https://newconnect mheducation.com/flow/con ems Help Save & Exit Check my Alexan

Question

https://newconnect mheducation.com/flow/con ems Help Save & Exit Check my Alexander Corporation reports the following components of stockholders' equity on December 3 , 2017 Common stock-$25 par value, 60,080 shares authorized, 35,e80 shares issued and outstanding $ 875,0ee 70,080 357,000 $1,382,0ee Paid-in capital in excess of par value, common stock Retained earnings Total stockholders equity In year 2018, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 3,see 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 uly 9 Sold 1,480 of its treasury shares at $38 cash per share. Aug. 27 Sold 1,750 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 $57,000 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 2018. 2. Prepare a statement of retained earnings for the year ended December 31, 2018 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2018.

Explanation / Answer

Alexander Corporation Date General,Journal Amt(Dr) Amt (Cr) 02-Jan Treasury Stock-Common (3500 shares @$25) $           87,500.00     To Cash $                       87,500.00 (Being amount of purchased on own 3500 shares @$25) 07-Jan Retained Earnings(35000-3500)*$1.50 $           47,250.00    To Common dividend Payable $                       47,250.00 (Being amount of dividend decalred on shares (35000-3500)@$1.50 28-Feb Common Dividend Payable $           47,250.00    To Cash $                       47,250.00 (Being amount of dividend paid) 09-Jul Cash $           42,000.00    To Treasury Stock, common $                       35,000.00    To Paid in Capital excess of par $                         7,000.00 (Being amount of 1400 treasury shares @$30) 27-Aug Cash(1750*$20) $           35,000.00 Paid in Capital ,treasury stock $              7,000.00 Retained Earnings($43750-$35000-$7000) $              1,750.00    To Treasury Stock,Common Stock(1750*$25) $                       43,750.00 (Being amount of 1750 treasury stock issued @$20) 09-Sep Retained Earnings(35000-3500+1400+1750)*$2 $           69,300.00    To Common Stock dividend payable $                       69,300.00 (Being amount of dividend payable) 22-Oct Common stock dividend payable $           69,300.00    To Cash $                       69,300.00 (Being amount of dividend paid) 31-Dec Income Summary(given) $           57,000.00    To Retained Earnings $                       57,000.00 (Being amount of income transfer to retained earnings account) Alexander Corporation Statement of Retained Earnings For Year Ended December 31st,2018 Retained Earnings, December 31st,2017 $        3,57,000.00 Add: Net Income $           57,000.00 $        4,14,000.00 Less: Cash dividend declared($47250+$69300) $      -1,16,550.00 Less: Treasury Stock reissuances $            -1,750.00 Retained Earnings, December 31st,2018 $        2,95,700.00 Alexander Corporation Stockholder's Equity Section of Balance Sheet For Year Ended December 31st,2018 Common Stock @$25 $        8,75,000.00 Paid in capital excess of par value,common stock $           70,000.00 Retained Earnings $        2,95,700.00 Less: Cost of treasury stock $            -8,750.00 Total stockholder's equity $     12,31,950.00

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