Question

In: Accounting

Washington Company has the following stockholders' equity accounts at December 31st, 2014. Common Stock ($100 par...

Washington Company has the following stockholders' equity accounts at December 31st, 2014.

Common Stock ($100 par value, authorized 8,000 shares) $480,000
Retained Earnings                                                                $294,000

1) Prepare entries in hournal form to record the following transactions, which took place during 2015:
    a) 280 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost
    method).
    b) A $20 per share cash dividend was declared.
    c) The dividend declared in (b) above was paid.
    d) The treasuryshares pruchased in (a) above were resold at $102 per share.
    e) 500 shares of outstanding stock were purchased at $105 per share.
    f) 350 of the shares purchased in (e) above were resold at $96 per share.

2) Prepare the stockholders' equity section of Washington Company's balance sheet after giving effect to these transactions, assuming that the net income for 2015 was $94,000. State law requires restriction of retained earnings for the amount of treasury stock.

Solutions

Expert Solution

Journal entries :

No account and explanation debit credit
a Treasury Stock (280*97) 27160
Cash 27160
(To record treasury stock purchased)
b Cash dividend (4800-280)*20 90400
Dividend payable 90400
(To record dividend declared)
c Dividend payable 90400
Cash 90400
(To record dividend paid)
d Cash (280*102) 28560
Treasury Stock 27160
Paid in capital from sale of treasury Stock 1400
(TO record sale of treasury Stock)
e Treasury Stock (500*105) 52500
Cash 52500
(To record treasury Stock purchased)
f Cash (350*96) 33600
Paid in capital from sale of treasury Stock 1400
Retained earnings 1750
Treasury Stock (350*105) 36750
(To record sale of treasury Stock)

2) Prepare the stockholders' equity section of Washington Company's balance sheet after giving effect to these transactions

Paid in capital
Common Stock 480000
Total paid in capital 480000
Retained earnings 295850
TOtal 775850
Less; Treasury Stock (150*105) -15750
Total Stockholder's equity 760100

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Novak Company has the following stockholders’ equity accounts at December 31, 2017. Common Stock ($100 par...
Novak Company has the following stockholders’ equity accounts at December 31, 2017. Common Stock ($100 par value, authorized 7,900 shares) $483,500 Retained Earnings 307,400 Prepare entries in journal form to record the following transactions, which took place during 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (1) 300 shares of outstanding stock were purchased at...
Grouper Company has the following stockholders’ equity accounts at December 31, 2017. Common Stock ($100 par...
Grouper Company has the following stockholders’ equity accounts at December 31, 2017. Common Stock ($100 par value, authorized 8,800 shares) $523,200 Retained Earnings 309,100 Prepare entries in journal form to record the following transactions, which took place during 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (1) 280 shares of outstanding stock were purchased at...
On January 1, 2014, Geffrey Corporation had the following stockholders’ equity accounts. Common Stock ($24 par...
On January 1, 2014, Geffrey Corporation had the following stockholders’ equity accounts. Common Stock ($24 par value, 70,000 shares issued and outstanding) $1,680,000 Paid-in Capital in Excess of Par—Common Stock 193,600 Retained Earnings 636,900 During the year, the following transactions occurred. Feb. 1 Declared a $3 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the...
Cullumber Company has the following stockholders’ equityaccounts at December 31, 2020.Common Stock ($100 par...
Cullumber Company has the following stockholders’ equity accounts at December 31, 2020.Common Stock ($100 par value, authorized 7,400 shares)$515,700Retained Earnings307,900Prepare entries in journal form to record the following transactions, which took place during 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)(1)290 shares of outstanding stock were purchased at $97 per share. (These are to be...
Red Apple Company has the following stockholders’ equity accounts at December 31, 2017. Common Stock ($60...
Red Apple Company has the following stockholders’ equity accounts at December 31, 2017. Common Stock ($60 par value, authorized 25,000 shares) $900.000 Retained Earnings   569,000 Prepare entries in journal form to record the following transactions, which took place during 2018. • 400 shares of outstanding stock were purchased at $73 per share. (These are to be accounted for using the cost method.) • A $4 per share cash dividend was declared. • The dividend declared in (2) above was paid....
Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2018: Preferred stock—$100 par,...
Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2018: Preferred stock—$100 par, nonvoting and nonparticipating, 8% cumulative dividend $ 2,000,000 Common stock—$20 par value 4,000,000 Retained earnings 10,000,000 Haried Company purchases all of Smith's common stock on January 1, 2018, for $14,040,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life. During 2018, Smith reports earning $450,000 in net...
Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2018: Preferred stock—$100 par,...
Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2018: Preferred stock—$100 par, nonvoting and nonparticipating, 6% cumulative dividend $ 2,230,000 Common stock—$20 par value 4,230,000 Retained earnings 10,230,000 Haried Company purchases all of Smith's common stock on January 1, 2018, for $14,520,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life During 2018, Smith reports earning $680,000 in net...
Sheridan Company had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par)...
Sheridan Company had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par) $514,500, Paid-in Capital in Excess of Par—Common Stock $181,440, and Retained Earnings $103,110. In 2020, the company had the following treasury stock transactions. Mar. 1 Purchased 5,850 shares at $8 per share. June. 1 Sold 1,120 shares at $12 per share. Sept. 1 Sold 1,320 shares at $11 per share. Dec. 1 Sold 1,180 shares at $6 per share. a) Journalize the treasury stock...
Kendall Company reports the following components of stockholders’ equity on December 31, 2016: Common stock—$10 par...
Kendall Company reports the following components of stockholders’ equity on December 31, 2016: Common stock—$10 par value, 140,000 shares authorized, 60,000 shares issued and outstanding $ 600,000 Paid-in capital in excess of par value, common stock 90,000 Retained earnings 500,000 Total stockholders' equity $ 1,190,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 6,000 shares of its own stock at $23 cash per share. Jan. 5 Directors declared a $2 per share cash dividend...
Kendall Company reports the following components of stockholders’ equity on December 31, 2016: Common stock—$10 par...
Kendall Company reports the following components of stockholders’ equity on December 31, 2016: Common stock—$10 par value, 140,000 shares authorized, 60,000 shares issued and outstanding $ 600,000 Paid-in capital in excess of par value, common stock 90,000 Retained earnings 500,000 Total stockholders' equity $ 1,190,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 6,000 shares of its own stock at $23 cash per share. Jan. 5 Directors declared a $2 per share cash dividend...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT