Delray Company reports the following components of stockholders' equity on January 1. Common stock-$10 par value, 120,000 shares authorized, 50,000 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 5,000 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 a record. February 28 Paid the dividend declared on January 5. Sold 2,500 of its July 6 treasury shares at $27 cash per share. August 22 Sold 2,500 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 record. October 28 Paid the dividend declared on September 5. December 31 Closed the $259,500 credit balance (from net income) in the Income Summary account to Retained Earnings: General Requirement Journal General Ledger Trial Balance $ 500,000 75,000 410,000 $ 985,000 Statement of RE Stockholders Equity Impact on Equity

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

Complete journal entry 1-8 pleaee and thank you

**Stockholders’ Equity Analysis for Delray Company**

### Stockholders’ Equity Components on January 1

- **Common Stock**  
  - $10 par value, 120,000 shares authorized  
  - 50,000 shares issued and outstanding  
  - Value: $500,000

- **Paid-in Capital in Excess of Par Value, Common Stock**  
  - Value: $75,000

- **Retained Earnings**  
  - Value: $410,000

- **Total Stockholders’ Equity**  
  - Value: $985,000

---

### Transactions Affecting Stockholders’ Equity

**January 2**  
- Purchased 5,000 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 2,500 of its treasury shares at $27 cash per share.

**August 20**  
- Sold 2,500 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 $259,500 credit balance (from net income) in the Income Summary account to Retained Earnings.

---

### Journal Entry Instructions

- **Requirements:**  
  Follow steps to prepare the necessary journal entries for each transaction. If no journal entry is required for a specific transaction, select "No journal entry required."

- **Worksheet Tabs:**  
  1. Purchased 5,000 shares of its own stock at $23 cash per share.
  - Continue filling out the worksheet for each transaction as listed above.

**Please Note:**  
The details of journal entries, ledgers, trial balance, statement of retained earnings, stockholders' equity, and their impact on equity are to be completed as you proceed with each transaction. Use the provided tools to analyze and reflect the changes in financial statements.

---

This educational overview is designed to guide you through the implications of stock transactions on a company’s equity and financial statements.
Transcribed Image Text:**Stockholders’ Equity Analysis for Delray Company** ### Stockholders’ Equity Components on January 1 - **Common Stock** - $10 par value, 120,000 shares authorized - 50,000 shares issued and outstanding - Value: $500,000 - **Paid-in Capital in Excess of Par Value, Common Stock** - Value: $75,000 - **Retained Earnings** - Value: $410,000 - **Total Stockholders’ Equity** - Value: $985,000 --- ### Transactions Affecting Stockholders’ Equity **January 2** - Purchased 5,000 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 2,500 of its treasury shares at $27 cash per share. **August 20** - Sold 2,500 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 $259,500 credit balance (from net income) in the Income Summary account to Retained Earnings. --- ### Journal Entry Instructions - **Requirements:** Follow steps to prepare the necessary journal entries for each transaction. If no journal entry is required for a specific transaction, select "No journal entry required." - **Worksheet Tabs:** 1. Purchased 5,000 shares of its own stock at $23 cash per share. - Continue filling out the worksheet for each transaction as listed above. **Please Note:** The details of journal entries, ledgers, trial balance, statement of retained earnings, stockholders' equity, and their impact on equity are to be completed as you proceed with each transaction. Use the provided tools to analyze and reflect the changes in financial statements. --- This educational overview is designed to guide you through the implications of stock transactions on a company’s equity and financial statements.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education