Alexander Corporabion reports the following components of stockholders equity on

Question

Alexander Corporabion reports the following components of stockholders equity on December 31, 2013 Common stock $25 par value, 60,000 shares authorized 40,000 shares issued and outstandng Paid in capital in excess of par vakue, common stcck Retained earnings $1,000,000 80,000 375,000 Total stockholders' equty $ 1.455,000 In year 2014, the following transactions afflected its stockholders' equity accounts Jan 2 Purchased 4 000 shares of is own stock at $25 cash per share uan Directors declared a $1.50 per share cash dvidend payable on Feb. 28 to the Feb. 9 stockholders o record Feb. 28 Paid the dividend declared on January 7 July 9 Sold 1,500 of its treasury shares at $30 cash per share Aug. 27 Sold 2.000 of its treasury shares at $20 cash per share Sept 9 Directors deciared a 32 per share cash dvdend payable on October 22 to the September 23 stockhoders of record oc 22 Paid the dudend declared on September Dec 31 Cosed the $62 000 credt balance trom ne: Incomey in the Income Summary account to Retaned Earnings

Explanation / Answer

January 2- treasury stock debit   100000

                 credit cash                         100000

Jan-7      retained earning debit   54000

                credit dividend payable                              54000

Feb 28    dividend payable debit        54000

                credit cash                                              54000

July 9      cash debit    48000

               credit additional paid up capital   8000

               credit treasury stock                     40000

August 27 cash debit    40000

               discount of reissue of treasury stock 10000

               credit treasury stock                     50000

         sep 9 -    retained earnings debit 79200

               credit dividend payable               79200

           Oct- 2 dividend payanle debit     79200

                credit cash                                   79200

income statement summary debit 62000

credit retained earnings     62000

Statement of retained earnings retained earnings opening balance 375000 dividend paid on jan 7 54000 dividend paid on oct 79200 133200 transferred from income summary account 62000 closing balance in retained earnings 303800 statement of equity share capital issued common stock 39600 outstanding 1000000 additional paid up capital 80000 additional paid up capital from treasury stock 8000 total paid in capital 1088000 retained earnings 303800 subtotal 1391800 treasury stock 400 25 10000 discount on treasury stock 10000 Share holders equity 1371800

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