Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

How do I do this?

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: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:
c) Shareholders' Equity: Contributed Capital: January 31, 2019 Common Stock APIC Total Contributed Capital Retained Earnings Treasury Stock Total Shareholders' Equity
Transcribed Image Text:c) Shareholders' Equity: Contributed Capital: January 31, 2019 Common Stock APIC Total Contributed Capital Retained Earnings Treasury Stock Total Shareholders' Equity
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Value Chain Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS