Please Correct the boxes in RED Thank you. & Show all work to ensure accuracy Th

ID: 2590666 • Letter: P

Question

Please Correct the boxes in RED Thank you. & Show all work to ensure accuracy Thank you

Coronado Company has the following stockholders' equity accounts at December 31, 2017. Common Stock ($100 par value, authorized 8,100 shares) Retained Earnings $493,700 321,200 Your answer is correct. Prepare entries in journal form to record the following transactions, which took place during 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (1) 290 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) (2) A $20 per share cash dividend was declared. (3) The dividend declared in (2) above was paid. (4) The treasury shares purchased in (1) above were resold at $102 per share. (5) 490 shares of outstanding stock were purchased at $105 per share. (6) 340 of the shares purchased in (5) above were resold at $96 per share No. Account Titles and Explanation Debit Credit 1. Treasury Stock 28130 Cash 28130

Explanation / Answer

Solution:

Stockholders’ Equity

December 31, 2018

Common Stock

$493,700

Retained Earnings (321,200 – 92940 – 1610 + Net Income 95200)

$321,850

Total Paid in Capital and Retained Earnings

$815,550

Less:

Treasury Stock (490 Repurchase – 340 Sold)share x 105)

$15,750

Total Stockholders' Equity

$799,800

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