Alexander Corporation reports the following components of stockholders\' equity

Question

Alexander Corporation reports the following components of stockholders' equity on December 31, 2016 5 Common stock-$25 par value, 60,000 shares authorized, 38,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings s 950,eeo 76,000 Total stockholders' equity In year 2017, the following transactions affected its stockholders equity accounts an. 2 Purchased 3,800 shares of its own stock at $25 cash per share. Jan. 7 oirectors declared a 51.se per share cash dividend payable on February 28 to the February 9 stockholders of record. Feb. 28 Paid the dividend declared on 3anuary uly 9 Sold 1,520 of its treasury shares at $30 cash per share Ag 27 Sold 1,9ee of its treasury shares at $20 cash per share. Sept. 9 Directors declared $2 per share cash dividend payable on October n to the Septeeber ,, stockholders of record. Oct. 22 Pald the dividend declared on September 9 Dec. 31 Closed the $60,000 credit balance (from net income) In the Incone Summary accoust to Retained tarnings. Required: 1. Prepare journal entries to record each of these transactions for 2017 2. Prepare a statement of retained eamings for the year ended December 31, 2017 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31 2017 Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions for 2017 Journal entry worksheet Record the purchase 3,800 shares of its own common stock for $25 cash per share O Type here to search

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 2-Jan Treasury Stock    95,000.00 3,800 Shares X $25 Cash    95,000.00 (Record the purchase of Treasury Stock) 7-Jan Retained Earnings    51,300.00 34,200 shares X $1.50 Cash Dividend Payable    51,300.00 (Record the Cash Dividend declared) 28-Feb Cash Dividend Payable                           51,300.00 Cash    51,300.00 (record the dividend paid) 9-Jul Cash    45,600.00 1,520 Shares X $30 Treasury Stock    38,000.00 1,520 Shares X $25 Paid-In Capital in Excess of Par Value - Treasury      7,600.00 1,520 Shares X ($30-$25) (Record the sale of treasury stock) 27-Aug Cash    38,000.00 1,900 Shares X $20 Paid-In Capital in Excess of Par Value - Treasury      7,600.00 Retained Earnings      1,900.00 $47,500 - ($38,000 + $7,600) Treasury Stock    47,500.00 1,900 Shares X $25 (Record the sale of treasury stock) 9-Sep Retained Earnings    75,240.00 37,620 shares X $2 Cash Dividend Payable    75,240.00 (Record the Cash Dividend declared) 22-Oct Cash Dividend Payable                           75,240.00 Cash    75,240.00 (record the dividend paid) 31-Dec Income Summary                      60,000.00 Retained Earnings    60,000.00 (To Close Net Income) Answer 2 ALEXANDER CORPORATION Retained Earning Statement For the Year Ended Dec 31, 2016 Balance, Jan 1, as Reported        368,000.00 Add: Net Income / (Loss)          60,000.00 Less: Cash Dividends - Common     (126,540.00) Balance, Dec-31        301,460.00 Answer 3. ALEXANDER CORPORATION Balance Sheet (Partial) For the Year Ended Dec 31, 2016 Stockholders' Equity Paid-in Capital Common Stock - $25 Par Value, Authorized 60,000 Shares, 38,000 Shares Issued & Outstanding        950,000.00 Additional Paid-in Capital Paid-in Capital in Excess of Par-Common Stock      76,000.00 Paid-in Capital in Excess of Par-Treasury Stock                     -   Total Additional Paid-in Capital          76,000.00 Total Paid-in Capital    1,026,000.00 Retained Earnings        301,460.00 Sub-total    1,327,460.00 Treasury Stock - 380 Shares          (9,500.00) Total Stockholders' Equity    1,317,960.00

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