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Problem 13-2B Cash dividends, treasury stock, and statement of retained earnings C3 P2 P3 Balthus Corp. reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$1 par value, 320,000 shares authorized, 200,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 200,000 1,400,000 2,160,000 $3,760,000 It completed the following transactions related to stockholders' equity during the current year. Jan. 10 Purchased 40,000 shares of its own stock at $12 cash per share. Mar. 2 Directors declared a $1.50 per share cash dividend payable on March 31 to the March 15 stockholders of record. Paid the dividend declared on March 2. Sold 24,000 of its treasury shares at $13 cash per share. Sold 16,000 of its treasury shares at $10.50 cash per share. Directors declared a $2.50 per share cash dividend payable on January 2 to the December 10 stockholders of record. Dec. 31 Closed the $1,072,000 credit balance (from Income Summary account to Retained Earnings. income) in the Mar. 31 Nov. 11 Nov. 25 Dec. 1 Required 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December

Problem 13-2B Cash dividends, treasury stock, and statement of retained earnings C3 P2 P3 Balthus Corp. reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$1 par value, 320,000 shares authorized, 200,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 200,000 1,400,000 2,160,000 $3,760,000 It completed the following transactions related to stockholders' equity during the current year. Jan. 10 Purchased 40,000 shares of its own stock at $12 cash per share. Mar. 2 Directors declared a $1.50 per share cash dividend payable on March 31 to the March 15 stockholders of record. Paid the dividend declared on March 2. Sold 24,000 of its treasury shares at $13 cash per share. Sold 16,000 of its treasury shares at $10.50 cash per share. Directors declared a $2.50 per share cash dividend payable on January 2 to the December 10 stockholders of record. Dec. 31 Closed the $1,072,000 credit balance (from Income Summary account to Retained Earnings. income) in the Mar. 31 Nov. 11 Nov. 25 Dec. 1 Required 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December

FINANCIAL ACCOUNTING
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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Problem 13-2B Cash dividends, treasury stock, and statement of retained earnings C3 P2 P3 Balthus Corp. reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$1 par value, 320,000 shares authorized, 200,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 200,000 1,400,000 2,160,000 $3,760,000 It completed the following transactions related to stockholders' equity during the current year. Jan. 10 Purchased 40,000 shares of its own stock at $12 cash per share. Mar. 2 Directors declared a $1.50 per share cash dividend payable on March 31 to the March 15 stockholders of record. Paid the dividend declared on March 2. Sold 24,000 of its treasury shares at $13 cash per share. Sold 16,000 of its treasury shares at $10.50 cash per share. Directors declared a $2.50 per share cash dividend payable on January 2 to the December 10 stockholders of record. Closed the $1,072,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Mar. 31 Nov. 11 Nov. 25 Dec. 1 Dec. 31 Required 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December
Transcribed Image Text:Problem 13-2B Cash dividends, treasury stock, and statement of retained earnings C3 P2 P3 Balthus Corp. reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$1 par value, 320,000 shares authorized, 200,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 200,000 1,400,000 2,160,000 $3,760,000 It completed the following transactions related to stockholders' equity during the current year. Jan. 10 Purchased 40,000 shares of its own stock at $12 cash per share. Mar. 2 Directors declared a $1.50 per share cash dividend payable on March 31 to the March 15 stockholders of record. Paid the dividend declared on March 2. Sold 24,000 of its treasury shares at $13 cash per share. Sold 16,000 of its treasury shares at $10.50 cash per share. Directors declared a $2.50 per share cash dividend payable on January 2 to the December 10 stockholders of record. Closed the $1,072,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Mar. 31 Nov. 11 Nov. 25 Dec. 1 Dec. 31 Required 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December
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