The stockholders' equity accounts of Miley Corporation on January 1, 2014, were as follows.
| Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) |
|
$300,000 |
| Common Stock ($4 stated value, 300,000 shares authorized) |
|
1,000,000 |
| Paid-in Capital in Excess of Par Value-Preferred Stock |
|
15,000 |
| Paid-in Capital in Excess of Stated Value-Common Stock |
|
480,000 |
| Retained Earnings |
|
688,000 |
| Treasury Stock-(5,000 common shares) |
|
40,000 |
During 2014, the corporation had the following transactions and events pertaining to its stockholders' equity.
| Feb. 1 |
|
Issued 5,000 shares of common stock for $30,000. |
| Mar. 20 |
|
Purchased 1,000 additional shares of common treasury stock at $7 per share. |
| Oct. 1 |
|
Declared a 7% cash dividend on preferred stock, payable November 1. |
| Nov. 1 |
|
Paid the dividend declared on October 1. |
| Dec. 1 |
|
Declared a $0.50 per share cash dividend to common stockholders of record on December 15, payable December 31, 2014. |
| Dec. 31 |
|
Determined that net income for the year was $280,000. Paid the dividend declared on December 1.
How do you find the Dec 31 adjustment to close cash dividends?
|