Context Corporation reports the following components of stockholders equiry on D

Question

Context Corporation reports the following components of stockholders equiry on December 31, 2011 Common stock-$15 par value, 1 Paid-in capital in excess of par value, common stock Retained earnings $ 825,000 80,000 430,000 Total stockholders' equity $1,335,000 In year 2012, the following transactions affected ts stockholders equity accounts Jan. Jan. 1 5 Purchased 5,500 shares of lts own stock at $20 cash per share. Directors declared a $6 per share cash dividend payable on Feb 28 to the Feb. 5 stockholders of record. Feb. 28 Pald the dividend declared on January 5 July 6 Sold 2,063 of its treasury shares at $24 cash per share. Aug. 22 Sold 3,437 of its treesury shares at $17 cash per share. Sept 5 Directors declared a $6 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 $428,000 credit balance (from net incomej in the income Summary account to Retalned Earnings eBook & Resources References

Explanation / Answer

Answer:

Jan. 1

Dr. Treasury Stock,common $110,000
Cr. Cash                                                   $110,000

Jan. 5
Dr. Retained Earnings $297,000
Cr. Common Dividend Payable $297,000

Feb. 28
Dr. Common Dividend Payable $297,000
Cr. Cash $297,000

July 6
Dr. Cash $49512
Cr. Treasury Stocks, common       $41260
Cr. Paid-in Capital, treasury stock $8252

Aug. 22
Dr. Cash $58429
Dr. Paid-in Capital, Treasury stock $8252

Dr Retained Earnings 2059
Cr. Treasure Stocks,Common $68740

Sep. 5
Dr. Retained Earnings $330,000
Cr. Common Dividend Payable $330,000

Oct. 28
Dr. Common Dividend Payable $330,000
Cr. Cash $330,000

Dec. 31
Dr. Income Summary $428,000
Cr. Retained Earnings $428,000

Answer:2

Answer:

Jan. 1

Dr. Treasury Stock,common $110,000
Cr. Cash                                                   $110,000

Jan. 5
Dr. Retained Earnings $297,000
Cr. Common Dividend Payable $297,000

Feb. 28
Dr. Common Dividend Payable $297,000
Cr. Cash $297,000

July 6
Dr. Cash $49512
Cr. Treasury Stocks, common       $41260
Cr. Paid-in Capital, treasury stock $8252

Aug. 22
Dr. Cash $58429
Dr. Paid-in Capital, Treasury stock $8252

Dr Retained Earnings 2059
Cr. Treasure Stocks,Common $68740

Sep. 5
Dr. Retained Earnings $330,000
Cr. Common Dividend Payable $330,000

Oct. 28
Dr. Common Dividend Payable $330,000
Cr. Cash $330,000

Dec. 31
Dr. Income Summary $428,000
Cr. Retained Earnings $428,000

Answer:2

CONTEXT CORPORATION Statement of retained earnings For the year ended December 31,2012 Retained earnings, Dec. 31, 2011 430000 Add: Net income 428000 858000 Less: cash dividend declared 627000 Less: Treasury stock Reissuances 2059 Retained earnings, Dec. 31, 2012 228941 Stockholder's Equity Section of the balance sheet December 31,2012 Common stock 825000 Contributed capital in excess of par value, common stock 80000 Total contributed capital 905000 Retained earnings 228941 Total stockholder's equity 1133941

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