Question

In: Accounting

Problem 2: On January 1, 2020 Crinkle Cut Fries Corporation had the following stockholder’s equity accounts....

Problem 2: On January 1, 2020 Crinkle Cut Fries Corporation had the following stockholder’s equity accounts.

Common Stock ($5 par value, 200,000 shares issued and outstanding) Paid in capital in Excess of Par- Common Stock
Retained Earnings

During the year, the following transactions occurred.

$1,000,000 200,000 840,000

Jan 15 Declared a $1 cash dividend per share to stockholders of record on January 31, payable February

th 15 .

Feb 15 Paid the dividend declared in January
Apr 15 Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On

April 15, the market price of the stock was $15 per share.
Jul 1 Announced a 2-for-1 stock split. The market price per share prior to the announcement was $17.

(The new par value is $2.50)
Dec 1 Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable

January 10, 2021
31 Determined that net income for the year was $250,000.

A. Journalize the transactions and the closing entries for net income and dividends.



Problem 3: Brett Adamo Corporation had the following stockholder’s equity accounts on January 1, 2020. Common Stock ($1 par) $400,000, paid-in capital in Excess of Par-Common Stock $500,000, and Retained earnings $100,000. In 2020, the company had the following treasury stock transactions.

Mar. 1 June. 1 Sept 1 Dec 1

Purchased 5,000 shares at $7 per share. Sold 1,000 shares at $10 per share.
Sold 2,000 shares at $9 per share
Sold 1,000 shares at $5 per share.

Brett Adamo Corp uses the cost method of accounting for treasury stock.

A. Journalize the treasury stock transactions for 2020.

Solutions

Expert Solution

I have passed all the JOurnal entries with working below the entry .We have also prepared the Reatained Earning accounts to show the Closing balance.

Please refer the attachments

Thanks


Related Solutions

On January 1, 2020, Agassi Corporation had the following stockholders’ equity accounts. Common Stock ($10 par...
On January 1, 2020, Agassi Corporation had the following stockholders’ equity accounts. Common Stock ($10 par value, 50,000 shares issued and outstanding) $500,000 Paid-in Capital in Excess of Par—Common Stock 495,000 Retained Earnings 635,000 During 2020, the following transactions occurred. Jan. 15 Declared and paid a $1.05 cash dividend per share to stockholders. Apr. 15 Declared and paid a 10% stock dividend. The market price of the stock was $13 per share. May 15 Reacquired 2,200 common shares at a...
On January 1, 2020, Crane Corporation had the following stockholders’ equity accounts. Common Stock ($26 par...
On January 1, 2020, Crane Corporation had the following stockholders’ equity accounts. Common Stock ($26 par value, 56,500 shares issued and outstanding) $1,469,000 Paid-in Capital in Excess of Par—Common Stock 200,000 Retained Earnings 611,000 During the year, the following transactions occurred. Feb. 1 Declared a $2 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the...
Ayayai Corporation had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par)...
Ayayai Corporation had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par—Common Stock $200,000, and Retained Earnings $120,000. In 2020, the company had the following treasury stock transactions. Mar. 1 Purchased 5,500 shares at $9 per share. June 1 Sold 1,000 shares at $13 per share. Sept. 1 Sold 1,000 shares at $11 per share. Dec. 1 Sold 1,500 shares at $7 per share. Ayayai Corporation uses the cost...
On January 1, 2014 Primo Corporation had the following had the following equity accounts.   Amount in...
On January 1, 2014 Primo Corporation had the following had the following equity accounts.   Amount in OMR Share Capital – Ordinary 750,000 (OMR 10 par value, 75,000 shares issued and outstanding) Share Premium – Ordinary 200,000 Retained Earnings 540,000 During the year, the following transactions occurred. Jan. 15 Declared an OMR 1 cash dividend per share to shareholders of record on January 31, payable on February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 30%...
Problem 11-2A Fechter Corporation had the following stockholders’ equity accounts on January 1, 2015: Common Stock...
Problem 11-2A Fechter Corporation had the following stockholders’ equity accounts on January 1, 2015: Common Stock ($4 par) $431,680, Paid-in Capital in Excess of Par—Common Stock $223,430, and Retained Earnings $119,370. In 2015, the company had the following treasury stock transactions. Mar. 1 Purchased 6,770 shares at $8 per share. June 1 Sold 1,230 shares at $12 per share. Sept. 1 Sold 1,370 shares at $10 per share. Dec. 1 Sold 1,160 shares at $6 per share. Fechter Corporation uses...
Problem 14-1A On January 1, 2017, Geffrey Corporation had the following stockholders’ equity accounts. Common Stock...
Problem 14-1A On January 1, 2017, Geffrey Corporation had the following stockholders’ equity accounts. Common Stock ($22 par value, 54,000 shares issued and outstanding) $1,188,000 Paid-in Capital in Excess of Par—Common Stock 199,000 Retained Earnings 626,000 During the year, the following transactions occurred. Feb. 1 Declared a $3 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the...
Sheridan Company had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par)...
Sheridan Company had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par) $514,500, Paid-in Capital in Excess of Par—Common Stock $181,440, and Retained Earnings $103,110. In 2020, the company had the following treasury stock transactions. Mar. 1 Purchased 5,850 shares at $8 per share. June. 1 Sold 1,120 shares at $12 per share. Sept. 1 Sold 1,320 shares at $11 per share. Dec. 1 Sold 1,180 shares at $6 per share. a) Journalize the treasury stock...
Daryl Corporation produces and sells hats. The Stockholders' Equity accounts on January 1, 2020 are as...
Daryl Corporation produces and sells hats. The Stockholders' Equity accounts on January 1, 2020 are as follows: Common Stock, $5 par (100,000 shares authorized, 40,000 shares issued)          $200,000 PIC in Excess par - Common Stock                                        $100,000 Retained Earnings                                                      $750,000 Treasury Stock (5,000 shares at cost)                                      $50,000 The following transactions occurred during the year: 1/09   Declared a Cash Dividend of $0.80 per share on the Common Stock outstanding.            Dividend will be paid on 2/09. 2/09   Paid the Cash Dividend that was previously declared on 1/16. 3/23   Reissued 2,500...
The equity accounts of Donald Corporation on January 1, 2020, were as follows. Share Capital –...
The equity accounts of Donald Corporation on January 1, 2020, were as follows. Share Capital – Preference 8%, cumulative, $50 par,   12,000 share authorized and issued           $600,000 Share Capital – Ordinary $1 stated value, 2,200,000 shares authorized,   1,200,000 shares issued and 1,170,000 shares outstanding      1,200,000   Share Premium – Preference       120,000 Share Premium – Ordinary​         1,300,000 Retained Earnings​           2,000,000 Treasury Shares – Ordinary (30,000 shares)​      120,000 During 2020, the company had...
Crane Rental Corporation had the following balances in its shareholders' equity accounts at January 1, 2021:...
Crane Rental Corporation had the following balances in its shareholders' equity accounts at January 1, 2021: Accumulated other comprehensive income (loss) $ (25,000 ) Contributed surplus—reacquisition of common shares 564,000 Retained earnings 1,580,000 Common shares (32,000 shares) 736,000 Crane had the following transactions and events during 2021: Feb. 2 Repurchased 900 shares for $44,100. Apr. 17 Declared and paid cash dividends of $80,000. Oct. 29 Issued 2,300 shares for $92,000 cash. Dec. 31 Reported comprehensive income of $384,000, which included...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT