Alexander Corporation reports the following components of stockholders' equity at December 31, 2019 Common stock-$25 par value, 60,000 shares authorized, 39,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 3,900 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 recor February 28 Paid the dividend declared on January 7. July 9 Sold 1,560 of its treasury shares at $30 cash per share. August 27 Sold 1,950 of its treasury shares at $20 cash per share. September 9 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 $61,000 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 year ended December 31, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020. $ 975,000 78,000 371,000 $1,424,000 Answer is not complete.
Alexander Corporation reports the following components of stockholders' equity at December 31, 2019 Common stock-$25 par value, 60,000 shares authorized, 39,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 3,900 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 recor February 28 Paid the dividend declared on January 7. July 9 Sold 1,560 of its treasury shares at $30 cash per share. August 27 Sold 1,950 of its treasury shares at $20 cash per share. September 9 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 $61,000 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 year ended December 31, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020. $ 975,000 78,000 371,000 $1,424,000 Answer is not complete.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Alexander Corporation reports the following components of stockholders' equity at December 31, 2019.
Common stock-$25 par value, 60,000 shares authorized, 39,000 shares issued and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
Total stockholders' equity
During 2020, the following transactions affected its stockholders' equity accounts.
January 2 Purchased 3,900 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
February 28 Paid the dividend declared on January 7.
July 9 Sold 1,560 of its treasury shares at $30 cash per share.
August 27 Sold 1,950 of its treasury shares at $20 cash per share.
September 9 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 $61,000 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 year ended December 31, 2020.
3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Prepare a statement of retained earnings for the year ended December 31, 2020.
Note: Amounts to be deducted should be indicated by a minus sign.
ALEXANDER CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2020
$
Beginning retained earnings
Add: Net income
Less: Cash dividends declared
Loss Treasury stock reissuances
Ending retained earnings
✔
371,000
61,000
$432,000
♥ (52,650)
♥
(77,220)
S302,130
< Required 1
$ 975,000
78,000
371,000
$ 1,424,000
Required 3 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education