$ Ontario Corporation reports the following components of stockholders' equity on January 1. 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. Statement of Stockholders RE Equity Impact on Equity Prepare the Statement of Retained Earnings for Ontario Corporation for the year ended December 31. ONTARIO CORPORATION Statement of Retained Earnings For Year Ended December 31 Requirement General Journal General Ledger $ Trial Balance 0 0 < Trial Balance $ 400,000 60,000 330,000 $ 790,000 Stockholders Equity >
$ Ontario Corporation reports the following components of stockholders' equity on January 1. 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. Statement of Stockholders RE Equity Impact on Equity Prepare the Statement of Retained Earnings for Ontario Corporation for the year ended December 31. ONTARIO CORPORATION Statement of Retained Earnings For Year Ended December 31 Requirement General Journal General Ledger $ Trial Balance 0 0 < Trial Balance $ 400,000 60,000 330,000 $ 790,000 Stockholders Equity >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ontario Corporation reports the following components of stockholders' equity on January 1.
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.
Statement of Stockholders
RE
Equity
Impact on
Equity
Prepare the Statement of Retained Earnings for Ontario Corporation for the year ended December 31.
ONTARIO CORPORATION
Statement of Retained Earnings
For Year Ended December 31
Requirement
General
Journal
General
Ledger
$
Trial Balance
0
0
$ 400,000
60,000
330,000
$ 790,000
< Trial Balance
Stockholders Equity >
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