Comprehensive Acc Prob


This is a comprehensive problem all contained on this spreadsheet tab.             
  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        
  1.  Create a journal entry (if needed) for each of the following items.            
  2.  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.      
28/01/2016 Frederick Mining enters into a loan-modification agreement with the bank, agreeing to appropriate $550,000 of retained earnings to loan repayment.      
15/02/2016 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.      
31/03/2016 Cash dividend declared on 2/15/2016 is paid.          
22/07/2016 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 $59 immediately prior to the declaration.      
15/08/2016 Stock dividend declared on 7/22/16 is paid.          
18/09/2016 Frederick Mining buys back 6,000 shares of company stock on the open market for $52 per share. The purchased shares are not retired but are held in treasury.      
31/12/2016 Frederick Mining had the following income and expense account balance as of 12/31/2016. Close out income.      
Scroll to Top