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 $97 per share. (These are to be accounted for using the cost method.)

(2) A $20 per share cash dividend was declared.

(3) The dividend declared in (2) above was paid.

(4) The treasury shares purchased in (1) above were resold at $103 per share.

(5) 450 shares of outstanding stock were purchased at $105 per share.

(6) 320 of the shares purchased in (5) above were resold at $96 per share.

Prepare the stockholders’ equity section of Novak Company’s balance sheet after giving effect to these transactions, assuming that the net income for 2018 was $85,900. State law requires restriction of retained earnings for the amount of treasury stock.

Expert Solution

A	Treasury stock	29100	(300*97)
	Cash		29100
b	Cash Dividend	90700	(4535*20)
	Dividend payable		90700
c	Dividend payable	90700
	Cash		90700
d	Cash	30900	(300*103)
	Treasury stock		29100
	Paid in value in excess tresury stock		1800
e	Treasury stock	47250	(450*105)
	Cash		47250
f	Cash	30720	(320*96)
	Paid in value in excess trasury stock	1800
	Retained earnings	1080
	Treasury stock		33600	(320*105)

	Stockholders equity section
	Common stock		470500
	Retained earnings		301520
	Total		772020
Less	Treasury stock (130*105)		13650
	Total stockholders equity		758370

ekkarill92 answered 2 years ago

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...

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...

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....

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...

The stockholders’ equity accounts of Stellar Company have the following balances on December 31, 2017. Common...

The stockholders’ equity accounts of Stellar Company have the following balances on December 31, 2017. Common stock, $10 par, 285,000 shares issued and outstanding $2,850,000 Paid-in capital in excess of par—common stock 1,230,000 Retained earnings 5,240,000 Shares of Stellar Company stock are currently selling on the Midwest Stock Exchange at $38. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...

The stockholders’ equity accounts of Ayayai Company have the following balances on December 31, 2017. Common...

The stockholders’ equity accounts of Ayayai Company have the following balances on December 31, 2017. Common stock, $3 par, 1,000,000 shares issued and outstanding $3,000,000 Paid-in-capital in excess of par – common stock 4,500,000 Retained earnings 8,318,000 Shares of Ayayai Company stock are currently selling on the Midwest Stock Exchange at $23. Prepare the appropriate journal entries for each of the following independent cases. The stockholders’ equity accounts of Ayayai Company have the following balances on December 31, 2017. Common...

The stockholders’ equity accounts of Sarasota Company have the following balances on December 31, 2017. Common...

The stockholders’ equity accounts of Sarasota Company have the following balances on December 31, 2017. Common stock, $10 par, 281,000 shares issued and outstanding $2,810,000 Paid-in capital in excess of par—common stock 1,220,000 Retained earnings 5,600,000 Shares of Sarasota Company stock are currently selling on the Midwest Stock Exchange at $34. Prepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...

Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$25 par...

Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$25 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 1,375,000 Paid-in capital in excess of par value, common stock 70,000 Retained earnings 400,000 Total stockholders' equity $ 1,845,000 In year 2018, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 5,500 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $2 per share cash dividend...

Alexander Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$25 par...

Alexander Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$25 par value, 50,000 shares authorized, 34,000 shares issued and outstanding $ 850,000 Paid-in capital in excess of par value, common stock 68,000 Retained earnings 354,000 Total stockholders’ equity $ 1,272,000 In year 2018, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 3,400 shares of its own stock at $25 cash per share. Jan. 7 Directors declared a $1.50 per share cash dividend...

Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$15 par...

Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$15 par value, 100,000 shares authorized, 50,000 shares issued and outstanding $ 750,000 Paid-in capital in excess of par value, common stock 70,000 Retained earnings 400,000 Total stockholders' equity $ 1,220,000 In year 2018, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 6,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend...

Question