CSecure httpnewconnectmheducstion.com/fow/connect.htm Chapter 13 Homework Sarved

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CSecure httpnewconnectmheducstion.com/fow/connect.htm Chapter 13 Homework Sarved Help Save & Exit Submit Check my work Alexander Corporation reports the following components of stockholders equity on December 31, 2016 Common stock-$25 par value, 5a,ea9 shares authorized, e,880 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 75e, eee e,680 348,8ee $1,148, 689 points eBook Hint Print References In year 2017, the following transactions affected its stockholders' equity accounts. Jan Purchased 3,800 shares of its own stock at $25 cash per share 0an. 7 Directors declared a $1.58 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 1,280 of its treasury shares at $30 cash per share Aug. 27 Sold 1,580 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 $52,880 credit balance (from net income) in the Income Summary account to Retained Earnings Requirec 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 Activate Windows Mc to Settings to activate Windons Hill lype here to search ^ 440 1222 PM

Explanation / Answer

1. Journal Entries:-

Treasury Stock

Cash

$75000

$75000

Dividend

Cash

$40500

$ 40500

Cash

Treasury Stock

Additional paid in capital - Treasury Stock

$36000

$30000

$6000

Aug 27

Cash

Additional paid in capital - Treasury Stock

Treasury Stock

$30000

$7500

$37500

Dividend

Cash

$59400

$59400

Profit & loss

Retained Earnings

$52000

$52000

2) Statement of Retained Earnings as on 31st dec

Less: Dividend Paid

on Feb 28

On Oct 22

40500

59400

3) Stocksholders equity sections

Common stock - $25 per Value, 50000 shares authorised,

30000 share issued(out of which 300 are held in treasury stock)

Journal Entries Date Particulars Debit Credit Jan. 2

Treasury Stock

Cash

$75000

$75000

jan 7 no entry Feb 28

Dividend

Cash

$40500

$ 40500

july 9

Cash

Treasury Stock

Additional paid in capital - Treasury Stock

$36000

$30000

$6000

Aug 27

Cash

Additional paid in capital - Treasury Stock

Treasury Stock

$30000

$7500

$37500

Sep 9 No Entry Oct 22

Dividend

Cash

$59400

$59400

Dec 31

Profit & loss

Retained Earnings

$52000

$52000

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