederick Mining Company is as fFrederick Mining CompanyEquity Sec±on of Balance Sheet as of January 1, 2016
| There are two problems this week covering the equity section of the balance sheet. | ||||||
| Click the tab at the bottom of the screen when you are ready for problem 2. | ||||||
| The stockholders equity section of the balance sheet of Frederick Mining Company is as follows: | ||||||
| Frederick Mining Company | ||||||
| Equity Section of Balance Sheet as of January 1, 2016 | ||||||
| Common stock, $10 par value, 200,000 shares authorized | ||||||
| 120,000 shares issued | 1,200,000 | |||||
| Paid-in capital in excess of par value | 3,711,250 | |||||
| Retained earnings | 4,651,255 | |||||
| Total equity | 9,562,505 | |||||
| Create a journal entry (if needed) for each of the following items. | ||||||
| Prepare an updated equity section of the balance sheet as of December 31, 2016. Scroll down past the journal entry section to see the heading for this. | ||||||
| 1/28/2016 | Frederick Mining enters into a loan-modification agreement with the bank, agreeing to appropriate $500,000 of retained earnings to loan repayment. | |||||
| 2/15/2016 | Frederick Mining board of directors declares a $1.50-per-share dividend payable on 3/31/2016 to shareholders of record as of 3/15/2016. Frederick uses a dividends account to record dividends declared. | |||||
| 3/31/2016 | Cash dividend declared on 2/15/2016 is paid. | |||||
| 7/22/2016 | Frederick Mining board of directors declares a 10% stock dividend to be paid 8/15/2016 to shareholders of record as of 8/1/2016. The market value of the stock is $49 immediately prior to the declaration. | |||||
| 8/15/2016 | Stock dividend declared on 7/22/16 is paid. | |||||
| 9/18/2016 | Frederick Mining buys back 5,000 shares of company stock on the open market for $52 per share. The purchased shares are not retired but are held in treasury. | |||||
| 12/31/2016 | Frederick Mining had the following income and expense account balance as of 12/31/2016. Close out income. | |||||
| Debit | Credit | |||||
| Sales revenue | 6,890,000 | |||||
| Cost of goods sold | 4,752,600 | |||||
| Administrative salary expense | 436,500 | |||||
| Office expense | 118,560 | |||||
| Depreciation expense | 12,000 | |||||
| Transportation expense | 18,400 | |||||
| Interest expense | 82,800 | |||||
| 12/31/2016 | Close out dividends. | |||||
| Journal Entries | Debit | Credit | ||||
| Frederick Mining Company | ||||||
| Equity Section of Balance Sheet as of December 31, 2016 | ||||||
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