Question
In: Accounting
Chiefs Corporation reports the following components of stockholders’ equity at December 31, 2017. Common stock—$25 par...
Chiefs Corporation reports the following components of
stockholders’ equity at December 31, 2017.
Common stock—$25 par value, 70,000 shares authorized,
50,000 shares issued and outstanding $1,250,000
Paid-in capital in excess of par value, common stock 100,000
Retained earnings 410,000
Total stockholders’ equity $1,760,000
During the year, the following transactions affected its
stockholders’ equity accounts.
Jan. 2 Purchased 6,000 shares of its own stock at $30 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 2,000 of its treasury shares at $28 cash per share.
Required:
1. Prepare journal entries to record each of these transactions- Record the entries below.
2. What is the ending balance in retained
earnings for the year ended December 31, 2018
3. What is the ending issued and outstanding shares (2 different
numbers)? 3pts.
Solutions
Expert Solution
| 1) | |||
| Date | Particulars | Debit | Credit |
| 2-Jan | Treasury Stock (6000*30) | $ 180,000.00 | |
| Cash | $ 180,000.00 | ||
| ( To record purchase of treasury stock) | |||
| 7-Jan | Dividend (50000shares-6000 shares*$1.5) | $ 66,000.00 | |
| Dividend Payable | $ 66,000.00 | ||
| ( to record declaration of dividend) | |||
| 7-Jan | Retained Earning | $ 66,000.00 | |
| Dividend | $ 66,000.00 | ||
| ( To record trnsfer of dividend to retained earning) | |||
| 28-Feb | Dividend Payable | $ 66,000.00 | |
| Cash | $ 66,000.00 | ||
| ( to record payment of dividend) | |||
| 9-Jul | Cash (2000*28) | $ 56,000.00 | |
| Retained Earning (2000*2) | $ 4,000.00 | ||
| Treasury Stock (2000*30) | $ 60,000.00 | ||
| ( to Record Sale of Treasury Stock at loss) | |||
| 2) | Retained Earning | $ 410,000.00 | |
| Less | Dividend | $ (66,000.00) | |
| Less | Loss on Treasury Stock | $ (4,000.00) | |
| Ending Balance | $ 340,000.00 | ||
| 3) | Ending Balance | ||
| Issued Shares | $ 50,000.00 | ||
| Shares Outstanding (50000 shares - 4000 treasuy Stock) | $ 46,000.00 |
ekkarill92 answered 1 year agoRelated Solutions
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$25 par...
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Common stock—$25 par value, 70,000 shares authorized,
46,000 shares issued and outstanding
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1,150,000
Paid-in capital in excess of par value, common stock
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Retained earnings
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Total stockholders’ equity
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In year 2017, the following transactions affected its stockholders’
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Purchased 4,600 shares of its own stock at $25 cash per
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Jan.
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Directors declared a $1.50 per share cash dividend...
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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...
Alexander Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$25 par...
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...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$25 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$25 par value,
100,000 shares authorized,
50,000 shares issued and outstanding
$
1,250,000
Paid-in capital in excess of par
value, common stock
60,000
Retained earnings
430,000
Total stockholders' equity
$
1,740,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 5,000 shares of its own
stock at $15 cash per share.
Jan.
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Directors declared a $6 per share
cash dividend...
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Paid-in capital in excess of par value, common stock
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Retained earnings
354,000
Total stockholders’ equity
$
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During the year, the following transactions affected its
stockholders’ equity accounts.
Jan.
2
Purchased 3,400 shares of its own stock at $25 cash per
share.
Jan.
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Directors declared a $1.50 per share cash...
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Common stock—$25 par
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31,000 shares issued and outstanding
$
775,000
Paid-in capital in excess of par
value, common stock
62,000
Retained earnings
343,000
Total stockholders’ equity
$
1,180,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
2
Purchased 3,100 shares of its own
stock at $25 cash per share.
Jan.
7
Directors declared a $1.50 per
share cash dividend...
ohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$25 par...
ohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
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
430,000
Total stockholders' equity
$
1,875,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 5,500 shares of its own
stock at $25 cash per share.
Jan.
5
Directors declared a $6 per share
cash dividend...
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stockholders’ equity at December 31, 2018.
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$
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Paid-in capital in excess of par value, common stock
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Retained earnings
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Total stockholders’ equity
$
1,546,000
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stockholders’ equity accounts.
Jan.
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Purchased 4,300 shares of its own stock at $25 cash per
share.
Jan.
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Directors declared a $1.50 per share cash...
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