Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 50,000 shares authorized, 30,000 shares issued and outstanding Paid-in capital in excess of par value, connon stock Retained earnings Total stockholders' equity $ 750, 000 50,000 340, 000 $1,140,000 During 2019, the following transactions affected its stockholders' equity accounts Jan. Jan. 2 Purchased 3,000 shares of its own stock at $25 cash per share. 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 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 September 23 stockholders of 9 Sold 1,200 of its treasury shares at $30 cash per share. record. 22 Paid the dividend dec lared on Septenber 9. Oct. Dec. 31 Closed the $52,000 credit balance (from net income) in the Incone Sunnary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2019. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 11. 3010
Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 50,000 shares authorized, 30,000 shares issued and outstanding Paid-in capital in excess of par value, connon stock Retained earnings Total stockholders' equity $ 750, 000 50,000 340, 000 $1,140,000 During 2019, the following transactions affected its stockholders' equity accounts Jan. Jan. 2 Purchased 3,000 shares of its own stock at $25 cash per share. 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 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 September 23 stockholders of 9 Sold 1,200 of its treasury shares at $30 cash per share. record. 22 Paid the dividend dec lared on Septenber 9. Oct. Dec. 31 Closed the $52,000 credit balance (from net income) in the Incone Sunnary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2019. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 11. 3010
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Alexander Corporation reports the following components of stockholders' equity at December 31, 2018.
Common stock-$25 par value, 5e,eee shares authorized,
30,000 shares issued and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
Total stockholders' equity
$ 750,000
se, e00
348, 000
$1,140, 000
During 2019, the following transactions affected its stockholders' equity accounts
Jan.
Jan.
2 Purchased 3,000 shares of its own stock at $25 cash per share.
7 Directors declared a $1.5e 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
Aug. 27 Sold 1,500 of 1ts 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
9 Sold 1,200 of its treasury shares at $30 cash per share.
record.
Oct. 22 Paid the dividend declared on September 9.
Dec. 31 Closed the $52,00e credit balance (from net income) in the Incone Sumnary account to Retained Earnings.
Required:
1. Prepare Journal entries to record each of these transactions.
2. Prepare a statement of retained earnings for the year ended December 31, 2019.
3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019.
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