Common stock-$10 par value, 110,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,000 shares of its own stock at $23 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 2,000 of its treasury shares at $27 cash per share. August 22 Sold 2,000 of its treasury shares at $19 cash per share. September 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record October 28 Paid the dividend declared on September 5. December 31 Closed the $444,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Requirement General Journal General Ledger Trial Balance Statement of Stockholders RE Equity $ 400,000 60,000 330,000 $ 790,000 Impact on Equity For each transaction, indicate the impact on total stockholders' equity. Enter decreases to equity as negative values. Verify that total Stockholders' equity as of December 31, as calculated, agrees with the amount reported on the balance sheet.
Common stock-$10 par value, 110,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,000 shares of its own stock at $23 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 2,000 of its treasury shares at $27 cash per share. August 22 Sold 2,000 of its treasury shares at $19 cash per share. September 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record October 28 Paid the dividend declared on September 5. December 31 Closed the $444,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Requirement General Journal General Ledger Trial Balance Statement of Stockholders RE Equity $ 400,000 60,000 330,000 $ 790,000 Impact on Equity For each transaction, indicate the impact on total stockholders' equity. Enter decreases to equity as negative values. Verify that total Stockholders' equity as of December 31, as calculated, agrees with the amount reported on the balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Common stock-$10 par value, 110,000 shares authorized, 40,000 shares issued and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
Total stockholders' equity
During the year, the following transactions affected its stockholders' equity accounts.
January 2 Purchased 4,000 shares of its own stock at $23 cash per share.
January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.
February 28 Paid the dividend declared on January 5.
July 6 Sold 2,000 of its treasury shares at $27 cash per share.
August 22 Sold 2,000 of its treasury shares at $19 cash per share.
September 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record
October 28 Paid the dividend declared on September 5.
December 31 Closed the $444,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Requirement
General
Journal
General
Ledger
Total Stockholders' Equity - January 1
January 2) Purchased 4,000 shares of its own
stock at $23 cash per share.
January 5) Directors declared a $2 per share cash
dividend payable on February 28 to the February 5
stockholders of record.
February 28) Paid the dividend declared on
January 5.
For each transaction, indicate the impact on total stockholders' equity. Enter decreases to equity as negative
values. Verify that total Stockholders' equity as of December 31, as calculated, agrees with the amount reported on the
balance sheet.
July 6) Sold 2,000 of its treasury shares at $27
cash per share.
Trial Balance
August 22) Sold 2,000 of its treasury shares at $19
cash per share.
September 5) Directors declared a $2 per share
cash dividend payable on October 28 to the
September 25 stockholders of record.
October 28) Paid the dividend declared on
September 5.
Statement of
RE
December 31) Closed the $444,000 credit balance
(from net income) in the Income Summary account
to Datainer Faminne
Stockholders Impact on
Equity
Equity
Impact on equity
$ 400,000
60,000
330,000
$ 790,000
Dates: January 01
to: January 01
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