0 You skipped this question in the previous attempt Exercise 11-18 Cash dividend

Question

0 You skipped this question in the previous attempt Exercise 11-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity on December 31, 2016: Common stock-$25 par value, 50,000 shares authorized, 30, 000 shares issued and outstanding Paid-in capital in excoss of par valuo, common atock Retained earnings Total stockholders' equity 750,000 50,000 340, 000 $1,140,000 ces In year 2017, the following transactions affected its stockholders' equity accounts birectora declared a $1.50 per share cash dividend payable on February 28 to the Pebruary 9 stockholders of record. Jan. 2 Purchased 3,000 shares of its own atock at $25 cash per share. Feb. 28 Paid the dividend declared on January 7. July 9 sold 1,200 of its treasury shares at $30 cash per share. Aug. 27 sold 1,500 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 record Oct. 22 Paid the dividend declared on September 9. ance (from not income) in the Income Summary accouns to Rotained Karnings. Required: 1. Prepare journal entries to record each of these transactions for 2017 2. Prepare a statement of retained earnings for the year ended December 31, 2017 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017 Prev 7.d8 Next >

Explanation / Answer

1) Journal entries Date Accounting titles & Explanations Debit Credit 2-Jan Treasury stock 75000 cash (3000*25) 75,000 7-Jan retained earnings 40500 Dividends payable 40,500 (27000*1.50) 28-Feb dividends payable 40,500 cash 40,500 9-Jul cash (1200*30) 36000 Treasury stock (1200*25) 30000 paid in capital in excess of par (1200*5) 6000 27-Aug cash (1,500 *20) 30000 paid in capital in excess of par 6,000 Retained earnings 1500 Treasury stock (1500*25) 37500 9-Sep Retained earnings (29,700*2) 59400 Dividends payable 59,400 22-Oct Dividends payable 59,400 cash 59,400 31-Dec Income sumary 52,000 retained earnings 52,000 Statement of retained earnings opening bal,Jan 1 340,000 Add:Net income for the year 52,000 392,000 less:cash dividend 99900           Treasury stock 1,500 Closing balance of retained earnings ,dec 31 290,600 Stockholders Equity section of balance sheet common stock 750,000 paid in capital in excess of par value ,CS 50,000 Retained earnings 290,600 less Treasury stock (300*25) -7500 total stockholders Equity 1,083,100

Related Questions

Navigate

• Browse (All)
• Browse
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.