Question

Alexander Corporation reports the following components of stockholders’ equity on December 31, 2016:

Common stock—$25 par value, 60,000 shares authorized,
36,000 shares issued and outstanding $ 900,000
Paid-in capital in excess of par value, common stock 72,000
Retained earnings 361,000
Total stockholders’ equity $ 1,333,000

In year 2017, the following transactions affected its stockholders’ equity accounts.

Jan. 2 Purchased 3,600 shares of its own stock at $25 cash per share.
Jan. 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record.
Feb. 28 Paid the dividend declared on January 7.
July 9 Sold 1,440 of its treasury shares at $30 cash per share.
Aug. 27 Sold 1,800 of its treasury shares at $20 cash per share.
Sept. 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.
Oct. 22 Paid the dividend declared on September 9.
Dec. 31 Closed the $58,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required:
1. Prepare journal entries to record each of these transactions for 2017.
2. Prepare a statement of retained earnings for the year ended December 31, 2017.
3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2017.

Complete this question by entering your answers in the tabs below.

Required 1
Required 2
Required 3

Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2017. (Amounts to be deducted should be indicated by a minus sign.)

ALEXANDER CORPORATION
Stockholders’ Equity Section of the Balance Sheet
December 31, 2017
Common stock - $25 par valueselected answer correct $900,000selected answer correct
Paid-in capital in excess of par value, common stockselected answer correct 72,000selected answer correct
Retained earningsselected answer correct 361,000selected answer incorrect
Less cost of treasury stockselected answer correct not attempted

please correct the answer that incorrect for me please.
Total stockholders’ equity $1,333,000

Answer 1

1	Date	Account Title	Debit	Credit
	2-Jan	Treasury Stock	90000
		To Cash		90000
		(3600*25)
	7-Jan	Retained Earnings	48600
		To Common Dividend Payable		48600
		(36000-3600)*1.50
	28-Feb	Common Dividend Payable	48600
		To Cash		48600
	9-Jul	Cash (1440*30)	43200
		To treasury Stock (1440*25)		36000
		To Paid in capital treasury stock (1440*5)		7200
	27-Aug	Cash (1800*20)	36000
		Paid in capital treasury stock (1800*5)	7200
		Retained Earnings	1800
		To treasury Stock (1800*25)		45000
	9-Sep	Retained Earnings	71280
		To Common Stock Dividend Payable		71280
		(36000-3600+1440+1800)*2
	22-Oct	Common Stock Dividend Payable	71280
		To Cash		71280
	31-Dec	Income Summary	$58,000
		To Retained Earnings		$58,000
2		Alexander Corporation
		Statement of Retained Earnings
		As on December 31, 2016
		Retained Earnings, December 31 2015		$361,000
		Add : Net Income		$58,000
		Less : Cash Dividend Declared		119880
		Less : Treasury Stock reissuance		1800
		Retained Earnings, December 31 2016		$297,320
3		Alexander Corporation
		Stockholders Equity Section
		As on December 31, 2016
		Common Stock, $ 25 par value, 60000 shares authorised,36000 shares issued		$900,000
		35640 shares outstanding
		Paid in capital in excess of Par Value, common stock		$72,000
		Retained Earnings		$297,320
		Less : Treasury stock (360*25)		-9000
		Total Stockholders Equity		$1,260,320