Question

In: Accounting

Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 1,100,000 Paid-in capital...

Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 1,100,000 Paid-in capital in excess of par value, common stock 70,000 Retained earnings 400,000 Total stockholders' equity $ 1,570,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 5,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 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 1,875 of its treasury shares at $24 cash per share. Aug. 22 Sold 3,125 of its treasury shares at $17 cash per share. Sept. 5 Directors declared a $4 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 $388,000 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.

Solutions

Expert Solution

Date Account Description Debit Credit
1-Jan Treasury Stock    100,000.00
Cash    100,000.00
5-Jan Dividend    200,000.00
Dividend Payable    200,000.00
28-Feb Dividend Payable    200,000.00
Cash    200,000.00
6-Jul Cash      45,000.00
Paid in Capital        7,500.00
Treasury Stock      37,500.00
22-Aug Cash      53,125.00
Retained Earnings        1,875.00
Paid in capital        7,500.00
Treasury Stock      62,500.00
5-Sep Dividend    220,000.00
Dividend Payable    220,000.00
28-Oct Dividend Payable    220,000.00
Cash    220,000.00
Statement of Retained Earnings
Retained Earnings, Dec 31 2016        400,000.00
Loss on Sale of Treasury Stock          (1,875.00)
Net Income for the Year        388,000.00
Dividend Paid     (420,000.00)
Retained Earnings, Dec 31 2017        366,125.00
Stockholder's Equity
Common Stock $20 par value , 55000 shares Issued and Shares Outstanding    1,100,000.00
Paid in Excess Capital - Common          70,000.00
Retained Earnings        366,125.00
Total Stockholder's Equity    1,536,125.00


Dear Student,

Best effort has been made to give quality and correct answer. But if you find any issues please comment your concern. I will definitely resolve your query.

Also please give your positive rating.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $1,100,000 Paid-in capital in...
Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $1,100,000 Paid-in capital in excess of par value, common stock 70,000 Retained earnings 430,000 Total stockholders' equity $1,600,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,500 shares of its own stock at $25 cash per share. Jan. 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the...
Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 1,100,000 Paid-in capital...
Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 1,100,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 460,000 Total stockholders' equity $ 1,620,000 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 $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28...
Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $550,000 Paid-in capital in...
Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $550,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 460,000 Total stockholders' equity $1,070,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,500 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the...
create journal entries: Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $...
create journal entries: Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 550,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 460,000 Total stockholders’ equity $ 1,090,000 In year 2016, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 5,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of...
Common stock—$25 par value, 150,000 shares authorized, 71,000 shares issued and outstanding $ 1,775,000 Paid-in capital...
Common stock—$25 par value, 150,000 shares authorized, 71,000 shares issued and outstanding $ 1,775,000 Paid-in capital in excess of par value, common stock 525,000 Retained earnings 675,000 Total stockholders’ equity $ 2,975,000 On February 5, the directors declare a 18% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $41 per share on February 5 before the stock dividend. The stock’s market value is $35 per share on February 28. 2....
Prepare statement of retained earnings: Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and...
Prepare statement of retained earnings: Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 550,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 460,000 Total stockholders’ equity $ 1,090,000 In year 2016, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 5,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend payable on Feb. 28 to the Feb. 5...
Stockholders' Equity Paid-In Capital: Common Stock—$5 Par Value; 1,300 shares authorized, 310 shares issued and outstanding...
Stockholders' Equity Paid-In Capital: Common Stock—$5 Par Value; 1,300 shares authorized, 310 shares issued and outstanding $1,550 Paid-In Capital in Excess of Par—Common 4,650 Total Paid-In Capital 6,200 Retained Earnings 59,000 Total Stockholders' Equity $65,200 DATA TABLE ABOVE Western Amusements Corporation had the following? stockholders' equity on November 30?: On December? 30, Western purchased 100 shares of treasury stock at $ 14 per share. Requirement 1. Journalize the purchase of the treasury stock.? (Record debits? first, then credits. Select the...
Preferred 1% Stock, $50 par (100,000 shares authorized, 79,600 shares issued) $3,980,000 Paid-In Capital in Excess...
Preferred 1% Stock, $50 par (100,000 shares authorized, 79,600 shares issued) $3,980,000 Paid-In Capital in Excess of Par—Preferred Stock 159,200 Common Stock, $3 par (5,000,000 shares authorized, 1,870,000 shares issued) 5,610,000 Paid-In Capital in Excess of Par—Common Stock 1,215,500 Retained Earnings 31,497,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: Jan. 5 Issued 532,900 shares of common stock at $9, receiving cash. Feb. 10 Issued 11,000 shares of preferred...
Preferred Stock- 5% $11 Par Value 5,500 shares authorized 4,000 shares issued and outstanding Common Stock...
Preferred Stock- 5% $11 Par Value 5,500 shares authorized 4,000 shares issued and outstanding Common Stock - $.20 Par Value 2,000,000 shares authorized, 1,650,000 shares issued and outstanding Requirement 1. Sapphire declares cash dividends of $28,000 for 2018. How much of the dividends goes to preferred? stockholders? How much goes to common? stockholders? ?(Complete all input boxes. Enter? "0" for any zero? amounts.) Sapphire dividend would be divided between preferred and common stockholders in this? manner: Total Dividend Dividend to...
A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9...
A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9 per share.  Subsequently, the company declared and issued a 10% stock dividend. The market price of the shares is $20 per share. 53. What is the effect of the dividend on Paid in Capital?    a. Paid-in Capital decreased b. Paid-in Capital increased c. Paid-in Capital remained the same d. None of the above 54. Refer to the previous question. By what amount did Paid...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT