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Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $8 par value, 300,000 shares authorized, 60,000 shares 480,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 720,000 From treasury stock 45,000 765,000 Retained earnings 522,000 1,767,000 Less: Treasury stock (6,000 shares) at cost 207,000 Total Stockholders’ Equity 1,560,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $31 cash per share. Mar. 12 Sold all of the treasury shares for $42 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $37 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $39 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions.

Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $8 par value, 300,000 shares authorized, 60,000 shares 480,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 720,000 From treasury stock 45,000 765,000 Retained earnings 522,000 1,767,000 Less: Treasury stock (6,000 shares) at cost 207,000 Total Stockholders’ Equity 1,560,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $31 cash per share. Mar. 12 Sold all of the treasury shares for $42 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $37 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $39 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...
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Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $8 par value, 300,000 shares authorized, 60,000 shares 480,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 720,000 From treasury stock 45,000 765,000 Retained earnings 522,000 1,767,000 Less: Treasury stock (6,000 shares) at cost 207.000 Total Stockholdersâ€TM Equity 1,560,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $31 cash per share. Mar. 12 Sold all of the treasury shares for $42 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $37 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $39 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders†equity. Net income for the year is $511,500. General Journal Date Description Debit Credit Jan.8 Cash 465,000 v $ Common Stock 120,000 v Paid-in-Capital in Excess of Par Value 345,000 v Issued shares of common stock. Mar.12 Cash 252,000 v Treasury Stock Paid-in-Capital from Treasury Stock 207,000 v 45,000 v Sold shares of treasury stock. Jun.30 Stock Dividends 138,750 v Stock Dividend Distributable Paid-in-Capital in Excess of Par Value Declared stock dividend. Jul.10 Stock Dividend Distributable 0 x Common Stock Issued shares of common stock declared as dividend. Oct.7 Treasury Stock 97,500 v Cash 97,500 v Purchased shares of common stock for treasury. Dec. 18 Retained earnings 0 x Dividends Payable Declared cash dividend. Dec.31 Income Summary 511,500 v Retained earnings 511,500 v To close the income summary account. Dec.31 Retained earnings 0 x Stock dividends Cash Dividends To close the dividend accounts.
Transcribed Image Text:Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $8 par value, 300,000 shares authorized, 60,000 shares 480,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 720,000 From treasury stock 45,000 765,000 Retained earnings 522,000 1,767,000 Less: Treasury stock (6,000 shares) at cost 207.000 Total Stockholdersâ€TM Equity 1,560,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $31 cash per share. Mar. 12 Sold all of the treasury shares for $42 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $37 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $39 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders†equity. Net income for the year is $511,500. General Journal Date Description Debit Credit Jan.8 Cash 465,000 v $ Common Stock 120,000 v Paid-in-Capital in Excess of Par Value 345,000 v Issued shares of common stock. Mar.12 Cash 252,000 v Treasury Stock Paid-in-Capital from Treasury Stock 207,000 v 45,000 v Sold shares of treasury stock. Jun.30 Stock Dividends 138,750 v Stock Dividend Distributable Paid-in-Capital in Excess of Par Value Declared stock dividend. Jul.10 Stock Dividend Distributable 0 x Common Stock Issued shares of common stock declared as dividend. Oct.7 Treasury Stock 97,500 v Cash 97,500 v Purchased shares of common stock for treasury. Dec. 18 Retained earnings 0 x Dividends Payable Declared cash dividend. Dec.31 Income Summary 511,500 v Retained earnings 511,500 v To close the income summary account. Dec.31 Retained earnings 0 x Stock dividends Cash Dividends To close the dividend accounts.
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