Alexander Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$25 par...

Alexander Corporation reports the following components of stockholders’ equity at December 31, 2018.


Common stock—$25 par value, 70,000 shares authorized, 43,000 shares issued and outstanding	$	1,075,000
Paid-in capital in excess of par value, common stock		86,000
Retained earnings		385,000
Total stockholders’ equity	$	1,546,000

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

Jan.	2	Purchased 4,300 shares of its own stock at $25 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 1,720 of its treasury shares at $30 cash per share.
Aug.	27	Sold 2,150 of its treasury shares at $20 cash per share.
Sept.	9	Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.
Oct.	22	Paid the dividend declared on September 9.
Dec.	31	Closed the $65,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required:
1. Prepare journal entries to record each of these transactions.
2. Prepare a statement of retained earnings for the year ended December 31, 2019.
3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2019.

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ekkarill92 answered 11 months ago

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