University Of North Texas Operations And Supply Chain Management Assignment Help - The stockholders' equity

Question - The stockholders' equity accounts of Sigma Corporation on January 1, 2010, were as follows.


Preferred Stock (8%, $100 par noncumulative, 5,000 shares authorized) $300,000
Common Stock ($5 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 - Common (5,000 shares) 40,000

During 2010 the corporation had these 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 8% cash dividend on preferred ...Read More 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, 2010.
Dec. 31 Determined that net income for the year was $280,000. Paid the dividend declared on
December 1.

I have ?journalized my transaction and I don't understand how to close income summary and the
amount that debit and credit is incorrect: i got 500,5000 . Futhermore, the accounts and post the
journal entries to the stockholders' equity accounts I could not close or i should say are incorrect
(some at least). Lastly, my balance sheet is also a mess, can anyone help! Thank you. ...Read Less

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