Problem #2: On January 1, 2019, selected financial data of CK includes the following account balances: Shareholders' Equity: Contributed Capital: Common Stock ($1 par) APIC (add paid in capital) Total Contribute Capital Retained Earnings Total Shareholders' Equity January 1, 2019 $ 10,000 S80.000 $ 90,000 S 45,100 $135,100 January Transactions: January 2: Issue an additional 2,000 shares of $1 par value common stock for $40,000. January 12: Purchase 1,000 share of treasury stock for $18 per share January 29: Declare a cash dividend of $0.30 per share to all shares outstanding on January 29. The dividend is payable on February 15 (Hint: Ck had 10,000 shares outstanding on January 1, 2019 and dividends are not paid on treasury stock). January 30: Resell 600 shares of treasury stock for $20 per share. Required: a) Prepare the journal entries for the above transactions. b) which financial statements are dividends declared and dividends payable reported in at January 31? c) Prepare the January 31" stockholders' equity section of the balance sheet, assuming the company had net income of $21,400 for January.
Problem #2: On January 1, 2019, selected financial data of CK includes the following account balances: Shareholders' Equity: Contributed Capital: Common Stock ($1 par) APIC (add paid in capital) Total Contribute Capital Retained Earnings Total Shareholders' Equity January 1, 2019 $ 10,000 S80.000 $ 90,000 S 45,100 $135,100 January Transactions: January 2: Issue an additional 2,000 shares of $1 par value common stock for $40,000. January 12: Purchase 1,000 share of treasury stock for $18 per share January 29: Declare a cash dividend of $0.30 per share to all shares outstanding on January 29. The dividend is payable on February 15 (Hint: Ck had 10,000 shares outstanding on January 1, 2019 and dividends are not paid on treasury stock). January 30: Resell 600 shares of treasury stock for $20 per share. Required: a) Prepare the journal entries for the above transactions. b) which financial statements are dividends declared and dividends payable reported in at January 31? c) Prepare the January 31" stockholders' equity section of the balance sheet, assuming the company had net income of $21,400 for January.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem #2:
On January 1, 2019, selected financial data of CK includes the following account balances:
Shareholders' Equity:
Contributed Capital:
Common Stock ($1 par)
APIC (adgl paid in capital)
Total Contribute Capital
Retained Earnings
Total Shareholders' Equity
January 1, 2019
$ 10,000
$ 80.000
$ 90,000
$ 45.100
$135,100
January Transactions:
January 2: Issue an additional 2,000 shares of $1 par value common stock for $40,000.
January 12: Purchase 1,000 share of treasury stock for $18 per share
January 29: Declare a cash dividend of $0.30 per share to all shares outstanding on January 29. The dividend
is payable on February 15 (Hint: Ck had 10,000 shares outstanding on January 1, 2019 and
dividends are not paid on treasury stock).
January 30: Resell 600 shares of treasury stock for $20 per share.
Required:
a) Prepare the journal entries for the above transactions.
b) which financial statements are dividends declared and dividends payable reported in at January 31?
c) Prepare the January 31" stockholders' equity section of the balance sheet, assuming the company had
net income of $21,400 for January.
a) Journal Entries:
Accounts
Debit
Credit
Jan 2
Jan 12
Jan 29
Jan 30
b)
Dividends declared:
Dividends payable:
Transcribed Image Text:c)
Shareholders' Equity:
Contributed Capital:
January 31, 2019
Common Stock
APIC
Total Contributed Capital
Retained Earnings
Treasury Stock
Total Shareholders' Equity
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