Alex Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding $ 825,000 66,000 350,000 $ 1,241,000 Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 3,300 shares of its own stock at $25 cash per share. January 7 February 28 Paid the dividend declared on January 7. July 9 Sold 1,320 of its treasury shares at $30 cash per share. August 27 Sold 1,650 of its treasury shares at $21 cash per share. September 9 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record. Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. October 22 Paid the dividend declared on September 9. December 31 Closed the $55,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year.
Alex Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding $ 825,000 66,000 350,000 $ 1,241,000 Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 3,300 shares of its own stock at $25 cash per share. January 7 February 28 Paid the dividend declared on January 7. July 9 Sold 1,320 of its treasury shares at $30 cash per share. August 27 Sold 1,650 of its treasury shares at $21 cash per share. September 9 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record. Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. October 22 Paid the dividend declared on September 9. December 31 Closed the $55,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A3
Transcribed Image Text:Alex Corporation reports the following components of stockholders' equity at December 31 of the prior year.
Common stock-$25 par value, 50,000 shares authorized, 33,000 shares
issued and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
Total stockholders' equity
During the current year, the following transactions affected its stockholders' equity accounts.
January 2 Purchased 3,300 shares of its own stock at $25 cash per share.
January 7
Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of
record.
Paid the dividend declared on January 7.
Sold 1,320 of its treasury shares at $30 cash per share.
February 28
July 9
August 27
September 9
Sold 1,650 of its treasury shares at $21 cash per share.
Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of
October 22 Paid the dividend declared on September 9.
record.
December 31 Closed the $55,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Required:
1. Prepare journal entries to record each of these transactions.
2. Prepare a statement of retained earnings for the current year ended December 31.
3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year.
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.
View transaction list
Journal entry worksheet
<
1
2
3
Date
August 27
Note: Enter debits before credits.
4
5
6
Record the reissue of 1,650 shares of the treasury stock for $21 cash per
share.
General Journal
7
8
$ 825,000
66,000
350,000
$ 1,241,000
Debit
Credit
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