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Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020

Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020

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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Alexander Corporation reports the following components of stockholders' equity at December 31, 2019 Common stock-$25 par value, 60,000 shares authorized, 39,eee shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 3,900 shares of its own stock at $25 cash per share. January 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record. February 28 Paid the dividend declared on January 7. July 9 Sold 1,560 of its treasury shares at $30 cash per share. August 27 Sold 1,950 of its treasury shares at $20 cash per share. September 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. October 22 Paid the dividend declared on September 9. December 31 Closed the $61,eee credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2. Required 3 Prepare a statement of retained earnings for the year ended December 31, 2020. Note: Amounts to be deducted should be indicated by a minus sign. ALEXANDER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2020 Beginning retained earnings Add: Net income Less Cash dividends declared Less Treasury stock reissuances Ending retained earnings 00 000 $ $ 0 0 <Required 1. $ 975,000 78,000 371,000 $ 1,424,000 Required 3
Transcribed Image Text:Alexander Corporation reports the following components of stockholders' equity at December 31, 2019 Common stock-$25 par value, 60,000 shares authorized, 39,eee shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 3,900 shares of its own stock at $25 cash per share. January 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record. February 28 Paid the dividend declared on January 7. July 9 Sold 1,560 of its treasury shares at $30 cash per share. August 27 Sold 1,950 of its treasury shares at $20 cash per share. September 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. October 22 Paid the dividend declared on September 9. December 31 Closed the $61,eee credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2. Required 3 Prepare a statement of retained earnings for the year ended December 31, 2020. Note: Amounts to be deducted should be indicated by a minus sign. ALEXANDER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2020 Beginning retained earnings Add: Net income Less Cash dividends declared Less Treasury stock reissuances Ending retained earnings 00 000 $ $ 0 0 <Required 1. $ 975,000 78,000 371,000 $ 1,424,000 Required 3
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