Horton Company began business on January 1. 2011 by issuing all of its 1.300.000
ID: 2487761 • Letter: H
Question
Horton Company began business on January 1. 2011 by issuing all of its 1.300.000 authorized shares of its S1 par value common stock for $21 per share. On June 30, they declared a cash dividend of $1.60 per share to stockholders of record on July 31. They paid the cash dividend on August 30. On November 1, Horton reacquired 180.000 of its own shares of stock for $26 per share. On December 22 they resold half of these shares for $31 per share. Prepare all of the necessary journal entries to record the events described above (Omit the sign in your response.) Prepare the Stockholders' Equity section of the Balance sheet as of 12/31/2011 assuming that the Net Income for the year v/as $3.960.000 (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)Explanation / Answer
a. Horton Company
General Journal
b. Stockholders' Equity as of December 31, 2011:
Date Account Titles Debit Credit 2011 $ $ January 1 Cash 27,300,000 Common stock 1,300,000 Additional paid-in capital-common stock 26,000,000 June 30 Retained earnings 2,080,000 Dividends payable 2,080,000 August 30 Dividends payable 2,080,000 Cash 2,080,000 November 1 Treasury stock 4,680,000 Cash 4,680,000 December 22 Cash 2,790,000 Treasury stock 2,340,000 Additional paid-in capital-treasury stock 450,000Related Questions
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