**Title: Analyzing Stockholders' Equity for Delray Company****Overview:**Delray Company provides a detailed report of its stockholders' equity components as of January 1, along with transactions affecting these accounts throughout the year. The initial equity consists of common stock, paid-in capital, and retained earnings.**Starting Stockholders' Equity:**- Common stock ($10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding): $500,000- Paid-in capital in excess of par value, common stock: $75,000- Retained earnings: $410,000- Total stockholders' equity: $985,000**Yearly Transactions:**1. **January 2:** Purchased 5,000 shares of its own stock at $23 per share.2. **January 5:** Directors declared a $2 per share cash dividend, payable on February 28, to the stockholders on record as of February 5.3. **February 28:** Paid the above dividend declared on January 5.4. **July 6:** Sold 2,500 shares of treasury stock at $27 per share.5. **August 22:** Sold 2,500 more shares from treasury stock at $19 per share.6. **September 5:** Directors declared another $2 per share cash dividend, payable on October 28, to the stockholders on record as of September 25.7. **October 28:** Paid the dividend declared on September 5.8. **December 31:** Closed the $259,500 credit balance (net income) in the Income Summary account to Retained Earnings.**Statement Preparation:**Students are required to prepare a Statement of Retained Earnings for Delray Corporation for the year ended December 31.**Diagram/Graph Explanation:**The image contains a form with sections for entering various figures to complete the Statement of Retained Earnings. This includes starting figures, adjustments based on transactions, and the final amount for retained earnings.*Note: The form is a structured layout where users fill in specific financial data to compute the year-end Retained Earnings.*

The statement of retained earnings, a crucial financial document, details the amount of earnings a company has accrued and held since its founding. The figures reveal a company's financial situation and the owner's perspective on expanding and reinvesting in the company. Answer : Statement of Retained Earning Statement: For the year 31 December Beginning Retained Earning $ 410,000 Add: Net Income $ 280,500 Less: Cash Dividend $ -90,000 Less: Cash Dividend $ -100,000 Ending Retained Earning $ 500,500

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Accounting

GL1101 (Algo) - Based on Problem 11-2A LO C3, P2, P3 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. $ 500,000 75,000 410,000 $ 985,000 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. ebruary 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. eptember 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. 21 Cloond the $259 500 credit balance from net income in the Income Summary account to Retained Earnings.

GL1101 (Algo) - Based on Problem 11-2A LO C3, P2, P3 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. $ 500,000 75,000 410,000 $ 985,000 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. ebruary 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. eptember 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. 21 Cloond the $259 500 credit balance from net income in the Income Summary account to Retained Earnings.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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