Knapp Industries began business on January 1, 2021 by Issuing all of its 2,100,000 authorized shares of Its $1 par value common stock for $40 per share. On June 30, Knapp declared a cash dividend of $1.75 per share to stockholders of record on July 31. Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 420,000 of its own shares of stock for $45 per share. On December 22, Knapp resold 210,000 of these shares for $51 per share. Required: a. Prepare all of the necessary Journal entries to record the events described above. b. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021 assuming that the net income for the year was $13,000,000.
Knapp Industries began business on January 1, 2021 by Issuing all of its 2,100,000 authorized shares of Its $1 par value common stock for $40 per share. On June 30, Knapp declared a cash dividend of $1.75 per share to stockholders of record on July 31. Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 420,000 of its own shares of stock for $45 per share. On December 22, Knapp resold 210,000 of these shares for $51 per share. Required: a. Prepare all of the necessary Journal entries to record the events described above. b. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021 assuming that the net income for the year was $13,000,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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