Journalizing dividend and treasury stock transactions, preparing a statement of retained earnings, and preparing stockholders’ equityThe balance sheet of Goldstein Management Consulting, Inc. at December 31, 2017, reported the following stockholders’ equity:During 2018, Goldstcin completed thc Following selected transactions:RequirementsRecord the transactions in the general journal.Prepare a retained earnings statement for the year ended December 31, 2018. Assume Goldstein’s net income for the year was $90,000.Prepare the stockholders’ equity section of the balance sheet at December 31, 2018. Stockholders' EquityPaid-In Capital:Common Stock-$10 Par Value; 350,000 sharesauthorized, 32,000 shares issued and outstanding$ 320,000Paid-In Capital in Excess of Par-CommonTotal Paid-In Capital330,000650,000Retained EarningsTotal Stockholders' Equity160,000$ 810,000 Feb. 6 Declared a 15% stock dividend on common stock. The market value ofGoldstein's stock was $25 per share.15 Distributed the stock dividend.Jul. 29 Purchased 2,300 shares of treasury stock at $25 per share.Nov. 27 Declared a $0.10 per share cash dividend on the common stock outstanding.

Record the transactions in the general journal. Date Account Titles and Explanation Post Ref.…

Answered: Stockholders' Equity Paid-In Capital:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Journalizing dividend and treasury stock transactions, preparing a statement of retained earnings, and preparing stockholders’ equity

The balance sheet of Goldstein Management Consulting, Inc. at December 31, 2017, reported the following stockholders’ equity:

During 2018, Goldstcin completed thc Following selected transactions:

Requirements

Record the transactions in the general journal.
Prepare a retained earnings statement for the year ended December 31, 2018. Assume Goldstein’s net income for the year was $90,000.
Prepare the stockholders’ equity section of the balance sheet at December 31, 2018.

Stockholders' Equity
Paid-In Capital:
Common Stock-$10 Par Value; 350,000 shares
authorized, 32,000 shares issued and outstanding
$ 320,000
Paid-In Capital in Excess of Par-Common
Total Paid-In Capital
330,000
650,000
Retained Earnings
Total Stockholders' Equity
160,000
$ 810,000

Feb. 6 Declared a 15% stock dividend on common stock. The market value of
Goldstein's stock was $25 per share.
15 Distributed the stock dividend.
Jul. 29 Purchased 2,300 shares of treasury stock at $25 per share.
Nov. 27 Declared a $0.10 per share cash dividend on the common stock outstanding.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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