Hi could you please compllete all required sections :) Alexander Corporation rep

Question

Hi could you please compllete all required sections :)

Alexander Corporation reports the following components of stockholders' equity on December 31, 2016: Common stock-$25 par value, 60,000 shares authorized, 35,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 875,00e 70,000 357,000 $1,302,000 In year 2017, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 3,500 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. July 9 Sold 1,400 of its treasury shares at $30 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 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

Explanation / Answer

1- Journal Entries in the books of Alexander Corporation for 2017 Date Accounting Titles Explanation Debit Credit Jan-2 Treasury Stock $87,500 (3500 shares X 25 per share)             Cash $87,500 (3500 shares X 25 per share) (Being 3500 common stock repurchased at $25 per share) Jan-7 Retained Earning $47,250            Dividend Payables $47,250 (Being dividend declared @ $1.50 per share) (35000 shares - 3500 shares) X $1.50 per share Feb-28 Dividend Payables $47,250             Cash $47,250 (Being dividend paid) Jul-9 Cash $42,000 (1400 shares X 30 per share)              Treasury Stock $35,000 (1400 shares X 25 per share)              Paid in capital in excess of par value- Treasury Stock $7,000 (1400 shares X (30-25) per share) (Being 1400 treasury share issued at $30 per share) Aug-27 Cash $35,000 (1750 shares X 20 per share) Paid in capital in excess of par value- Treasury Stock $7,000 To the extent credit PIC-Treasury stock Retained Earnings $1,750 Balancing figure (loss above PIC- treasury stock)              Treasury Stock $43,750 (1750 shares X 25 per share) (Being 1750 treasury share issued at $20 per share) Sep-9 Retained Earning $63,000            Dividend Payables $63,000 (Being dividend declared @ $2 per share) (31500 shares X $2 per share) Oct-22 Dividend Payables $63,000             Cash $63,000 (Being dividend paid) Dec-31 Profit & Loss Account $57,000             Retained Earning $57,000 (Being closing entry of income earned to retained earning made) 2- Statement of Retained Earning for the year ende on December 31, 2017 Opening Balance $357,000 Less: Dividend distributed $110,250 ($47250+63000) Less: Loss on treasury stock $1,750 Add: Profit for the year $57,000 Closing Balance $302,000 3- Alexander Corporation Shareholders' Equity December 31, 2017 Amount ($) Common Stock -$25 per value 60,000 Shares authorised 31500 Shares issued & outstanding $787,500 Paid in capital in excess of par value- Common Stock $70,000 Total Paid in Capital $857,500 Retained Earnings $302,000 Subtotal $1,159,500 Less: Treasury Stock at Cost (350 shares at $25 per share) $8,750 Total Shareholders' Equity $1,150,750

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