ex Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding $ 825,000 66,000 350,000 $ 1,241,000 Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity uring the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 3,300 shares of its own stock at $25 cash per share. January 7 ebruary 28 Paid the dividend declared on January 7. July 9 Sold 1,320 of its treasury shares at $30 cash per share. Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stoc record.
ex Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding $ 825,000 66,000 350,000 $ 1,241,000 Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity uring the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 3,300 shares of its own stock at $25 cash per share. January 7 ebruary 28 Paid the dividend declared on January 7. July 9 Sold 1,320 of its treasury shares at $30 cash per share. Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stoc record.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
3
Transcribed Image Text:Alex Corporation reports the following components of stockholders' equity at December 31 of the prior year.
Common stock-$25 par value, 50,000 shares authorized, 33,000 shares
issued and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
Total stockholders' equity
During the current year, the following transactions affected its stockholders' equity accounts.
January 2 Purchased 3,300 shares of its own stock at $25 cash per share.
January 7
February 28
July 9
August 27
September 9
Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of
record.
Paid the dividend declared on January 7.
Sold 1,320 of its treasury shares at $30 cash per share.
Sold 1,650 of its treasury shares at $21 cash per share.
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 $55,000 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 current year ended December 31.
3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare journal entries to record each of these transactions.
View transaction list
Journal entry worksheet
1
Required 3
2
Date
January 02
Note: Enter debits before credits.
3
4
5
General Journal
6
Record the purchase of 3,300 shares of its own common stock for $25 cash
per share.
$ 825,000
66,000
350,000
$ 1,241,000
7
8
Debit
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 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