The following journal entries are for Keel Corporation:
|
Retained earnings |
12,000 |
|
|
Reserve for uncollectible accounts |
12,000 |
|
|
To record the adjusting entry for uncollectible |
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accounts. |
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|
Retained earnings |
48,000 |
|
|
Reserve for depreciation |
48,000 |
|
|
To record depreciation expense. |
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|
Retained earnings |
120,000 |
|
|
Appropriation for plant expansion |
120,000 |
|
|
To record retained earnings appropriation. |
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|
Retained earnings |
8,000 |
|
|
Stock dividend distributable – Common |
8,000 |
|
|
To record 10% stock dividend declaration (100 |
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shares to be distributed – $80 par value, $120 |
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market value). |
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|
Stock dividend distributable – Common |
8,000 |
|
|
Common stock |
8,000 |
|
|
To record distribution of stock dividend. |
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|
Treasury Stock |
32,000 |
|
|
Cash |
32,000 |
|
|
To record acquisition of 200 shares of $80 par |
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value common stock at $160 per share. |
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|
Cash |
17,600 |
|
|
Treasury Stock |
17,600 |
|
|
To record sale of 100 treasury shares at $176 per |
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share. |
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|
Cash |
6,800 |
|
|
Treasury stock |
6,800 |
|
|
To record sale of 50 treasury shares at $136 per |
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share. |
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|
Common stock |
16,000 |
|
|
Dividends payable |
16,000 |
|
|
To record declaration of cash dividend. |
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|
Dividends payable |
16,000 |
|
|
Cash |
16,000 |
|
|
To record payment of cash dividend. |
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The management of Keel Corporation has asked you, a CPA, to analyze these journal entries and decide whether each is correct. The explanations are all correct. Wherever a journal entry is incorrect, prepare the journal entry that should have been made.