| 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 | |||||
| REQUIRED: | ||||||
| 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. | |||||