Question

GL1101 - Based on Problem 11-2A LO C3, P2, P3

Marcellus Company reports the following components of stockholders’ equity on January 1.

Common stock—$10 par value, 110,000 shares authorized, 40,000 shares issued and outstanding	$	400,000
Paid-in capital in excess of par value, common stock		60,000
Retained earnings		330,000
Total stockholders' equity	$	790,000

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

Jan.		2		Purchased 4,000 shares of its own stock at $23 cash per share.
Jan.		5		Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb.		28		Paid the dividend declared on January 5.
July		6		Sold 1,500 of its treasury shares at $27 cash per share.
Aug.		22		Sold 2,500 of its treasury shares at $20 cash per share.
Sept.		5		Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct.		28		Paid the dividend declared on September 5.
Dec.		31		Closed the $549,500 credit balance (from net income) in the Income Summary account to Retained Earnings.

• Purchased 4,000 shares of its own stock at $23 cash per share.

Note: Enter debits before credits.

	Date Account Title Debit Credit Jan 02

Answer 1

Answer: