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at september 30 the end of excel company s third quarter the following stockholders 648049

At September 30, the end of Excel Company’s third quarter, the following stockholders’ equity accounts are reported.

Common stock, $12 par value

$720,000

Paid in capital in excess of par value, common stock

180,000

Retained earnings

640,000

In the fourth quarter, the following entries related to its equity are recorded.

Oct. 2

Retained Earnings

120,000

 

 

Common Dividend Payable

 

120,000

Oct. 25

Common Dividend Payable

120,000

 

 

Cash

 

120,000

Oct. 31

Retained Earnings

150,000

 

 

Common Stock Dividend Distributable

 

72,000

 

Paid In Capital in Excess of

 

 

 

Par Value, Common Stock

 

78,000

Nov. 5

Common Stock Dividend Distributable

72,000

 

 

Common Stock, $12 Par Value

 

72,000

Dec. 1

Memo—Change the title of the common stock

 

 

 

account to reflect the new par value of $4

 

 

Dec. 31

Income Summary

420,000

 

 

Retained Earnings

 

420,000

         

Required

1. Explain the transaction(s) underlying each journal entry.

2. Complete the following table showing the equity account balances at each indicated date (include the balances from September 30).

 

Oct. 2

Oct. 25

Oct. 31

Nov. 5

Dec. 1

Dec. 31

Common stock

$_____

$_____

$_____

$_____

$_____

$_____

Common stock dividend

 

 

 

 

 

 

distributable

_____

_____

_____

_____

_____

_____

Paid in capital in

 

 

 

 

 

 

excess of par, common stock

_____

_____

_____

_____

_____

_____

Retained earnings

_____

_____

_____

_____

_____

_____

Total equity

$_____

$_____

$_____

$_____

$_____

$_____

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