GL1101 - Based on Problem 11-2A LO C3, P2, P3 Austin Company 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 $ 400,000 60,000 330,000 $ 790,000 Total stockholders' equity During the year, the following transactions affected its stockholders' equity accounts. 2 Purchased 4,000 shares of its own stock at $23 cash per share. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 st Jan. Jan. record. 28 Paid the dividend declared on January 5. 6 Sold 1,500 of its treasury shares at $27 cash per share. Feb. July
GL1101 - Based on Problem 11-2A LO C3, P2, P3 Austin Company 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 $ 400,000 60,000 330,000 $ 790,000 Total stockholders' equity During the year, the following transactions affected its stockholders' equity accounts. 2 Purchased 4,000 shares of its own stock at $23 cash per share. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 st Jan. Jan. record. 28 Paid the dividend declared on January 5. 6 Sold 1,500 of its treasury shares at $27 cash per share. Feb. July
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:GL1101 - Based on Problem 11-2A LO C3, P2, P3
Austin Company 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
$ 400,000
60,000
330,000
Total stockholders' equity
$ 790,000
During the year, the following transactions affected its stockholders' equity accounts.
2 Purchased 4,000 shares of its own stock at $23 cash per share.
5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of
Jan.
Jan.
record.
28 Paid the dividend declared on January 5.
6 Sold 1,500 of its treasury shares at $27 cash per share.
22 Sold 2,500 of its treasury shares at $20 cash per share.
5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of
Feb.
July
Aug.
Sept.
record.
28 Paid the dividend declared on September 5.
31 Closed the $497,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Oct.
Dec.
Statement of
Stockholders
Impact on
Equity
General
General
Requirement
Trial Balance
Equity
Journal
Ledger
RE
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.
Dates: Jan 01
v to: Dec 31
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Transcribed Image Text:28 Paid the dividend declared on September 5.
31 Closed the $497,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Oct.
Dec.
Impact on
Equity
General
Statement of
Stockholders
General
Journal
Requirement
Ledger
Trial Balance
Equity
RE
For each transaction, indicate the impact on total stockholders' equlty. 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.
Dates: Jan 01
to: Dec 31
Impact on equity
Total Stockholders' Equity - January 1
Jan. 2) Purchased 4,000 shares of its own stock at
$23 cash per share.
Jan. 5) Directors declareda $2 per share cash
dividend payable on Feb. 28 to the Feb. 5
stockholders of record.
Feb. 28) Paid the dividend declared on January 5.
Jul. 6) Sold 1,500 of its treasury shares at $27
cash per share.
Aug. 22) Sold 2,500 of its treasury shares at $20
cash per share.
Sep. 5) Directors declared a $2 per share cash
dividend payable on October 28 to the September
25 stockholders of record.
Oct. 28) Paid the dividend declared on September
5.
Dec. 31) Closed the $497,000 credit balance (from
net income) in the Income Summary account to
Retained Earnings.
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