Please show your work! The stockholders equity accounts of Welk Company have the following balances on January 1, 2014: Common Stock, $6 par $300,000 Additional Paid-in Capital in Excess

Please show your work!

The stockholders’ equity accounts of Welk Company have the following balances on January 1, 2014:

Common Stock, $6 par $300,000

Additional Paid-in Capital in Excess of Par – Common Stock $540,000

Retained Earnings $492,000

The company has no treasury stock. On March 1, 2014, Welk declared and paid a $1.25 per share cash dividend.

On July 1, 2014, the company declared and paid a 7% stock dividend when its stock was selling at $9.75 per share.

On November 1, 2014, Welk declared a 3:1 stock split. Net income for 2014 was $280,000.

Required: Provide the following amounts to be reported on Welk’s December 31, 2014, balance sheet.

Common Stock shares outstanding: _______________

Common Stock ($): ________________

Additional Paid-in Capital ($): ________________

Retained Earnings ($): ________________

The stockholders’ equity section of Zelk Corp showed the following:

Preferred Stock, 6%, $100 par, 5,000 shares outstanding $500,000

Common Stock, $10 par, 60,000 shares outstanding $600,000

Additional Paid-in Capital in Excess of Par $200,000

Retained Earnings $118,000

Zelk’s preferred stock is cumulative and participating. The company decides to distribute all of its retained earnings

and declares a cash dividend of $118,000. Preferred dividends are 1 year in arrears.

Required: Determine how much of the dividend will be paid to the preferred and common stockholders. 

Preferred Stockholders: _______________

Common Stockholders: ________________

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